As shares of One 97 Communications, the parent company of Paytm, climbed after the company’s December quarter earnings performance enthused investors, Zomato chief Deepinder Goyal extended his congratulations to the company and Paytm founder Vijay Shekhar Sharma. But his message also came with a pat of the back.
Paytm's EBITDA (earnings before interest, taxes, depreciation, and amortization), an indicator of operational profit, before deducting employee stock option ESOP cost margin improved to Rs 31 crore during the third quarter that ended on December 31.
“Congratulations, @vijayshekhar and @Paytm on becoming profitable. Sorry, a bit late to the party – was so busy working on our own profitability,” Deepinder Goyal tweeted, along with a ‘wink’ emoji.
Congratulations, @vijayshekhar and @Paytm on becoming profitable.Sorry, a bit late to the party – was so busy working on our own profitability ;-)
— Deepinder Goyal (@deepigoyal) February 7, 2023
Paytm has calculated an incentive of Rs 130 crore from UPI transactions in three quarters but Vijay Shekhar Sharma said that the incentive may technically make the fourth quarter a free cash flow positive quarter but Paytm will report as a one-time item.
Sharma, in a letter to shareholders, said that the company had achieved operating profitability in Q3, which is three quarters ahead of the guidance which was for the September quarter.
“This has been made possible due to the relentlessly focused execution by our team. The team was asked to focus on growth with quality revenues that contribute to the bottomline. We have achieved this milestone without losing sight on growth opportunities and keeping all compliances as well as risk factors under a strict watch," he said.
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