As shares of One 97 Communications, the parent Firm of Paytm, rose after the company's December quarter earnings performance, Zomato CEO (Chief Executive Officer ) Deepinder Goyal congratulated Paytm founder Vijay Shekhar Sharma on Twitter.
The message of support comes after a tough 2023 for Paytm where its stock had dipped to a yearly low of Rs 441 in the month of November.
Deepinder Goyal mentioned that he was working on improving Zomato's margins.
Paytm' stock rose as much as 7.4% yesterday, its biggest intraday jump in two months after the firm posted its first-ever quarterly operating profit as a listed firm.
Paytm posted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $3.8 million for Q3, nine months ahead of its target of September 2023.
"This was mainly on the back of rising mix of high-margin lending revenue, improving merchant subscription, reducing payment processing and promotional charges," BofA Securities analysts said in a note.
There have been doubts over the ability of the company to turn profitable ever since its IPO (initial public offer), still India's biggest ever share sale, in November 2021.
The fintech firm had seen a 75% decline in its share price since the IPO.
Congratulations, @vijayshekhar and @Paytm on becoming profitable.— Deepinder Goyal (@deepigoyal) February 7, 2023
Sorry, a bit late to the party – was so busy working on our own profitability ;-)
Although Paytm still posted a net loss for the December quarter, it nearly halved as a result of growing demand for BNPL (buy-now-pay-later) loans.
Paytm had reported a 41.6% rise in Q3 revenue on Friday.
At close, Paytm's stock was up 5.5% at Rs 589.30 on the NSE.