Paytm Q4: Vijay Shekhar Sharma, Founder and CEO, One97 Communications said: Paytm In a filing with exchanges on Wednesday morning, Esop seeks to conduct EBITDA breakeven (Ebitda before cost) by the end of September 2023.
In a letter to shareholders, announcing his last quarter results, Sharma said against the backdrop of volatile market conditions for high-growth stocks globally, share of paytm Well below the IPO price.
Paytm had offered Rs 2150 per share to the public at a market valuation of Rs 1.39 lakh crore. The stock has been on a downtrend since listing in November 2021 and has fallen over 70 per cent with market capitalization falling to Rs 41,000 crore.
BSE had recently sought an explanation from Paytm on the steep fall in its share price. Shares of the company fell on higher interest rates, confusion about Paytm’s path to profitability and declining investor interest for loss-making growth companies in the light of recent regulatory actions against the company.
Brokerage firm Macquarie said in a recent note, “Dubbing across multiple business lines prevents Paytm from being a category leader in any business except wallets, which are becoming irrelevant with the meteoric rise in UPI payments. “
Sharma assured investors that the entire Paytm team is committed to building a large, profitable company and creating long-term shareholder value. However, experts suggest otherwise.
Santosh Meena, Head of Research, Swastika Investmart Ltd said: “One of the biggest asset destroyers, Paytm is attracting some buying interest amidst a lot of negativity in the 500-600 sector. Some investors find it attractive at current levels because of its brand value, although there is still uncertainty about the timing of its profitability with no lead in a particular business. We are expecting some recovery in this counter on account of bargaining where we can expect 770/870 levels in the coming days, however conservative investors should totally avoid this stock.”
The CEO of fintech major Paytm also said that they will be granted their employee stock options (ESOPs) only when the company’s market capitalization crosses the level it was during the initial public offering.
The firm had given ESOPs to Sharma for the first time since the company’s inception in September 2021.
One97 Communications (Paytm) Q4 Update
Business scales to 6.5 million loan disbursements during the quarter, taking the total loan value during the quarter to Rs 3,553 crore ($474 million) (an increase of 417 per cent year-on-year). The offline payments business accelerated with 0.9 million devices deployed in the quarter. The total number of deployed devices increased to 2.9 million. Average Monthly Transaction Users (MTU) of Paytm Super App for the quarter grew by 41 per cent year-on-year to 70.9 million. The GMV for the quarter increased by Rs 2.59 lakh crore ($34.5 billion) year-on-year, the company said in an exchange filing.
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