New Delhi:
Online services provider Paytm recently disclosed its fourth-quarter performance, indicating a significant downturn in its financials.
Losses and Declining Income
During the January-March quarter of the fiscal year 2023-24, Paytm reported a substantial loss of Rs 550 crore, a stark contrast to the Rs 160 crore loss in the same quarter the previous year.
The company’s income also plummeted, with a 3 percent decrease compared to the corresponding period in the previous fiscal year, dropping from Rs 2,334.5 crore to Rs 2,267.1 crore.
Impact on Paytm Share
The release of the disappointing results immediately impacted Paytm’s share prices, causing a decline as soon as the stock market opened.
The stock of Paytm’s parent company, One97 Communication, dropped by about 2 percent, with the market cap reducing to Rs 22040 crore.
Full-Year Performance
Despite the dismal quarterly results, Paytm’s consolidated net loss for the entire fiscal year 2023-24 narrowed down to Rs 1,422.4 crore from Rs 1,776.5 crore in the previous fiscal year.
However, there was a positive increase in Paytm’s revenue from operations, which rose by 24.9 percent to Rs 9,977.8 crore from Rs 7,990.3 crore.
RBI Ban’s Influence
Paytm acknowledged that the Reserve Bank of India’s (RBI) ban on its banking unit, Paytm Payments Bank (PPBL), had an adverse impact on its operations.
The RBI had imposed restrictions on PPBL on January 31, including limitations on accepting additional deposits and credit transactions, due to prolonged non-compliance issues.
Stock Performance Analysis
In the last quarter, Paytm’s share price experienced a significant decline, dropping from Rs 646.10 on January 1, 2024, to around Rs 390 on March 28, following the RBI’s actions.
Over the past year, the stock has plummeted by more than 51 percent, and in the last six months alone, it has fallen by up to 62 percent.
