Paytm’s Parent Company Reports Profitability
One 97 Communications Ltd., the parent company of the popular payments service provider Paytm, has achieved profitability in the quarter that ended in June. The financial results, which were announced by the company on Tuesday, revealed a significant milestone for the organization.
Key Financial Highlights
This marks the first time that Paytm’s parent company has recorded a net profit in a quarter since its listing in November 2021. The company reported a net profit of Rs 122.5 crore, a notable turnaround from the net loss of Rs 540 crore in the previous quarter.
Despite experiencing flat revenue from operations at Rs 1,918 crore compared to the previous quarter, the company’s performance saw positive indicators. Paytm’s earnings before interest, taxes, depreciation, and amortization (Ebitda) turned positive at Rs 71.5 crore, a significant improvement from the Rs 88.6 crore loss in the previous quarter.
Factors Driving Profitability
According to the company, the positive Ebitda and net profit were a result of “AI-led operating leverage, disciplined cost structure, and higher other income.” Furthermore, revenue from the company’s distribution of financial services witnessed a substantial 100% year-on-year surge to Rs 561 crore.
This growth was attributed to increased merchant loans, trail revenue from default loss guarantee portfolio, and enhanced collections practices. The company also reported a notable reduction in marketing expenses, which were down by 65% year-on-year at Rs 62 crore, and a significant decrease in employee stock ownership cost by 88% year-on-year to Rs 30 crore.
📌 Also Read:
- The Evolution of Family Businesses in India
- Milky Mist Dairy Food Ltd. Files Rs 2,035 Crore IPO
- Monarch Surveyors IPO: Latest GMP Rises To 66% As Issue Fully Subscribed On Day 1