Paytm shares rally 5% despite widening net loss in Q4

Pursuant to the ’s actions on Payments Bank (PPBL), Paytm had terminated its nodal accounts being maintained with PPBL. Subsequently, Paytm discontinued all major business activities with PPBL and has also made amendments to the shareholders’ agreement with PPBL by simplifying the terms while also withdrawing its nominee director from the board of PPBL, stated the company filing to the exchanges.

Considering the future uncertainties associated with the business operations of the payments bank business, Paytm has recorded an of Rs 227 crore representing the carrying value of its investment in PPBL as an impairment of investment in its Q4 results.

“We expect near-term financial impact to our revenue and profitability, due to disruptions faced in our business in Q4. This includes steady state impact due to pausing of PPBL wallet. We had also paused a few other payments and loan products to our customers during the last quarter, and I am happy to share that many such products have been restarted or in the process of starting soon,” said , founder & MD of .

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Sharma also added that led by capabilities of and focussing on core business, the company is also working on significant cost efficiencies including leaner organization structure. Ongoing experiments and learnings in AI promise to revolutionize customer and merchant care for the financial industry, while also unlocking new avenues for revenue generation and cost savings.

Paytm anticipates tangible results from these initiatives in the coming quarters, further bolstering competitive advantage in the market and aims towards building the business according to regulatory compliances and prudent operations risk policies.

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