Paytm parent One 97 Communications' shares gain 6%; stock rallies 15% in 1 week

On Tuesday, One97 Communications (OCL) said Paytm users will be able to make UPI payments at select international locations, including popular spots in the UAE, Singapore, France, Mauritius, Bhutan, and Nepal.

The move allows users to conveniently pay for all use cases, including shopping, dining, and local experiences abroad, using UPI through their Paytm app, the company's release added. 

"With the upcoming holiday season, we are sure that this launch will make foreign travel even more convenient for users. This expansion reflects our commitment to leveraging technology that empowers our users, wherever they are in the world," a Paytm spokesperson said.

For the quarter ended September 30, 2024 (Q2 FY25), One97 Communications posted a net profit of ₹928.3 crore as compared to the ₹290.5 crore loss it incurred a year ago, as an exceptional gain from the sale of the entertainment ticketing business to Zomato improved the fintech firm's Q2 scorecard.

The revenue from operations slumped 34.1% year-on-year to ₹1,659.5 crore during the just-concluded quarter.

For Q2FY25, Paytm reported a profit after tax (profit attributable to owners of parent) of ₹928.3 crore. This included an exceptional gain of ₹1,345 crore on account of the sale of the entertainment ticketing business, Paytm said in its earnings statement.

"The company believes that the continued focus on payments and distribution of financial services will drive sustained, profitable growth. The same is reflected in its growing revenue for the payments business of ₹981 crore, up 9% QoQ, and revenue from financial services at ₹376 crore, up 34% QoQ," it said.

The company's indirect cost has come down by 17% sequentially to ₹1,080 crore due to reductions in employee costs (down 13% QoQ), marketing expenses, and the absence of certain one-time expenses incurred in Q1 FY 2025.