Shares of One 97 Communications Ltd, which operates Paytm, slumped 4% on 19 July after the company announced its quarterly earnings for the April-June quarter. 

Paytm’s loss during the quarter widened to Rs Rs 839 crore from Rs 357 crore net loss it had reported in the same quarter during the previous fiscal year. Loss widened as the company tried to cope with the impact of the RBI curbs shutting the payments bank business. 

The revenue from operations of fintech during the quarter stood at Rs 1,502 crore, marking a 36% year-on-year decline from Rs 2,342 crore reported in the corresponding quarter of the previous fiscal year. 

From the revenue of operations of Rs 1,502 crore, the payments business contributed Rs 900 crore whereas Rs 280 crore came from financial services while the rest was contributed from marketing services.

In its filing, the company added, “Going forward, we expect revenue and profitability to improve, driven by growth in operating parameters such as GMV, an expanding merchant base, recovery in loan distribution business and continued focus on cost optimization.”

Earlier in January, the Reserve Bank of India (RBI) issued crippling restrictions on the company’s associated entity, Paytm Payments Bank Limited (PPBL). 

To cover for the growing losses, the company had taken up an aggressive plan to save Rs 400-500 crore annually on employee costs. 

However, at 12:41 pm, Paytm’s shares were trading 4.36% higher at Rs 464.70 on NSE.