Paytm
Paytm’s parent company One97 Communications had a net profit of Rs 928.3 crore in the second quarter of the current financial year 2024-25. The company had suffered a loss of Rs 290.5 crore in the second quarter (July-September) of the financial year 2023-24. Giving information about its financial performance, Paytm said, Paytm’s operating income declined by 34.1 percent year-on-year to Rs 1,659.5 crore in the quarter under review. Paytm had a net profit (profit attributable to owners of the parent company) of Rs 928.3 crore in the second quarter. This includes a profit of Rs 1,345 crore from the sale of entertainment ticketing business. However, despite this, the company’s shares fell by 7% today. As of 1 pm on Tuesday, Paytm stock was trading at Rs 680.80, down 6.22%.
Why did the stock fall so much?
Despite strong financial results, Paytm shares are trading with a big decline today. Let us tell you that in the last one year, Paytm shares have fallen by 21.3%, while the Sensex has increased by 26%. Overall, while Paytm has returned to profit, the fall in its stock shows that investors are still taking a cautious approach towards the company, especially in view of the company’s declining revenues from operations and past regulatory challenges.
What was said by the company
A statement issued by the company said, ‘The company believes that continued focus on delivery of payments and financial services will drive profitable growth. This is reflected in revenues of Rs 981 crore for the payments business. There has been an increase of nine percent on a quarterly basis. Revenue from financial services stood at Rs 376 crore, up 34 per cent quarter-on-quarter. The company’s indirect costs declined sequentially to Rs 17 crore due to reduction in employee costs, marketing expenses and absence of some one-time expenses in the first quarter of FY 2024-25. Percentage reduced to Rs 1,080 crore.
Latest Business News
