Internet firms must show they can generate cash, profits soon: Axis Bank MD

Amitabh Chaudhry makes this statement at a discussion on new-age internet companies drawing high valuations, sometimes even higher than the traditional businesses

Weighing in on the discussion about new-age internet companies drawing high valuations, sometimes even higher than the traditional businesses, Amitabh Chaudhry, MD & CEO, Axis Bank said, very soon these internet companies will have to demonstrate that they can generate cash flows and profits, else their value may fall.

Also, when you get a very high valuation, it is based on an expectation and if that expectation is not met, you will also notice that the fall in value will be very high, Chaudhry said.

“At the end of the day, businesses will be valued on how much cash flows