NEW DELHI: Digital funds firm One97 Communications Limited, which operates beneath the Paytm model, doesn’t influence the worth at which its inventory trades however the administration is making efforts to make the agency worthwhile, its MD and CEO Vijay Shekhar Sharma instructed shareholders on Friday. Speaking on the firm’s 22nd annual common assembly (AGM), he stated until 2018-19, the corporate was in enlargement mode and it entered into the monetisation mode from 2019-20, in accordance to contributors who attended the assembly.
Sharma stated as the corporate has dedicated earlier, Paytm will put up operational revenue within the quarter ending September 2023.
“Share price movement is not influenced by us. There are several factors. Company’s profitability plays a very important factor in it. Company’s growth plays an important role in it but these two are not the only factor for share price.
“Macro, micro, worldwide traders and a number of other different sentiments play a task in share costs,” Sharma said.
Responding to shareholders’ questions, he said the management is making efforts to ensure that the company registers growth and earns strong profit for expanding business.
Shareholders of One97 Communications Limited asked the management about the path to profitability and rebounding of share price to the IPO level of Rs 2,150. The stock closed at Rs 771 on Friday.
While most of the shareholders who got to speak during the AGM expressed faith in the company’s business model, some expressed displeasure at the losses of One97 Communications and drop in share price.
A shareholder, Manjit Singh, said the business model of Paytm is good and the brand is visible but the share price is far below the IPO level, which the company should look at.
Another shareholder Bimal Kumar asked about employee retention rate, timeline for break-even and valuator of the company who pegged the share price at Rs 2,150.
Shareholder Santosh Kumar Saraf asked the company to increase female employees ratio at the company and settle old disputes pertaining to 2013-14, while expressing faith in the company’s business growth.
Shareholder Lokesh Gupta enquired about the reason for loss when the management was taking high salaries and asked the firm to cut down on the costs.
Other shareholders asked about the company’s expansion plans overseas and status of margins in the business.
Sharma said the company makes money on every transaction, in the range of 4 paise to 14 paise on every Rs 100 and in some cases like FASTag, it goes up to Re 1.
“Wherever we’ve got put in the sound field, we get a subscription price. When variety of gadgets go up, funds enhance then it leads to revenue,” Sharma added.
He said Paytm has around 3 crore merchants and the company believes that there is a need to expand services to more merchants, for which expenses are being made by the marketing team.
“This expense might look (like) loss at current however it’s going to give a very good return in the long run,” he asserted.
Sharma also said the company will look at overseas expansion after becoming cash flow positive in India.
Paytm President and Group CFO Madhur Deora said attrition rate at the company is in the range of 2 to 2.5 per cent per month.
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