new Delhi: Vijay Shekhar Sharma, founder and chief executive officer (CEO) of online payments firm Paytm, said in a letter to shareholders on Wednesday that the company would be in the next EBITDA (earnings before interest, tax, depreciation and amortization) break-even operations. can do six quarters.
In the letter, Sharma wrote, “We should expect to conduct an EBITDA breakeven in the next six quarters (ie EBITDA before ESOP costing, and by the quarter ending September 2023), which is well ahead of most analysts’ estimates. Importantly, We are going to achieve this without compromising on any of our growth plans. Against the backdrop of volatile market conditions for high growth stocks globally, our shares are well below the IPO price. Rest assured, complete The Paytm team is committed to building a large, profitable company and creating long-term shareholder value.”
Paytm CEO has also mentioned that the stock grant will be given to him only when the market cap of Paytm crosses the IPO level on an ongoing basis.
According to the letter, the number of loans disbursed through its platform increased by 374 per cent to 65 lakh loans in the March quarter compared to the year-ago period. Meanwhile, the value of loans disbursed stood at Rs 3,553 crore, growing 417 per cent year-on-year (YoY).
The total merchant payment volume (GMV) processed through the platform during the fourth quarter of FY12 was approximately Rs 2.59 lakh crore ($34.5 billion), a year-on-year growth of 104 per cent. The company has also shared that it deploys 1,000 devices per day.
At 1.45 pm on Wednesday, Paytm shares were trading 27 points higher at Rs 636 on the BSE. The stock has lost up to 75 per cent in recent weeks from its IPO price of Rs 2,150.
In the December quarter, Paytm’s revenue grew 89 per cent year-on-year to Rs 1,456 crore, while net loss jumped 45 per cent to Rs 778 crore. However, the company had said that its contribution profit (defined as revenue from operations less payment processing fees, promotional cashback and incentives, and other direct costs) increased from 8.9 per cent in Q3FY21 to 31.2 per cent in Q3FY22.