Paytm Share Price Dips 5% Despite 11% QoQ Rise in Revenue in Q2 FY 2025 Earnings

On October 22, 2024, One 97 Communications Limited, known as Paytm, announced its financial results for the quarter ending September 30, 2024. Following the announcement, the Paytm share price drew significant attention.

In terms of financial performance, Paytm reported an operating revenue of ₹1,660 crore, reflecting an 11% increase quarter-on-quarter (QoQ). The company recorded a profit after tax (PAT) of ₹930 crore, which includes an exceptional gain of ₹1,345 crore from the sale of its entertainment ticketing business to Zomato Limited. This transaction not only bolstered the company’s revenue but also significantly enhanced its cash reserves, which stood at ₹9,999 crore at the end of the quarter, compared to ₹8,108 crore in the previous quarter.

Capital expenditures (Capex) for the first half of FY 2025 amounted to ₹97 crore, a significant decrease compared to ₹477 crore in H1 FY 2024 and ₹336 crore in H2 FY 2024. This reduction is largely attributed to a decrease in device costs, the adoption of refurbished devices for redeployment, and fewer deployments overall.

The sale of the entertainment ticketing business has not only provided a substantial cash influx but also served to strengthen Paytm’s balance sheet considerably. 

On October 22, 2024, Paytm share price opened at ₹727.00, showing a slight increase from the previous close of ₹725.95. However, by 11:44 AM, the share price of Paytm had dipped to ₹689.65, representing a decline of 5%. 

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