Home / Companies / News /  There will be no more cash burn in business: Paytm CEO Vijay Shekhar Sharma

Going ahead, there will be no more cash burn in the business, Paytm Chief Executive Officer (CEO) Vijay Shekhar Sharma said at the Business Standard BFSI Insight Summit 2022 in Mumbai on Wednesday.

“It has got decided last month that it (cash burn) would no more be continuing," Sharma said, adding that the digital payments company was far ahead on re-setting its ambition on controlling spends.

"As far as Paytm is concerned, we have publicly declared that we are far ahead of our ambitions — far meaning the border of magnitude ahead — in terms of re-setting our cash burns," the Paytm boss said at the banking event.

Earlier in November, Paytm said it would become free cash flow positive in the next 12-18 months.

The digital financial services firm had net cash, cash equivalents and investable balance of 9,182 crore at the end of September, as per its latest quarterly earnings report.

CLSA had also upgraded Paytm last month saying that cash burn could end in another four to six quarters.

Paytm buyback

One97 Communications, which operates under the Paytm brand, recently announced a share buyback scheme worth 850 crore at 810 apiece.

The company has opted for the open market route through the stock exchange method for the buyback programme and expects the process to be completed within a maximum period of six months.

Global financial company Morgan Stanley has said that the company's directors and key management personnel (KMP) will not sell shares during the buyback period.

Morgan Stanley said the buyback won't hamper any growth plans as it believes the company will generate excess cash after taking into account the investments required for growing the business. It also expects tailwinds on cash generation from improving adjusted earnings before interest, taxes, depreciation, and amortisation (Adj Ebitda).

SoftBank-backed Paytm listed last year after a mega $2.5 billion initial public offer (IPO). Since then, however, the stock has plunged as investors worried about the sky-high valuations of tech companies amid fears of a global economic recession.

Shares of Paytm fell as much as 2.04% to 516.00 apeice on the NSE on Wednesday.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout