Shares of Paytm parent One 97 Communications tumbled 5.8% on the BSE to their day’s low of Rs 683.80 on October 22 after the company reported September quarter results.
Paytm reported a net profit of Rs 930 crore during the quarter, compared to a net loss of Rs 290.5 crore during the same period last year.
The company’s net profit was aided by a one-time gain of Rs 1,345 crore, which was due to sale of movie ticketing business to Zomato.
Paytm would have reported a net loss of Rs 415 crore, excluding the one-time gain, which would have been higher than the loss it reported during the same quarter last year.
Revenue for the quarter declined by 34 per cent from the same quarter last year to Rs 1,660 crore from Rs 2,519 crore.
For the September quarter, Paytm’s Gross Merchandise Value (GMV) increased by 5 per cent on a sequential basis and the management expects this trend in GMV growth to continue accelerating in the current quarter due to the festive season.
The fintech’s 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.
The company’s Financial Services revenue was Rs 376 crore, up 34 per cent QoQ, on account of an increase in collection bonus in merchant loans due to better asset quality trends, and a higher share of merchant loans, Paytm stated in an exchange filing.
At 11:06 am, Paytm shares were trading 3.5 per cent lower at Rs 700.50 on the National Stock Exchange (NSE). The stock has risen around 8 per cent so far this year, underperforming Nifty’s returns of 14 per cent.
In the past 12 months, however, the counter has fallen 24 per cent. In comparison, Nifty rose 28 per cent during this period.
Comments
0 comment