One97 Communications Limited (Paytm) announced its consolidated financial results for the third quarter of FY25, reflecting a mixed performance. While the company showed sequential revenue growth, rising operational expenses and a reported loss weighed on investor sentiment, causing the stock to decline nearly 3% from the day’s high.
Key Financial Highlights (₹ in Crore):
- Revenue from Operations: ₹1,827.8
- YoY: Decline from ₹2,850.5 in Q3 FY24
- QoQ: Increase from ₹1,659.5 in Q2 FY25
- Other Income: ₹188.7
- Up from ₹174.5 in Q2 FY25 and ₹148.6 in Q3 FY24
- Total Income: ₹2,016.5
- YoY: Decline from ₹2,999.1
- QoQ: Increase from ₹1,834
Expenses Overview:
- Total Expenses: ₹2,219.8
- Down from ₹3,216.3 YoY and ₹2,244.8 QoQ
- Payment Processing Charges: ₹570.4 (QoQ increase from ₹516.8)
- Employee Benefits Expense: ₹736.3 (QoQ decline from ₹831)
- Depreciation and Amortization: ₹165.3 (QoQ decline from ₹178.6)
Profitability:
- Loss Before Tax (PBT): ₹(203.5)
- Compared to a profit of ₹1,345.4 in Q2 FY25 and a loss of ₹221 in Q3 FY24
- Net Loss: ₹(208.5)
- Against a profit of ₹930 in Q2 FY25 and a loss of ₹221.7 in Q3 FY24
Nine-Month Performance (April–December 2024):
- Revenue from Operations: ₹4,988.9 (down from ₹7,710.7 YoY)
- Net Loss: ₹(871.8) (improved from ₹(1,422.4) YoY)
Operational Insights:
The sequential growth in revenue reflects operational recovery. However, higher costs in payment processing and marketing coupled with exceptional items contributed to the net loss. The decline in employee benefits costs signals an attempt to optimize expenses.
Stock Performance:
- Previous Close: ₹899.65
- Current Price: ₹878.85 (down by ₹20.80, 2.31%)
- Day Range: ₹894.50 – ₹913.05
- Year Range: ₹310.00 – ₹1,063.00
- Market Cap: ₹568.56B
Despite the revenue recovery, the reported losses and shrinking operational metrics caused a dip in market sentiment, reflecting in the decline of the share price post-announcement.