Paytm Share: on Friday said profitability and revenue will start improving from the second quarter due to better cost management, sending its shares surging even as it posted its biggest quarterly loss since going public in 2021. The digital payments firm, impacted by the shutdown of its payments banking unit earlier this year, expects operational metrics including gross merchandise value and merchant device additions to improve and employee costs to reduce from July-September. Shares of Paytm, which had fallen nearly 3% ahead of the results, turned positive with a gain of 2%. “Operational metrics such as gross merchandise value and merchant loans are improving. The worst-case scenario has been evaluated and hence better stock performance should be seen as the results come in,” said Rahul Jain, vice president of research at Dolat Capital. Paytm’s consolidated net loss widened to Rs 8.39 billion ($100.3 million) for the quarter ended June 30, compared with a loss of Rs 3.57 billion a year earlier. Earlier in the year, the Reserve Bank of India shut down Paytm Payments Bank due to persistent compliance issues, sending Paytm shares tumbling. The restrictions also led to several lending partners halting lending through the company’s platform, leading to a 1.4% sequential decline in loans during the current quarter. Paytm’s EBITDA before the cost of employee stock options for the June quarter stood at negative Rs 5.45 billion, broadly in line with its earlier estimate of Rs 5 billion-Rs 6 billion. Revenue from operations fell 36% to Rs 15.02 billion in April-June, in line with the company’s estimate of Rs 15 billion-Rs 16 billion.
