Addressing analysts on Wednesday, Vijay Shekhar Sharma, the founder and CEO of One97 Communications, the parent entity that operates brand Paytm, said that he is confident that the organisation will reach back to key metrics, making a strong recovery.
Sharma further added that the company has started to come back, with the focus now on ‘building large revenues and a profit-centric organisation in the long term”, post the regulators directive on its associate entity.
“The last three months have been quite a roller coaster in the journey of Paytm. We learned a lot of lessons. We learned how to become better and resilient. We also resolved ourselves to be fully compliant according to the regulator’s expectation in letter and in spirit. I’m very happy to see that our results are indicating that,” he said.
As a part of its FY24 financial reporting, the company said that it has already started to make a recovery across key metrics such as payment gross merchandise value (GMV) and additions on subscription merchants starting May.
“We now have started to come back to those dynamics of businesses and started to build a large revenue and profit centric company in the long term,” said Sharma, adding that ‘the worst is behind the company’.
Paytm, earlier in the day announced its Q4 FY24 and FY24 results showing strong growth momentum across core payments and financial services distribution business with revenue from operations increasing 25% YoY to ₹9,978 Cr in FY24. However, in Q4FY24, the revenue declined marginally by 3% to ₹2,267 crore, impacted by temporary disruptions in business operations.
Commenting on the same, Sharma said, “In this quarter we might have two months of impact on the business, still our annual performance is better than last year. We remain committed to grow sustainably, focus on profits and focus on the core of the business which is payments.”
Moving ahead, the company’s focus is on governance for the next few quarters as it expects to onboard new independent board members in group entities as well as subsidiaries. In continuation to investing in sales teams and marketing, the company will also invest in customer acquisition, to drive market share.
In addition, insurance and wealth can become positive for the growth of the entity, Sharma said.