Paytms net loss widens to Rs 840 crore in Q1; stock up 1%
Paytm in its Q1 earnings release said that going forward it expects profitability to improve on the back of growth in operating parameters.
Paytm Q1 results: Fintech major One 97 Communications-running and operating the payments platform entity Paytm released its April-June earnings on Friday. For the reporting quarter, the company’s net loss increased to Rs 840 crore as against Rs 358 crore reported in the same quarter last year. In the March ended-quarter, the company’s loss stood at Rs 550.5 crore.
The company’s operating revenue for the reporting quarter stood at Rs 1,502 crore, down 36 per cent year-on-year (YoY). The same was Rs 2,342 crore in the corresponding quarter last year.
The company expects revenue and profitability to improve, driven by growth in operating parameters such as GMV, an expanding merchant base, recovery in loan distribution business and continued focus on cost optimization, said the company's earnings release.
The company added that its balance sheet position is strong with Rs 8,108 crore of cash on books. Also, it holds stock acquisition rights in PayPay Corporation (5.4% stake, once exercised).
Lately, the company received an ‘administrative warning letter’ from SEBI over related party transactions it had entered into with Paytm Payments Banks (PPBL) in FY22 without due approval of either audit committee or the shareholders.
In a BSE filing, the company said it has consistently acted in compliance with SEBI regulations.
On January 31, 2024, the RBI took action against Paytm Payments Bank Ltd ('PPBL'), a 49% associate of the company, under Section 35A of the Banking Regulation Act, 1949, effectively restricting PPBL 's normal business, permitting only withdrawal of the existing customer balances.
At the last count, post the company's earnings, shares of the company traded higher by over 1 per cent at Rs 449.9 after falling up to Rs 425.65 at day's low.
449.90 +4.85 (+1.09%)
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