Paytm to focus on net profit prior to ESOP: CEO
NEW DELHI: Paytm will focus on achieving profit after tax instead of centring on operational profit before employees stock option, the fintech’s founder and CEO Vijay Shekhar Sharma said on Thursday.
Paytm had earlier committed to achieving positive EBITDA (earnings before interest, taxes, depreciation and amortization) before ESOP cost.
“I also want to recommit and restate that my board member suggested to me that, instead of talking about EBITDA before ESOP as a benchmark number, you should talk about PAT.
“Now you will see that we are not just focused on EBITDA before ESOP--a little bit of a good indication, but not the perfect indication of a company. We want to be mature to deliver PAT profitability, and that is our commitment,” Sharma said while speaking at the AGM of Paytm-owner One97 Communications Ltd.
Paytm reported widening of loss to Rs 840 crore in the quarter ended June 30, 2024. The company had posted a loss of Rs 358.4 crore in the same period a year ago.
Consolidated revenue declined 33.48 per cent to Rs 1,639.1 crore during the quarter, from Rs 2,464.2 crore in the same period a year ago.
During the annual general meeting (AGM), Sharma also spoke about the impact of artificial intelligence.
He said AI is transforming several things across industry and there will be an upsurge in automated cars in the next five years. “I’m trying to give you a little bit of reference to the dramatic impact AI technology will have on each of us. Financial Services will not be left behind. India has taken a leaf frog and become a sort of the leader in financial technology. Will have an opportunity and obligation to extend the same lead in AI technology,” Sharma said, adding Paytm will strive to bring even further AI powered risk management committees, risk management options, credit risk, fraud risk, and future underwriting of insurance.
Paytm had earlier committed to achieving positive EBITDA before ESOP