Can India’s Paytm go from cash guzzler to cash-generating machine?

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One 97 Communications’ IPO became India’s largest listing when it went to market at the tail-end of 2021.

The firm is the parent entity of Paytm, a mobile payments and financial services company.

Shares continued to climb after the IPO, peaking a week later. The company failed to sustain this momentum, with shares even going down by more than 70% at one point.

But like other tech companies, shares of One 97 made a bit of a comeback this year – they are up by 17%, year to date. In this week’s premium story, my colleague Samreen analyzes the company’s most recent results, which beat market expectations by achieving operational profitability three quarters ahead of guidance.

Can One 97, which was once called a “cash guzzler,” become the “free cash flow generating machine” that its CEO, Vijay Sharma, envisions?

One lender in Singapore can certainly be considered a cash-generating machine. DBS Bank’s earnings in the fourth quarter of 2022 saw net profit surge to S$2.3 billion (US$1.7 billion), beating estimates as well.

However, one issue that DBS faces is where to invest those earnings for the future. Its digital assets business, for instance, is growing quickly, but it may also attract more scrutiny from regulators. I look at this more closely in this week’s Hot Take.

– Simon

THE BIG STORY

Paytm looks to turn things around with focus on cash flow

Image credit: Timmy Loen

Fresh opportunities and a growing loan portfolio could boost the topline of the payments firm, which recently turned operationally profitable.

THE HOT TAKE

DBS sticking to its guns on digital assets

NEWS YOU SHOULD KNOW

FYI