Paytm founder and CEO Vijay Shekhar Sharma on Monday said the fintech company will soon achieve profitability and free cash flow. “After our recent quarterly reports, which showed strong operating leverage and reduction in EBITDA losses, we are now excited about the next year of our journey as we get close to EBITDA profitability and free cash flow generation,” Sharma said in a regulatory filing.
The company has posted a consolidated loss of Rs 571.5 crore in Q2FY23 from Rs 473.5 crore a year ago. However, the losses of the company had narrowed on a quarter-over-quarter basis.
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The firm has reported operating loss before ESOP cost at Rs 166 crore in Q2FY23. The EBITDA margin was at -9% as of September 30 as against -39% a year ago. It saw a 30% margin swing, of which 20% was from contribution margin improvement and 10% from reduction in direct expenses, its chief financial officer Madhur Deora said.
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Separately, the company also reported its operating figures for October.
The company’s loan disbursal grew by 387% to Rs 3,056 crore from Rs 627 crore a year ago while the volume grew by more than 161% to 34 lakh loans.
The loan distribution at an annualised basis was at Rs 37,000 crore. The gross merchandise value (GMV) grew by 42% to Rs 1.18 lakh crore during the month from Rs 83 lakh crore a year ago while the monthly transacting user on its super app grew by 33% to 8.4 crore.