PAYTM 2021-22 Annual Report Analysis

Thu, 25 Aug

PAYTM has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PAYTM Income Statement Analysis

• Operating income during the year rose 77.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 47.1% in FY22 as against 64.0% in FY21.
• Depreciation charges increased by 38.5% and finance costs increased by 10.8% YoY, respectively.
• Other income declined by 24.5% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 58.1% in FY21 to 47.3% in FY22.

PAYTM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	28,002	49,704	77.5%
Other income	Rs m	3,844	2,901	-24.5%
Total Revenues	Rs m	31,846	52,605	65.2%
Gross profit	Rs m	-17,924	-23,401	NA
Depreciation	Rs m	1,785	2,473	38.5%
Interest	Rs m	378	419	10.8%
Profit before tax	Rs m	-16,243	-23,392	NA
Tax	Rs m	27	113	318.5%
Profit after tax	Rs m	-16,270	-23,505	NA
Gross profit margin	%	-64.0	-47.1
Effective tax rate	%	-0.2	-0.5
Net profit margin	%	-58.1	-47.3

Don't Miss: Key Information for Long-term Investors

PAYTM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 33 billion as compared to Rs 22 billion in FY21, thereby witnessing an increase of 54.6%.
• Current assets rose 45% and stood at Rs 107 billion, while fixed assets rose 314% and stood at Rs 72 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 180 billion as against Rs 91 billion during FY21, thereby witnessing a growth of 97%.

PAYTM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	61,082	131,494	115.3
Current Liabilities	Rs m	21,552	33,325	54.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	91,478	179,846	96.6
Current assets	Rs m	73,998	107,450	45.2
Fixed Assets	Rs m	17,480	72,396	314.2
Total Assets	Rs m	91,478	179,846	96.6

PAYTM Cash Flow Statement Analysis

• PAYTM's cash flow from operating activities (CFO) during FY22 stood at Rs -12 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -55 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 81 billion, an improvement of 3,726% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 13 billion from the Rs -4 billion net cash flows seen during FY21.

PAYTM Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-20,825	-12,363	-
Cash Flow from Investing Activities	Rs m	19,298	-54,886	-
Cash Flow from Financing Activities	Rs m	-2,221	80,535	-
Net Cash Flow	Rs m	-3,708	13,335	-

Current Valuations for PAYTM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -36.2, an improvement from the EPS of Rs -269.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 767.0, stands at -19.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 10.0 times.
• The company's price to cash flow (P/CF) ratio stood at -38.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	463.0	76.6
TTM Earnings per share	Rs	-269.0	-36.2
Diluted earnings per share	Rs	-25.1	-36.2
Price to Cash Flow	x	0.0	-38.3
TTM P/E ratio	x	0.0	-19.0
Price / Book Value ratio	x	0.0	6.1
Market Cap	Rs m	0	804,557
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PAYTM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.2x during FY22, from 3.4x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at -54.8x during FY22, from -42.0x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at -17.9% during FY22, from -26.6% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at -17.5% during FY22, from -26.0% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at -12.8% during FY22, from -17.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.4	3.2
Debtors’ Days	Days	61	55
Interest coverage	x	-42.0	-54.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-17.4	-12.8
Return on equity	%	-26.6	-17.9
Return on capital employed	%	-26.0	-17.5

To see how PAYTM has performed over the last 5 years, please visit here.

PAYTM Share Price Performance

Over the last one year, PAYTM share price has moved up from Rs 0.0 to Rs 767.0, registering a gain of Rs 767.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 5.8% over the year.

(To know more, check out historical annual results for PAYTM and quarterly results for PAYTM)

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