Paytm posts Rs 930 crore profit in Q2 driven by Zomato sale
The company's profitability was primarily driven by a one-time gain of Rs 1,345.4 crore from the sale of its movie ticketing and events businesses to Zomato Limited.
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One 97 Communications Ltd, the parent company of digital payments giant Paytm, reported a significant turnaround in its financial performance for the second quarter ended September 2024. The company posted a profit of Rs 930 crore during the period, a stark contrast to the Rs 290 crore loss recorded a year ago.
The company's profitability was primarily driven by a one-time gain of Rs 1,345.4 crore from the sale of its movie ticketing and events businesses to Zomato Limited. Excluding this exceptional item, Paytm's core operations continued to be in the red, with a loss of Rs 495 crore.
While the company's overall revenue from operations declined by 34% year-on-year to Rs 1,659 crore, it saw a slight increase from the Rs 1,501 crore reported in the previous quarter.
The sale of the ticketing businesses to Zomato was part of Paytm's strategy to focus on its core payments and financial services businesses. While the transaction provided a much-needed boost to the company's bottom line, the underlying challenges in its core operations remain evident.
