The share price of One97 Communications fell as much as 3% to an intra-day low of Rs 872.30 after the company reported a net loss in the third quarter of FY24. However, the Paytm share price recovered some ground soon to quote at Rs 899.20 on the National Stock Exchange.
Shares of One97 Communications, the company that operates the Paytm payments platform, announced a consolidated net loss of Rs 208.3 crore in Q3 FY25, slightly narrowed down from Rs 219.8 crore posted in the same quarter of the last fiscal year. Its consolidated revenue from operations declined by 36% year-on-year to Rs 1,828 crore, compared to Rs 2,851 crore in Q3 of FY24.
Sequentially, One97 Communications revenue increased by 10% on the back of a rise in GMV, robust growth in subscription income, and an uptick in revenues from the distribution of financial services.
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Also, the Board has approved the 100% stake sale in one of its step-down subsidiaries. “The Board of Directors of our subsidiary, Mobiquest Mobile Technologies at its meeting held on January 20, 2025, approved the sale of a 100% stake in its wholly owned subsidiary, Xceed IT Solutions (Xceed). Post-consummation of the transaction, Xceed will cease to be a step-down subsidiary of the company,” said One97 Communications in an exchange filing while releasing its quarterly results.
Bernstein maintains ‘Outperform’ rating post Q3
In a research note Bernstein, a brokerage house, said that the company posted solid quarterly results despite a “gloomy operating environment”. The growth came from loan disbursements inching up, payment volumes benefitting from festive boosts, and continued cost control. This resulted in Paytm inching closer to profitability. The brokerage firm has maintained its ‘Outperform’ rating on the stock, with a target price of Rs 1,100.
Paytm in Q2
Paytm reported a net profit of Rs 930 crore for Q2 FY25, compared to a net loss of Rs 290.5 crore during Q2 FY24. The company reported a net profit due to a one-time gain of Rs 1,345 crore, which was due to the sale of the movie ticketing business to Zomato.
In August 2024, One97 Communications sold its entertainment ticketing business to Zomato for a value of rs 2,048 on a cash-free and debt-free basis.
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