Paytm CEO Vijay Shekhar Sharma: Paytm Founder and CEO Vijay Shekhar Sharma wrote in a letter to his shareholders that the fintech company is committed to becoming profitable and is confident that its operating EBITDA will breakeven in the next six quarters.
Paytm’s Sharma said, “Business momentum, increased monetization and operating leverage will boost our enthusiasm when we publish FY22 results in due course. We expect this to continue and I am confident that the company will break even in terms of operating EBITDA in the next six quarters. This will happen much earlier than analysts have predicted. The important thing is that we are going to do this without compromising on our growth plans.”
The company released the March quarter business update
Sharing an update on its operating performance for the quarter ended March 2022, Paytm said that in the fourth quarter, the company disbursed over 65 lakh loans, an increase of 374 per cent from 44 lakh in the previous quarter. The value of these loans was Rs 3,553 crore.
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Paytm shares up 5 percent
Paytm had a weak debut in the stock market in November last year. The company’s stock has fallen to less than half of its issue price, with analysts constantly raising concerns about its valuation. However, on Wednesday, Paytm’s parent company One 97 Communications closed at Rs 640 with a gain of 5 per cent.
“Due to the high volatility in the market for high growth stocks, our shares have come down significantly below the IPO price. Trust me, the entire Paytm team is committed to building a large, profitable company and creating long turn shareholder value. Also, I will get stock grants only when our market cap crosses above IPO level on a permanent basis.”
What are stock grants
A stock grant is a reward given to an individual for achieving a goal or for better performance. These are usually given to demonstrate loyalty. These are much like stock options available to employees. These have a waiting period attached to them, after which the employee or executive can exercise the in stock option and take a position in the shares at a price normally lower than the then market value of the stock. You can also sell them after a certain period of time.