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New Delhi [India], October 22 (ANI): One97 Communications owned payments and financial services distribution company, Paytm has reported robust financial results for Q2FY25, with revenue growing by 11 per cent quarter-on-quarter (QoQ) to Rs 1,660 crore. The company also saw significant improvements in profitability, with EBITDA rising by Rs 388 crore QoQ to Rs 404 crore, and EBITDA before ESOP improving by Rs 359 crore to Rs 186 crore. Paytm posted a Profit After Tax (PAT) of Rs 930 crore, largely due to a one-time exceptional gain of Rs 1,345 crore from the sale of its entertainment ticketing business.
Also Read | RG Kar Hospital 'Financial Irregularities' Case: CBI Sends 4 Hard Disks to Chandigarh CSFL for Examination To Retrieve Deleted Data. The company's core businesses of payments and financial services distribution continued to drive growth. Payments revenue increased by 9 per cent QoQ to Rs 981 crore, while revenue from financial services surged 34 per cent to Rs 376 crore.
Paytm also made strides in reducing costs, with indirect expenses down by 17 per cent QoQ, driven by lower employee costs and marketing expenses. In a key development, Paytm announced the adoption of the Default Loss Guarantee (DLG) model for merchant loans, signalling increased demand from merchants and higher confidence from lending partners. This model is expected to expand lending partnerships and boost loan disbursements.
Also Read | Bengaluru Shocker: Brother-Sister Suspected To Have Drowned in Kengeri Lake, Search Operation Underway To Recover Bodies (Watch Video). "There is increased interest and comfort from existing as well as new lenders to expand the partnership due to better asset quality trends and higher demand from our merchants. Following the regulatory framework, and the emerging market practice, we see increased willingness from lenders to partner and allocate more capital in the Default Loss Guarantee (DLG) model.
DLG model will help to increase disbursements with the existing partners and expand partnership with new lenders for the loan distribution," said the company in its earnings release. Paytm closed the quarter with a strong cash balance of Rs 9,999 crore, further enhancing its financial position. (ANI) (This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body).
