Paytm shares drop 3% after Q4 results. Should You buy or sell?
economictimes.indiatimes.comPaytm fell 3% to Rs 358.3 in Thursday's trade on the BSE, a day after the company announced its Q4 results. Paytm released its Q4 earnings early on Wednesday, and the stock closed 5% higher later that day following the announcement.
Paytm's losses widened to Rs 550 crore in the fourth quarter ended March 2024. The same stood at Rs 169 crore in the last year quarter.
Meanwhile, its revenue from operations in the reporting quarter fell 3% year-on-year (YoY) to Rs 2,267 crore, compared with Rs 2,334 crore in the same quarter of the previous year.
The company's fourth-quarter results were impacted by temporary disruptions on account of the UPI transition and permanent disruption because of the Paytm Payments Bank embargo.
Pursuant to the RBI’s actions on Paytm Payments Bank (PPBL), Paytm terminated its nodal accounts being maintained with PPBL. Subsequently, Paytm discontinued all major business activities with PPBL and has also made amendments to the shareholders' agreement with PPBL by simplifying the terms while also withdrawing its nominee director from the board of PPBL, stated the company filing to the exchanges.
Considering the future uncertainties associated with the business operations of the payments bank business, Paytm has recorded an impairment provision of Rs 227 crore representing the carrying value of its investment in PPBL as an impairment of investment in its Q4 results.
“We expect near-term financial impact to our revenue and profitability, due to disruptions faced in our business in Q4. This
