Paytm Bounces Back: Surprises with Rs 928 Crore Profit

One97 Communications, the parent firm of Paytm, posted a net profit of Rs 928.3 crore for the September 2024 quarter, reversing a Rs 290.5 crore loss from the previous year. This turnaround was boosted by gains from selling its entertainment ticketing business to Zomato, alongside a significant cost reduction.

One97 Communications, the company behind Paytm, has reported a significant turnaround for the quarter ending September 2024, achieving a net profit of Rs 928.3 crore. This marks a stark improvement from the Rs 290.5 crore loss recorded in the comparable quarter last year.

The significant profit was primarily driven by an exceptional gain of Rs 1,345 crore from the sale of its entertainment ticketing business to Zomato. Despite a 34.1 percent year-on-year decline in revenue to Rs 1,659.5 crore, the strategic sale bolstered Paytm's financial standing.

The company credits its focus on payments and the distribution of financial services for steady growth. Paytm reported an increase in payments revenue to Rs 981 crore, up by 9 percent QoQ, and financial services revenue of Rs 376 crore, a rise of 34 percent QoQ. Cost-cutting measures also contributed, with a 17 percent reduction in indirect costs.

(With inputs from agencies.)