Paytm posts profit of Rs 928.3 cr in Q2 on gain from sale of ticketing biz

New Delhi: Paytm recorded a profit of Rs 928.3 crore in the second quarter of FY25 despite a decrease in revenue and cost-cutting measures. One97 Communications, a fintech company that runs the Paytm payments platform, reported a net profit of Rs 928.3 crore for the quarter ending in September 2024. This signifies a major change from a loss of Rs 290.5 crore in the corresponding quarter of the prior financial year, mainly attributed to a one-off profit from the divestment of its entertainment ticketing unit to Zomato.

Paytm Reports Profit Despite 34 pc Revenue Drop, Focuses on Payments Growth

Even after making profit, Paytm experienced a 34 pc decrease in revenue from Rs 2,519 crore to Rs 1,660 crore compared to the same quarter last year. The drop in income is blamed on the persistent difficulties in the fintech industry and the consequences of selling the ticketing business. Paytm successfully cut down its indirect expenses by 17 pc  from the previous quarter to Rs 1,080 crore. This decrease resulted from reduced employee expenses (down 13 pc compared to the previous quarter) and lower marketing costs, along with the lack of one-time expenses in Q1 FY25.

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Paytm experienced a 9 pc quarter-on-quarter growth in payments revenue, reaching Rs 981 crore in the payments segment performance. The increase in Gross Merchandise Value (GMV) of Rs 4.5 lakh crore, up 5 pc QoQ, drove this growth as the company concentrated on monetization and boosting merchant subscriptions. The financial sector also demonstrated encouraging outcomes, with a 34 pc  quarter-on-quarter increase in revenue to Rs 376 crore. 

The company has highlighted its focus on its payments sector and enhancing financial services in order to achieve steady and lucrative growth. Even with a notable drop in revenue, Paytm's impressive profit shows its strength and strategic adjustments in the competitive fintech industry. In the future, the company plans to enhance its primary payment services and seek out opportunities for expansion. 

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