One97 Communication, the parent firm of Paytm, fell as much as 7.7% to an intra-day low of Rs 669.80. The company reported a net profit of Rs 930 crore in the second quarter of FY25 against a loss of Rs 290 crore posted in the same quarter a year ago.
However, the company’s revenue from operations declined by 34% on year to Rs 1,659 crore in Q2 FY25 compared to Rs 1,095 crore in Q2 FY24. The gain in net profit can be attributed to the sale of the ticketing business to Zomato.
If the sale of the ticketing business is kept aside then it is still a loss-making company of Rs 495 crore for the reporting quarter. The loss has widened by 70% compared to the previous fiscal year.
Paytm’s Q1 performance
The company recorded a consolidated net loss of Rs 839 crore in Q1 FY25 widened from Rs 357 crore in Q1 FY24. Its revenue from operations stood at Rs 1,502 crore in the previous quarter of FY25 declining from Rs 2,342 crore in Q1 FY24.
RBI cracked whip on Paytm
In March 2024, the lender of last resort cracked its whip on the company over irregularities in KYC (know your customer) norms, compliance issues, and related party transactions. The RBI was concerned regarding money laundering and questionable transactions involving crores of rupees.
Also ReadPaytm swings back to profit at Rs 928.30 crore on gains from ticketing business sale, revenue drops by 34.1% YoY
Paytm Vs Nifty 50
Paytm stock has fallen 4.3% in the last five trading sessions. However, it has given a 7% return in the past one month and 84% in the last six months. From year to date, the stock has given 8%. However, it erased 25% of the wealth in the last one year.
To compare, the benchmark index Nifty 50 has fallen 1.7% in the last five trading sessions. It has fallen more than 5% in the past one month. However, the index is still in the green, giving a 10% return in the last six months. It has risen 13% from year to date and 28% in the last one year.
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