Paytm Says No Impact On Profitability After UPI Incentive Cut In Budget
The company is committed to achieving a profitable quarter in this fiscal, CEO Vijay Shekhar Sharma said.
Fintech firm One97 Communications Ltd., which operates Paytm, has reported no impact due to the lower incentives earmarked by the government in the budget for promotion of small ticket digital transactions, according to a statement from the company's top official.
Reduced allocation of incentives for promoting small-ticket digital transactions would not impact profitability guidance for the current fiscal year, Paytm Chief Executive Officer Vijay Shekhar Sharma said, while speaking at the launch of the 'Card NFC Soundbox' machine.
The company is committed to achieving a profitable quarter in this fiscal, Sharma said.
The government has lowered incentive allocation for Rupay and UPI transactions by about 42% in the budget.
"My team and we are also committed to making sure that we go back to profitable quarters very, very soon. We are hoping and working on making sure that we deliver at least one profitable quarter in this financial year as soon as we are able to see a lot more clarity coming our way," Sharma had said.
Paytm had reported widening of loss to Rs 840 crore in the quarter ended June 30, 2024. The company had posted a loss of Rs 358.4 crore in the same period a year ago.
Consolidated revenue declined 33.48% to Rs 1,639.1 crore during the quarter, from Rs 2,464.2 crore in the same period a year ago.
(With inputs from PTI.)
