The profit this quarter is attributed to a one-time exceptional gain of Rs 1,345 crore because of the sale of the entertainment ticketing business to food delivery company Zomato
Paytm reported a consolidated profit after tax of Rs 928 crore in the quarter ending September 2024, against a loss of Rs 290 crore in the corresponding quarter last year. In its quarterly results released on October 22, the fintech firm mentioned that its revenue has dropped by 34 per cent YoY to Rs 1,660 crore.
The profit this quarter is attributed to a one-time exceptional gain of Rs 1,345 crore because of the sale of the entertainment ticketing business to food delivery company Zomato. Zomato acquired Paytm’s ticketing business in August this year.
Paytm in its filing said that the company’s net payment margin increased 21 per cent QoQ to Rs 465 crore, mostly because of the improvement in payment processing margin, better device realisation and growth in gross merchandise value. Financial services revenue was Rs 376 crore, up 34 per cent QoQ, on account of the increase in collection bonus in merchant loans due to better asset quality trends and a higher share of merchant loans.
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The company also added that the indirect cost has come down by 17 per cent QoQ to Rs 1,080 crore due to the reduction in employee costs, marketing expenses and absence of certain one-time expenses incurred in Q1 FY25. “While we will remain prudent on the marketing spends, it may increase once we start onboarding new UPI customers," the firm said.
Paytm, post the results announcement, was trading at Rs 685 on NSE as of 1pm today. It is down by more than 5 per cent from its previous closing price. The stock touched a peak of Rs 728 and hit a low of Rs 683 during the day. Its market capitalisation at the same time stood at Rs 46,217 crore.