New Delhi: India’s leading fintech company PayTM’s parent company One97 Communications reported its first profitable quarter since listing in 2021, with a profit of Rs.123 crore as against a loss of Rs. 839 crore from last year. The company’s total revenue jumped 28% year-on-year to Rs.1,918 crore from Rs.1,502 crore last year. This gain has ben attributed to its highly successful financial services vertical, where revenues have increased by 100% YoY due to growth in merchant loans and improved collection performance.
The company has been India’s first fintech player, which pioneered the cashless payment ecosystem. The company had been struggling in the red after its blockbuster IPO in 2021, which valued the firm at Rs.18,300 crore. In June 2024, the company sold its movie ticketing business to Zomato for Rs.2,048 crore, giving the company a one-off net profit that didn’t reflect its operational weaknesses.
To narrow down its losses, the company has been keeping a tight lid on expenses, including marketing and employee costs. This corresponded to a 19% reduction in expenses from Rs.1,301 crore to Rs.1,049 crore.
The company’s merchant subscriptions reached an all-time high of 1.30 crore, a 21% YoY increase, due to better service and high-quality devices.
In anticipation of its results, the company’s shares have gained almost 5% last week. After its -9.30% losses immediately after listing, the company’s valuations have been quite volatile, with its one-year high at Rs.1,062.95 and its low at 437.25 in 2024. After the announcement, One97 Communications prices rose by 3.25% on July 22.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
