New Delhi: Fintech company Paytm has presented the results of the second quarter of the financial year 2024-25. Vijay Shekhar Sharma's company made a profit of Rs 930 crore in the July-September quarter. Paytm was in loss in the same period a year ago. However, despite this remarkable achievement, the shares of Paytm's parent company One97 Communications saw a jump of more than 7 percent during early trading.

Paytm performance in the second quarter

Paytm's operational revenue during the second quarter stood at Rs 1,659.5 crore. This is 34 percent less than a year ago. Paytm's loss before tax also increased from Rs 273.3 crore to Rs 406.5 crore on an annual basis.

However, during this quarter, Paytm sold its ticketing business to Deepinder Goyal's food delivery platform Zomato. This deal gave Paytm an extraordinary profit of Rs 1,345.4 crore. Due to this, Paytm's profit before tax increased to Rs 938.9 crore. This is much better than the loss of Rs 279 crore in the same period last year.

Paytm customer base

Paytm has started reporting the number of its major financial service customers. The company said that 6 lakh customers availed financial services during the second quarter. This is more than 5,90,000 in the previous quarter. Paytm's merchant membership reached 11.2 million by September 2024.

Gross merchandise value (GMV) for the quarter stood at Rs 4.5 trillion, up 5 per cent quarter-on-quarter. According to Paytm, it has managed to significantly improve its payment processing margin. The company expects it to be in the range of 5-6 basis points for the full year.

Why did Paytm shares fall?

The second quarter financial results for Paytm were quite positive. The company has moved towards profitability. It has improved its financial metrics. But, the reaction of investors in the stock market shows that their attitude is still quite cautious towards the company. Especially in view of the declining revenue from the company's operations and previous regulatory challenges.

After the results, Paytm shares slipped by 7 percent. However, later it showed recovery. By 1.15 pm, Paytm shares were trading at Rs 697.60, down 3.91 percent. In the last one year, investors have suffered a loss of about 25 percent from Paytm. But, in the last 6 months, it has given a return of 85 percent.