Following the release of its financial results for the first quarter of FY 2025, One 97 Communications, the parent company of the Paytm brand, has seen an increasing trend in the broader trend where the stock prices of domestic technology majors are down by 2-2.7 percent.
Paytm’s share price is currently trading at Rs 451, up 1.13 percent from the day’s opening. One 97 Communications’ shares ended the day on Thursday at Rs 445.30 a share.
Nevertheless, the stock prices of Zomato and PB Fintech, two of its technological competitors, dropped by about 2% and 3%, respectively, to Rs 216 and Rs 1,412 per share.
On Friday, Paytm revealed its quarterly financial results. It showed operating revenue of Rs 1,502 crore, a loss on Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) of Rs 792 crore, and a net loss of Rs 840 crore.
The company’s Q1 FY2025 financial results show the full impact of the recent disruptions.
Along with continuous emphasis on cost optimization, the company also predicted improved revenue and profitability due to rise in merchant payment operating KPIs, such as GMV, faster merchant reactivation, and a rising merchant base.
The merchant subscriber base has increased to 1.09 crore as a result of the company’s acceleration of merchant reactivation and new sign-ups, with new merchant sign-ups and daily GMV returning to levels seen in January. It stated that the customer base has stabilized at 7.8 crore, with an increase in GMV per client.
With Rs 8,108 crore in cash on hand, the company’s balance sheet is solid. Additionally, it has the right to purchase stock in PayPay Corporation (up to a 5.4% interest, if exercised).
