Paytm Q2FY25 result: Consolidated net profit at Rs 930 cr; revenue down 34%

Paytm Q2 results: The company's net profit was boosted by a one-time gain of Rs 1,345 crore from the sale of its movie ticketing business to Zomato

Paytm parent One 97 Communications Ltd on Tuesday reported a consolidated net profit of Rs 930 crore for the second quarter ending September 30. The company had reported a net profit of Rs 290 crore in the same quarter of the previous year, according to its BSE filing.

The company’s net profit was significantly boosted by a one-time gain of Rs 1,345 crore from the sale of its movie ticketing business to Zomato.

Revenue from operations for Q2FY25 stood at Rs 1,659 crore, compared to Rs 2,518 crore year-on-year (Y-o-Y), marking a 34 per cent decline.

Paytm’s Gross Merchandise Value (GMV) grew by 5 per cent sequentially in the September quarter. The management anticipates further acceleration in GMV growth this quarter, driven by the festive season.

The company stated, “In addition to the focus on GMV, we were able to significantly improve payment processing margin.”

Paytm has partnered with brands like Meesho, Coca-Cola, Mondelez, and Dabur for Soundbox Ads. In its post-earnings report, Paytm revealed that new subscription-based merchant sign-ups for devices have exceeded January 2024 levels. The company plans to continue reactivating merchants and reallocating inactive devices to new merchants over the next two to three quarters.

Paytm has also offered a Default Loss Guarantee to its lending partner, SMFG India Credit Company, which disburses loans to Paytm’s merchants. As part of its lending business, Paytm assists its lending partners in distributing loans to customers and earns a fee for sourcing and collecting on these loans.

The company has provided a Default Loss Guarantee of up to Rs 225 crore on loans issued by its lending partners to merchants, which will be accounted for as a financial expense over time.