Shares of Paytm's parent company, One 97 Communications, saw a decline of up to 4% on October 22, 2024, despite reporting a Rs 930 crore net profit for the second quarter of FY25. The market reaction was primarily influenced by the fact that the reported profit was largely driven by a one-time gain, leaving investors unimpressed.
While Paytm achieved profitability, the market's focus was on the company's underlying performance, which showed a significant loss without the one-time gain. This led to selling pressure on the stock. The company’s revenue decline and its dependence on one-time gains to report profits raised concerns about its operational strength.
As Paytm moves forward, the company will need to focus on improving its core business operations to sustain investor confidence, particularly given its underperformance compared to the broader market.
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