MUMBAI: Paytm reported its first ever net profit in the September quarter since it got listed on the bourses in November 2021, helped by a one-time gain accrued through the sale of its entertainment ticketing business to Zomato . Consolidated net profits for the fintech in Q2FY25 stood at Rs930 crore compared to losses of Rs 292 crore posted in the year-ago quarter.
The company whose business has been hit by the Reserve Bank of India’s ( RBI ’s) restrictions on its banking unit posted a decline in revenues during the quarter, disappointing the street. Revenue from operations decreased to Rs 1,660 crore in Q2 from Rs 2,518.6 crore in the year-ago period, recording a year-on-year decline of 34%.
The RBI action prompted by Paytm’s failure to comply with regulations slowed down the pace of the company’s growth. Paytm which rivals players like PhonePe and Google Pay in a competitive fintech market is yet to get approval from the National Payments Corporation of India (NPCI) to onboard new UPI customers. “….along with natural churn and a hold on new UPI user addition, our MTU (monthly transacting user) base has declined from 7.8 crore in Q1FY25 to 7.1 crorein Q2FY25,” Paytm said in its earnings release. On a yearly basis, MTU declined by 25% during Q2. Revenue from its key payments business declined 37% y-o-y to Rs 946 crore in Q2. Earlier this year, the RBI directed Paytm to wind down its payments bank. “Paytm’s personal loans business has been significantly lower, affected given tighter policies of the partner lenders after RBI’s warning,” said independent digital banking consultant Parijat Garg.
Paytm said that it recorded a one-time exceptional gain of Rs1,345 crore on account of the sale of its entertainment ticketing business to Zomato. The stock price of Paytm ended at Rs 687.30 on the BSE on Tuesday, down 5.3% having slipped to a day’s low of Rs 669.65 crore.
The Noida-based firm said that its employee costs have come down by 13% q-o-q in Q2, higher than its guidance of 5%-7% decline while overall indirect costs (excluding ESOP costs) for the quarter declined by 17% q-o-q to Rs 1,080 crore. “Going forward, cost discipline will continue to be our key focus area. While we will remain prudent on the marketing spends, it may increase once we start onboarding new UPI customers,” the company said.
The company whose business has been hit by the Reserve Bank of India’s ( RBI ’s) restrictions on its banking unit posted a decline in revenues during the quarter, disappointing the street. Revenue from operations decreased to Rs 1,660 crore in Q2 from Rs 2,518.6 crore in the year-ago period, recording a year-on-year decline of 34%.
The RBI action prompted by Paytm’s failure to comply with regulations slowed down the pace of the company’s growth. Paytm which rivals players like PhonePe and Google Pay in a competitive fintech market is yet to get approval from the National Payments Corporation of India (NPCI) to onboard new UPI customers. “….along with natural churn and a hold on new UPI user addition, our MTU (monthly transacting user) base has declined from 7.8 crore in Q1FY25 to 7.1 crorein Q2FY25,” Paytm said in its earnings release. On a yearly basis, MTU declined by 25% during Q2. Revenue from its key payments business declined 37% y-o-y to Rs 946 crore in Q2. Earlier this year, the RBI directed Paytm to wind down its payments bank. “Paytm’s personal loans business has been significantly lower, affected given tighter policies of the partner lenders after RBI’s warning,” said independent digital banking consultant Parijat Garg.
Paytm said that it recorded a one-time exceptional gain of Rs1,345 crore on account of the sale of its entertainment ticketing business to Zomato. The stock price of Paytm ended at Rs 687.30 on the BSE on Tuesday, down 5.3% having slipped to a day’s low of Rs 669.65 crore.
The Noida-based firm said that its employee costs have come down by 13% q-o-q in Q2, higher than its guidance of 5%-7% decline while overall indirect costs (excluding ESOP costs) for the quarter declined by 17% q-o-q to Rs 1,080 crore. “Going forward, cost discipline will continue to be our key focus area. While we will remain prudent on the marketing spends, it may increase once we start onboarding new UPI customers,” the company said.
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