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Paytm shares sees 5% drop amid potential block deal

Shares of Paytm‘s parent company, One 97 Communications, dropped more than 5% to Rs 877.15 on the NSE after reports of a block deal. Around 9:45 am, over 1.78 crore shares changed hands in a block deal worth Rs 1,441 crore.

Despite being a multibagger, Paytm’s stock experienced a 5% correction amid high volumes. Over the last 12 months, the stock provided a 104% return, outperforming Nifty50, which had an 8% return.

Paytm’s improved earnings contributed to its positive performance. The fintech giant reduced its losses to Rs 290 crore in the quarter ending September 2023, compared to Rs 357 crore in the preceding quarter and Rs 571 crore in the same period last year.

During the reporting period, revenue from operations rose by 32% YoY to Rs 2,519 crore, up from Rs 1,914 crore a year ago. EBITDA (before ESOPs) increased to Rs 153 crore in the second quarter, compared to Rs 84 crore in the first quarter.

The contribution profit for the quarter grew by 69% YoY to Rs 1,426 crore, with a contribution margin of 57%. In the payments business segment, revenue increased by 28% YoY to Rs 1,524 crore, while net payment rose by 60% YoY to Rs 707 crore. The gross merchandise value (GMV) from the payments segment surged 41% YoY to Rs 4.5 lakh crore.

In the loan distribution business, revenue from financial services and others increased by 64% YoY to Rs 571 crore. The number of unique users taking loans through the Paytm platform reached 1.18 crore, with loan disbursals growing by 122% YoY to Rs 16,211 crore.

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