Paytm stock slips 4% as Rs 930 cr Q2 profit from one-time gain fails to impress investors

Paytm recorded an exceptional gain of Rs 1,345.4 crore in Q2FY25 due to the sale of its ticketing business. The fintech sold the said business to online food aggregator Zomato in August this year.

Shares of Paytm parent One 97 Communications fell up to 4 percent on October 22 after the company reported September quarter results. The Vijay Shekhar Sharma-led firm clocked a net profit of Rs 930 crore in Q2FY25, compared to a net loss of Rs 290.5 crore during the same period last year.

However, this turnaround was on account of a one-time gain of Rs 1,345 crore due to the sale of Paytm's movie ticketing business to Zomato.

"On August 21, 2024, the Company entered into definitive agreements with Zomato Limited for sale of its movie ticketing business and events business housed in the Company as well as its two wholly owned subsidiaries for a total consideration of Rs 2,048 crore which was subject to cash and net-working capital adjustment at closing," Paytm said in a regulatory filing.

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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. Hence, the stock saw selling in early deals.

Paytm's revenue for the quarter declined by 34 percent YoY to Rs 1,660 crore. Sequentially, however, the income increased slightly from Rs 1,501 crore in Q1.

The fintech's net payment margin increased 21 percent 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 percent QoQ, on account of increase in collection bonus in merchant loans due to better asset quality trends, and higher share of merchant loans, Paytm stated in an exchange filing.

At 11:06 am, Paytm shares were trading 3.5 percent lower at Rs 700.50 on the National Stock Exchange (NSE). The stock has risen around 8 percent so far this year, underperforming Nifty's returns of 14 percent.

In the past 12 months, however, the counter has fallen 24 percent. In comparison, Nifty rose 28 percent during this period.

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