Paytm share price slips 5% post Q2FY25 results; Check details

Paytm reported an exceptional item gain of Rs 1,345.4 crore from the sale of its ticketing business to Zomato during the quarter

Paytm shares lost 5.1 per cent in Tuesday's intraday trade on the BSE after the company posted its second quarter (Q2) results for financial year 2024-25 (FY25). At around 11:15 AM, Paytm shares were down 2.58 per cent at Rs 707.25 per share. In comparison, the BSE Sensex was down 0.17 per cent at 81,013.65 at around the same time. The market capitalisation of the company at around the same time stood at Rs 44,507.61 crore. 

The stock was down as the payment platform 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.

On August 21, 2024, Paytm entered into definitive agreements with Zomato 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.

The transaction resulted in a gain of Rs 1,345.4 crore, which was reported in the financials as an "exceptional item", resulting in Paytm's financial turnaround into profitability.

Otherwise, Paytm reported a loss before exceptional items and tax widened to Rs 406.5 crore as compared to Rs 273.3 crore a year ago.

With addition to exceptional gains, Paytm reported a profit before tax at Rs 938.9 crore, as compared to a loss of Rs 279 crore in the year ago period.

Meanwhile, its net profit for the quarter stood at Rs 930 crore, from a loss of Rs 291.7 crore in the year-ago quarter.

The company also incurred a decline in revenue from operations at Rs 1,659.5 crore, down 34 per cent year-on-year (Y-o-Y) from Rs 2,518.6 crore. 

The company, in its filing,said that starting this quarter, it has started disclosing the number of key financial services customers. 

It added: For the next couple of quarters, we will continue to report the value of loans disbursed, but over time, the relevant metrics will be the number of key financial services customers (consumer and merchant) and revenue from financial services. 

During Q2 FY 2025, 6 lakh key financial services customers availed financial services through Paytm, as compared to 5.9 lakh during Q1 FY 2025.

Its gross merchandise value (GMV) stood at Rs 4.5 trillion, up 5 per cent quarter-on-quarter (Q-o-Q). 

"In this quarter, in addition to focusing on the growth of GMV, we were able to significantly improve the payment processing margin. We continue to expect Payment processing margin (including UPI incentive) to be in the range of 5-6 bps for the year," the company said in its filing. 

As of September 2024, merchant subscriptions stood at 11.2 million. 

In the past one year, Paytm shares have lost 21.3 per cent against Sensex's rise of 26 per cent.