[ad_1]
Shares of Paytm declined significantly in recent times due to volatile market conditions for high growth stocks, the company’s CEO Vijay Shekhar Sharma said on Wednesday.
Sharma, the founder and CEO of One97 Communications that operates under the brand Paytm, also said the company expects to be breakeven in terms of operating EBITDA in the next six quarters.
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation. In a letter to shareholders of the company, Sharma said the shares are down significantly compared to the IPO price due to volatile market conditions for high growth stocks globally.
It came out with the Initial Public Offering (IPO) late last year and the issue price was Rs 2,150 per share. However, the scrip has taken a beating on the bourses in recent times and even touched an all-time low of Rs 520 apiece.
In morning trade on BSE on Wednesday, shares of Paytm rose 3 per cent to Rs 627.85 apiece. Sharma, in the letter, also said the company was encouraged by the business momentum.
“While we will publish our fiscal 2022 financial results in due course, we are encouraged by our business momentum, the scale of monetisation and operating leverage.
“We expect this to continue, and I believe we should be operating EBITDA breakeven in next 6 quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023), well ahead of estimates by most analysts. Importantly, we are going to achieve this without compromising any of our growth plans,” Sharma said.
He said that the entire Paytm team is committed to build a successful, profitable company and create long-term shareholder value. “Aligned with this, my stock grants will be vested to me only when our market cap has crossed the IPO level on a sustained basis,” he said.
Sharma also spoke of building a strong leadership team at Paytm.
“I am proud of the talent that we have in our company and our culture of being ambitious and entrepreneurial. We continue to expand our team with great talent from both the technology and finance industries,” he wrote.
In a regulatory filing, Paytm shared that its loan disbursals grew by more than fourfold to 65 lakh loan disbursals in the March 2022 quarter from 1.38 million loans it recorded in the same period a year ago.
The number of loans disbursed on an annual basis increased by more than five times to 15.2 million in the March 2022 quarter from 2.6 million in the year-ago period.
In value terms, the loan disbursal on the company’s platform grew by over fivefold to Rs 3,553 crore in March 2022 quarter from Rs 687 crore a year ago.
For the full FY22, Paytm loan disbursal in value terms grew over fivefold to Rs 7,623 crore from Rs 1,409 crore at the end of 2020-21.
Paytm’s gross merchandise value (GMV) grew to Rs 2.59 trillion in March 2022 quarter from Rs 1.27 trillion a year ago.
On an annual basis, the GMV of Paytm more than doubled to Rs 8.52 trillion in 2021-22 from Rs 4.03 trillion in 2020-21.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link