Shares of Paytm declined significantly in recent times due to volatile market conditions for high growth stocks, the company’s CEO Vijay Shekhar Sharma said on Wednesday.
Sharma, the Founder and CEO of One97 Communications that operates under the brand Paytm, also said the company expects to be breakeven in terms of operating EBITDA in the next six quarters.
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation.
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.
It came out with the Initial Public Offering (IPO) late last year and the issue price was ₹2,150 per share. However, the scrip has taken a beating on the bourses in recent times and even touched an all-time low of ₹520 apiece.
In morning trade on BSE on Wednesday, shares of Paytm rose 3 per cent to ₹627.85 apiece.
Sharma, in the letter, also said 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, scale of monetisation and operating leverage.
“We expect this to continue, and I believe we should be operating EBITDA breakeven in 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.