One 97 Communications Ltd, Paytm’s moms and dad, on Tuesday published its first-ever quarterly earnings given that listing. The fintech firm earnings came with Rs 928.3 crore in the 2nd quarter (Q2 FY25) as versus a document loss of Rs 838.9 crore in the previous quarter. Paytm had actually reported a loss of Rs 290.5 crore in Q2 FY24.
The electronic settlement company tape-recorded an extraordinary gain of Rs 1,345.4 crore because of the sale of its ticketing service. Paytm offered the stated service to on-line food collector Zomato in August this year.
“During the quarter, we completed the transaction to sell our entertainment ticketing business to Zomato. The final price, after working capital adjustments, was Rs 2,014 crore, leading to gains of Rs 1,345 crore, which is reported under the exceptional items in the P&L. This transaction has resulted in further strengthening our balance sheet with a cash balance of Rs 9,999 crore,” Paytm mentioned in an exchange declaring.
The firm’s earnings from procedures increased 10.52 percent to Rs 1,659.5 crore, sequentially. But, it slid by 34.11 percent on a year-on-year (YoY) basis.
“Our net payment margin increased 21 per cent QoQ to Rs 465 crore, largely on account of improvement in payment processing margin, better device realization and growth in GMV. Financial Services revenue was Rs 376 crore, up 34 per cent QoQ, on account of increase in collection bonus in merchant loans due to better asset quality trends, and higher share of merchant loans,” Paytm stated.
On regulative upgrade, Paytm stated, “The government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, approved downstream investment from One 97 Communications Ltd into a wholly owned subsidiary, Paytm Payments Services Ltd (PPSL). Post the FDI approval, PPSL has resubmitted its PA application to the Reserve Bank of India (RBI). While we await the RBI approval for onboarding of new online merchants, PPSL continues to provide payment aggregation services to its existing online merchants.”
The fintech company has actually been under remarkable stress given that Reserve Bank of India (RBI) introduced constraints on Paytm Payments Bank’s procedures in 2015 in the middle of relentless non-compliance and proceeded product managerial worries.
On the stock-specific front, Paytm shares were last seen trading 2.39 percent reduced at Rs 708.50.
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