Shares of India’s largest digital payments service provider remain roughly 70% below its IPO pricePaytm, India’s largest digital payments service provider, aims to break even on an operating basis by September 2023, as it struggles to appease investors following a disappointing initial public offering in November 2021.
The company, which is backed by Japan’s SoftBank Group and China’s Ant Capital, said on Wednesday that its monthly transacting users exceeded 70 million in the fourth quarter of its fiscal year that ended on March 31, 2022, and projected strong growth prospects. Paytm’s shares were up 5 per cent to 642 rupees ($8.5) at 11.24am UAE time, following the announcement. “We are encouraged by our business momentum, scale of monetisation and operating leverage,” said Vijay Sharma, founder and chief executive of Paytm. “We expect this to continue, and I believe we should be operating Ebitda [earnings before interest, taxes, depreciation and amortisation] break even in the next six quarters (ending September 2023), well ahead of estimates by most analysts,” Mr Sharma said in a note to shareholders. “We are going to achieve this without compromising any of our growth plans.” Paytm’s $2.5 billion IPO on the Bombay Stock Exchange, India’s biggest, was touted as a bellwether that the South Asian country’s appeal to global capital was growing. However, the company, which listed as One 97 Communications, lost over a quarter of its value on its trading debut. It has also been hit by regulatory challenges. Last month, the Reserve Bank of India barred Paytm’s Payments Bank venture from accepting new customers. The action was based on certain “material supervisory concerns” and the restrictions will continue pending a comprehensive audit of its information technology systems, the Indian central bank said. The company’s shares remain about 70 per cent below the 2,150-rupee listing price. Despite the IPO debacle, the company is sticking to its business plan that scaled up because of the “necessary capital” the company acquired, Mr Sharma told The National in December. “The best part about the IPO is that we welcomed [a larger] number of people as shareholders. We are seeing tremendous uptake of the credit business, which is bringing money to the bottom line,” he said. On Wednesday, Paytm confirmed that its adoption by merchants had increased to 2.9 million devices and that its platform has disbursed more than 6.5 million loans per quarter. “Against the backdrop of volatile market conditions for high growth stocks globally, our shares are down significantly from the IPO price,” Mr Sharma said in the note. “Rest assured, the entire Paytm team is committed to build a large, profitable company and to create long-term shareholder value. Aligned with this, my stock grants will be vested to me only when our market cap has crossed the IPO level on a sustained basis.”
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Airlines are struggling to recruit and train enough staff to cope with the increased demand for travelBritish Airways has cancelled 78 flights scheduled to go to or from Heathrow Airport on Wednesday, four of them a result of staff absences. EasyJet, which is also grappling with higher than usual rates of staff sickness because of Covid-19, axed at least 30 flights from its schedule from Gatwick Airport on Wednesday. The mass cancellations came as staff shortages because of Covid and issues with rehiring continue to blight the travel industry as it recovers from the pandemic, causing chaos at UK airports. Manchester Airport’s boss stepped down on Tuesday after days of harsh criticism over long queues. Last week BA cancelled many of its flights after a decision to reduce its schedule until the end of May to boost reliability, as well as routes suspended for several months because of ongoing Covid restrictions in some destinations. Passengers at Heathrow have for weeks faced longer than normal queueing times as a result of staff shortages, problems with e-gates for passport scanning, and flight cancellations. Many airlines, which laid off vast numbers of staff at the beginning of the coronavirus crisis, are racing to recruit, train and get security clearances for new employees in time for the busy summer season. Manchester Airport was hit by upheaval in the travel industry in recent weeks, with the problems worsening in recent days as families head off on holidays for the Easter break. Passengers faced long delays and chaotic scenes, with queues trailing outside terminals to reach check-in and hordes of people waiting to get through security and to pick up luggage. Piles of suitcases were left in terminals after travellers abandoned the wait to reclaim their baggage and opted instead to go home. The airport is short staffed after laying off workers during the pandemic. Birmingham Airport has also been affected by the industry-wide problems. The managing director at Manchester quit on Tuesday evening after the chaos prompted the region’s mayor to hold crisis talks with police and firefighters in case they would be needed to step in. Karen Smart resigned and will return to the south of England for family reasons and to “pursue fresh career opportunities”, her bosses said. Last weekend the airport apologised to passengers after admitting it had “fallen short of the standards they expected”. Ms Smart’s resignation was announced hours after Manchester mayor Andy Burnham said police and firefighters could be called in to bring order to the manic scenes at the airport, which he called “concerning”. “I have been in touch with colleagues at Greater Manchester Police at the weekend to see what we can do to support the airport,” Mr Burnham said. Readmore: https://www.thenationalnews.com/world/uk-news/2022/04/06/british-airways-cancels-78-heathrow-flights-as-manchester-airport-boss-quits-amid-chaos/ |
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