Paytm shares jump nearly 5 per cent after business update
NEW DELHI: Shares of One97 Communications, Paytm's parent company, on Wednesday jumped nearly 5 per cent after the company came out with its business update.
The stock gained 4.57 per cent to settle at Rs 637.15 apiece on the BSE.
During the day, it rallied 6.50 per cent to Rs 648.95.
On the NSE, it jumped 4.62 per cent to settle at Rs 637.20 apiece.
Shares of Paytm declined significantly in recent times due to volatile market conditions for high growth stocks, the company's founder and CEO Vijay Shekhar Sharma said on Wednesday.
Sharma also said the company expects to be breakeven in terms of operating EBITDA in the next six quarters.
In a letter to shareholders of the company, Sharma said the shares are down significantly compared to the IPO price due to volatile market conditions for high growth stocks globally.
He added that the company was encouraged by the business momentum.
"While we will publish our fiscal 2022 financial results in due course, we are encouraged by our business momentum, the scale of monetisation and operating leverage.
"We expect this to continue, and I believe we should be operating EBITDA breakeven in the next 6 quarters (i.e.EBITDA before ESOP cost, and by the quarter ending September 2023), well ahead of estimates by most analysts.
Importantly, we are going to achieve this without compromising any of our growth plans," Sharma said.
He said that the entire Paytm team is committed to build a successful, profitable company and create long-term shareholder value.