*Will achieve EBITDA breakeven in next six quarters: Paytm CEO – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/todays-paper/tp-news/will-achieve-ebitda-breakeven-in-next-six-quarters-paytm-ceo/article65297675.ece

Vijay Shekhar Sharma CEO, Paytm

Vijay Shekhar Sharma CEO, Paytm

Seeks to assuage shareholders’ fear as stock plunges

Paytm expects to achieve EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) breakeven in the next six quarters. This would be achieved without compromising on any of its growth plans, the fintech’s founder and Chief Executive Officer Vijay Shekhar Sharma said.

In a letter to its shareholders, which was filed with the bourses, Sharma also said the Paytm team is committed to building a successful, profitable company and creating long-term shareholder value.

The company’s stock has nosedived about 70 per cent from its IPO issue price of Rs. 2,150 in November 2021.

Creating shareholder value

“Against the backdrop of volatile market conditions for high growth stocks globally, our shares are down significantly from the IPO. Rest assured, 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,”Sharma said in the letter.

Analysts point out that this would mean that Sharma would get stock grants only when the Paytm stock moves up 360 per cent from its current levels of Rs. 595.

Q4 performance

Paytm recorded robust business growth in the last quarter of 2021-22, according to a business update shared with the exchanges. The number of loans disbursed during the quarter grew 374 per cent year-on-year to 6.5 million, with a value of Rs. 3,553 crore, a year-on-year growth of 417 per cent.

Meanwhile, the Gross Merchandise Value (GMV) for the quarter under review grew 104 per cent to Rs. 2.59 lakh crore ( Rs. 1.27 lakh crore). In the December 2021 quarter, the GMV had touched Rs. 2.50 lakh crore.

“We saw strong quarter-on-quarter trends, despite the previous quarter being impacted by the festive season,” the company said in the update.

For the entire fiscal 2021-22, Paytm clocked a GMV of Rs. 8.52 lakh crore, up 111 per cent over the GMV of Rs. 4.03 lakh crore in the previous fiscal.

High user engagement

The Paytm Super App has seen record growth in user engagement, with the average monthly transacting users (MTU) for the quarter growing 41 per cent year-on-year to 70.9 million.

It continues to lead in the offline payments business, with the total number of devices deployed growing to 2.9 million.

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