DBT Bureau
Bengaluru, 22 October 2024
One97 Communications Ltd, the parent entity of Paytm on Tuesday reported a net profit of Rs 930 crore for the second quarter as one time gain of Rs 1,345 from the sale of its ticketing business to Zomato boosted its bottom line.
The company posted a net loss of Rs 279 crore in the year-ago period.
The fintech major operating revenue stood at Rs 1,660 crore in Q2 of FY25 as compared to Rs 2,519 crore reported a year ago. However, revenue increased 11% over the previous quarter.
Paytm’s revenue from payment services was at Rs 981 crore, up 9% quarter-on-quarter basis. GMV (Gross Merchandise Value) increased 5% to Rs 4.5 lakh crore by the end of September quarter.
The company said that its merchant subscriber base for devices has reached 1.12 crore, an increase of 3 lakh over the previous quarter.
Financial services revenue of Paytm stood at Rs 376 crore in Q2 of FY25, up 34% over the previous quarter.
The company said that its gross device addition and GMV growth has reached past trend. Early this year, Reserve Bank of India imposed business restrictions on Paytm’s Payment Bank, leading to severe business disruption for the group. However, things are slowly changing for better for the company.
“New subscription paying device merchant sign ups has surpassed January 2024 levels. Our plan is to pick up inactive devices and redeploy them after refurbishment, which helps us reduce capex. When we pick up inactive devices, our merchant count reduces. We plan to continue reactivating merchants and redeploying inactive devices to new merchants over the next 2-3 quarters. This will lead to higher active merchant base and higher revenue,” the company said in an exchange filing on Tuesday.
The company also said that it sees higher cross-sale opportunity of its financial services offerings.
“Low penetration and high engagement of customers on our platform provides opportunity for us to drive cross sell of financial services. We continue to partner with various financial institutions to enhance and widen our financial service offerings,” the company said.
Paytm share price was trading 4.67% lower at Rs 692 in NSE at 11.45 AM post announcement of its Q2 results.
