 "Paytm rallies 9% on partnership with Samsung; stock up 28% in one month")
Shares of Paytm’s parent company One 97 Communications rallied 8.9 per cent at Rs 438.95 per share on the BSE in Thursday’s intraday deals.The stock has gained 27.6 per cent in the last one month, while gaining 41 per cent from its 52-week low of Rs 310 that the stock hit on May 05, 2024. However, it's still down 56 per cent from its 52-week high of Rs 998 that the stock reached on October 20, 2023.
The recent surge in stock price came after the company on Thursday, revealed that it has partnered with Samsung to bring travel and entertainment services to Samsung wallet in India. This will allow Samsung wallet users to have seamless access to Paytm’s flight, bus, movie and events booking services, the company said in an exchange filing.
“Galaxy smartphone users using the Paytm app for flight, bus and movie bookings and the Paytm Insider app for event booking, will be able to add their tickets directly to Samsung Wallet using ‘Add to Samsung Wallet’ functionality,” the company said in a statement.
This comes after the top insurance regulator IRDA accepted Paytm’s withdrawal application as general insurance manufacturer. The payments platform’s subsidiary will now stick to distributing insurance products through its subsidiary, Paytm Insurance Broking.
“The move aligns with our focus towards doubling down on insurance distribution across Health, Life, Motor, Shop & Gadgets segments, facilitated through our wholly owned subsidiary, Paytm Insurance Broking Private Ltd. (PIBPL). We aim to innovate on small ticket insurance products for consumers and merchants alike, by focusing on small-ticket general insurance offerings along with our partners,” the company said in a statement on Wednesday.
Paytm reported a net loss of Rs 550 crore in the fourth quarter of fiscal year 2023-24 (Q4FY24), marking a three fold jump as against the same quarter in the previous year. This surge in losses was attributed to impact on margins following the Reserve Bank of India's ban on its associate company in January, Paytm Payments Bank (PPBL).
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The revenue from operations witnessed a year-on-year decline of 2.9 percent, amounting to Rs 2,267 crore in Q4FY24, as opposed to Rs 2,334 crore recorded in the same period last year.
Additionally, compared to the previous quarter, the company's revenue experienced a notable decrease of 20 percent.
At 10:44 PM; the stock of the company was trading 5.51 per cent higher at Rs 424.85 per share on the BSE. By comparison the BSE Sensex climbed up by 0.30 per cent.