Paytm will shift its focus to achieving profit after tax (PAT) rather than concentrating on operational profit before employee stock option (ESOP) costs, as announced by founder and CEO Vijay Shekhar Sharma on Thursday.
Paytm had previously pledged to generate a profit before ESOP costs, or earnings before interest, taxes, depreciation, and amortization.
“I also want to reiterate and recommit that my board member advised me to talk about PAT as a benchmark figure before ESOP, rather than EBITDA.
Sharma emphasized that the company is moving beyond just focusing on EBITDA before ESOP, which provides some insight but is not a comprehensive measure of a company’s performance. The goal is to mature as an organization and achieve profitability in terms of PAT.
For the quarter ending June 30, 2024, Paytm reported an increased loss of₹840 crore, compared to a loss of₹358.4 crore for the same period the previous year.
Consolidated revenue for the quarter fell by 33.48% to₹1,639.1 crore, compared to₹2,464.2 crore in the same period last year.
At the annual general meeting (AGM), Sharma also discussed the impact of artificial intelligence (AI). He noted that AI is revolutionizing various industries and predicted a significant increase in automated vehicles over the next five years.
“I’m highlighting the substantial effect AI technology will have on all of us. Financial services will also be influenced. India has already made significant strides in financial technology and will now have the chance and responsibility to lead in AI technology as well,” Sharma remarked.
He mentioned that Paytm aims to enhance its AI capabilities in areas such as risk management committees, risk management options, credit risk, fraud prevention, and future insurance underwriting.
Paytm’s Chief Financial Officer, Madhur Deora, shared that over the past few years, Paytm has dedicated substantial efforts to collaborating with local law enforcement agencies—including police, cyber cells, the enforcement directorate, and the Serious Fraud Investigation Office (SFIO)—to conduct workshops. These sessions are designed to assist investigative agencies in understanding the challenges and types of crimes they may encounter in the evolving landscape of digital payments.
