Paytm's share price declines as net loss widens in Q2 on higher expense

 

Paytm's share price declines as net loss widens in Q2 on higher expense

Shares in One 97 Communications Ltd, the parent company of Paytm's share NSE 0.20 %, fell as much as 4.6% Monday after the fintech company's net loss for its second quarter widened due to a rise in expenses.

At 10:15 am, Paytm's share were trading 0.1% higher at RS 1,782.95.

In its first earnings report since going public earlier this month, the company said expenses jumped 37.1% over the year ago to RS 1,599 crore and consolidated net loss increased to RS 474 crore from RS 437 crore a year ago.

Its revenue from operations, however, surged 63.6% to RS 1,086 crore for the quarter ended September.

Also Read : Paytm’s earmarks RS 100 crore for marketing campaigns during festive season

“Some of the line items in our payment business are not just profit generating but free cash flow generating,” Founder CEO Vijay Shekhar Sharma said in earnings call for investors on Saturday.

Paytm, which counts China's Ant Group and Japan's SoftBank Group among its backers, raised $2.5 billion this month in India's biggest initial public offering, but made a dismal debut on the stock exchanges. While the stock has recouped some of the losses suffered during the debut, it still remained nearly 21% below its IPO price of RS 2,150.

"I'm looking to sell the shares as soon as the price goes up," said Bansidhar Bhatia from Kolkata, who bought Paytm shares at the issue price.

"I don't see long-term value in the stock and its price is very high compared to the company's business model."

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