The shares of Indian digital payments service provider PayTM hit it's first ever upper circuit of 20% as it's stock rose to ₹ 669.6 in Tuesday's trade at the Bombay Stock Exchange.
The Fintech Giant has registered its first since inception quarterly operating profit. Further, the company's losses habe narrowed down in the third quarter (Q3) for financial year 2022-23 (Current Fiscal Year).
PayTM announced its quarterly earnings on Friday. For Q3, the Indian payment gateway services provider reported a consolidated net loss of ₹ 392 Cr., down from ₹ 779 Cr. which was in the year ago period (Fiscal Year 2021-22).
The Fintech's operating profit rose for the current Financial Year FY 2022-23 by ₹ 424 Cr. As compared to the preceding Fiscal Year of 2021-22 period.
PayTM also improved it's margins to 2% of revenue for the current fiscal year.
PayTM has showcased sustainable profitability in its market run and investor trust showcasing the company's string longevity attributes. as PayTM is among the top 3 Indian Digital Payment Platform with a robust framework of users and user delight features.
The company’s Group Chief Financial Officer Mr. Madhur Deora informed that the Ebitda profitability has shown stableity in its path to where it is today and without cutting on any investments that were adding value for the company's growth process in the future.
He said- “As you would’ve noticed, in the last three quarters this number (indirect expenses) has been flat at about ₹ 1,000 Cr. a quarter, and on a year-on-year basis, this has been up only 20%. As a result, as a percent of revenue, this has declined quite meaningfully, and a combination of these two has allowed us to become Ebitda profitable.”
The company, which was founded in 2010, has been steadily growing in the past decade and has become one of the leading Fintech companies in India.
The company attributes its success to a combination of factors, including the rapid growth of its user base, as well as the increasing popularity of its digital payment services. PayTM has been able to expand its services beyond just mobile recharge and bill payments to include a wide range of financial services, such as insurance, investment, and wealth management.
Paytm's CEO, Mr. Vijay Shekhar Sharma, stated that the company's focus on innovation and customer experience has driven its growth and profitability. "We are proud to have achieved this milestone and it is a testament to the hard work and dedication of our employees," He said:
"We will continue to focus on delivering the best possible experience to our users and expanding our services to serve even more customers in the future."
The company's financial results have been well received by investors, who see it as a sign of the growing potential of the digital payments industry in India. Paytm's success has also helped to attract more investment into the sector, as well as increase competition among other players in the market.
With its first ever quarterly profit, Paytm is well positioned to continue its growth and expand its services in the future. The company's success is a positive sign for the Indian economy and its digital payments sector, and it is expected to inspire more innovation and growth in the industry.