Paytm shares jump 6% after company says loans disbursal grew 374% YoY in Q4; stock gains 19% in 5 days

Shares of Paytm jumped 6% on Wednesday after One 97 Communications Ltd, the parent company, announced operating performance of the Company for 4th Quarter of Fiscal 2022. As per the company, the number of loans disbursed through its platform grew 374% YoY to 6.5 million loans in Q4 FY 2022, while the value of loans disbursed stood at Rs 3,553 Cr (YoY growth of 417%).

Besides, Paytm Super App average monthly transacting users (MTU) for the quarter grew 41% YoY to 70.9 million. It also witnessed over 104% YoY increase in GMV for the quarter at Rs 2.59 Lakh Cr ($ 34.5 billion).

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Vijay Shekhar Sharma, Founder and CEO, Paytm, said the company expects operating EBITDA breakeven would be achieved in next 6 quarters (ie 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, he said.

Speaking of a sharp correction in the Paytm share price since its listing, he said, Paytm shares are down significantly from the IPO price against the backdrop of volatile market conditions for high growth stocks globally.

“Rest assured, the entire Paytm team is committed to building a large, profitable company and to creating long-term shareholder value. Aligned with this, my stock grants will be vested to me only when our market cap has crossed the IPO level on a sustained basis, “added the Paytm founder.

At 12.30 pm on Wednesday, shares of Paytm were trading with nearly 6% gains to RS 644.50 per share on the BSE.

After touching 526.70 a share on the NSE on March 31, the counter rose nearly 19% to Rs 645.05 a share on April 6.

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