Paytm Swings to Profit: A New Chapter in Fintech Success
Paytm, a brand under One97 Communications, achieved its first consolidated net profit of Rs 122.5 crore in Q1 due to cost optimization and growth in payment revenue. This marks a turnaround from a net loss of Rs 840 crore last year, signaling strong potential in digital stocks.
- Country:
- India
In a significant milestone for the fintech industry, One97 Communications, the parent company of Paytm, reported its first-ever consolidated net profit of Rs 122.5 crore for the June quarter. This marks a stark contrast from the Rs 840 crore net loss posted in the corresponding period last year, underscoring a strategic shift in cost optimization and revenue growth.
Paytm's shares experienced a notable recovery, initially dropping 3.15 per cent to Rs 1,019.35 before bouncing back to close with a 1.74 per cent gain at Rs 1,070.95 on the BSE. The company's market valuation soared by Rs 1,190.98 crore to reach Rs 68,357.65 crore, highlighting investor confidence.
Commenting on the results, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted the impressive potential of digital stocks. Paytm's performance, characterized by AI-led operating leverage and disciplined cost structure, positions the company for sustained growth in the evolving fintech landscape.
(With inputs from agencies.)
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