One 97 Communication (Paytm) witnessed a significant downturn on both the NSE and BSE markets today (May 6), experiencing a sharp decline of 15.40 points, with its shares trading at Rs 354 at around 10:30 am The fall in Paytm shares comes after with the news of resignation of Bhavesh Gupta, the company’s President and Chief Operating Officer (COO).
Gupta has transitioned to an advisory role as part of a broader organizational restructuring effort, according to various media reports.
The company’s recent challenges have led to its stock plummeting by 58% over past six months. This decline has also been an outcome of an RBI decisions to ban Paytm Payments Bank from accepting new deposits and conducting transactions due to ongoing non-compliance issues and significant supervisory concerns.
What’s next for Bhavesh Gupta?
Bhavesh Gupta will maintain his support for the company in an advisory capacity within the CEO office after May 31, 2024. Gupta, who previously oversaw the payments and lending sectors, will be transitioning into this advisory role, where he will continue to offer valuable guidance and insights.
As per his Linkedin page, Bhavesh holds a Master’s in Business Administration from the Institute of Management Studies (1997). Before joining Paytm as President & COO in 2020, he played pivotal roles at IDFC Bank Ltd. There, he was part of the senior management and founding team, directly reporting to the MD &and CEO.
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In a meeting on 4th of May 2024, the board of directors of the company took note of the resignation of Mr Bhavesh Gupta. The company has gladly accepted the resignation and moved him to and advisory role
Financial Performance
In the third quarter of financial year 2024, Paytm saw a robust revenue of Rs 2,850 crore, marking a significant 38% year-on-year growth. Notably, the contribution profit surged by 45% YoY to Rs 1,520 crore, with a margin of 53%, up by 2 percentage points compared to the previous year.
Moreover, the EBITDA before ESOP witnessed a substantial increase of Rs 188 crore YoY, reaching Rs 219 crore, with a margin of 8%, up by 6 percentage points YoY. Despite these gains the profit after tax (PAT) showed improvement, but stood at Rs 222 crore, reflecting an increase of Rs 170 crore YoY.
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