PAYTM 2023-24 Annual Report Analysis

Fri, 23 Aug

PAYTM has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

PAYTM Income Statement Analysis

• Operating income during the year rose 24.9% 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 12.1% in FY24 as against 20.6% in FY23.
• Depreciation charges increased by 51.6% and finance costs increased by 10.2% YoY, respectively.
• Other income grew by 39.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 22.3% in FY23 to 14.3% in FY24.

PAYTM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	79,801	99,642	24.9%
Other income	Rs m	4,097	5,731	39.9%
Total Revenues	Rs m	83,898	105,373	25.6%
Gross profit	Rs m	-16,437	-12,018	NA
Depreciation	Rs m	4,853	7,357	51.6%
Interest	Rs m	236	260	10.2%
Profit before tax	Rs m	-17,429	-13,904	NA
Tax	Rs m	336	320	-4.8%
Profit after tax	Rs m	-17,765	-14,224	NA
Gross profit margin	%	-20.6	-12.1
Effective tax rate	%	-1.9	-2.3
Net profit margin	%	-22.3	-14.3

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PAYTM Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 35 billion as compared to Rs 45 billion in FY23, thereby witnessing an decrease of -21.7%.
• Current assets fell 13% and stood at Rs 122 billion, while fixed assets rose 25% and stood at Rs 50 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 171 billion as against Rs 180 billion during FY23, thereby witnessing a fall of 5%.

PAYTM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	106,193	96,396	-9.2
Current Liabilities	Rs m	44,869	35,153	-21.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	179,573	171,272	-4.6
Current assets	Rs m	139,863	121,637	-13.0
Fixed Assets	Rs m	39,710	49,635	25.0
Total Assets	Rs m	179,573	171,272	-4.6

PAYTM Cash Flow Statement Analysis

• PAYTM's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 56.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -221 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 10 billion from the Rs 19 billion net cash flows seen during FY23.

PAYTM Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	4,156	6,508	56.6%
Cash Flow from Investing Activities	Rs m	26,255	3,180	-87.9%
Cash Flow from Financing Activities	Rs m	-11,123	-221	-
Net Cash Flow	Rs m	19,311	9,672	-49.9%

Current Valuations for PAYTM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.4, an improvement from the EPS of Rs -28.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 559.0, stands at -21.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at -60.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	125.9	156.8
TTM Earnings per share	Rs	-28.0	-22.4
Diluted earnings per share	Rs	-27.9	-22.4
Price to Cash Flow	x	-31.4	-60.9
TTM P/E ratio	x	-23.0	-21.5
Price / Book Value ratio	x	3.8	4.3
Market Cap	Rs m	406,892	418,309
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PAYTM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY24, from 3.1x during FY23. 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 improved and stood at -52.5x during FY24, from -72.9x during FY23. 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 -14.8% during FY24, from -16.7% during FY24. 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 -14.2% during FY24, from -16.2% during FY23. 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 -8.2% during FY24, from -9.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	3.1	3.5
Debtors’ Days	Days	57	60
Interest coverage	x	-72.9	-52.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-9.8	-8.2
Return on equity	%	-16.7	-14.8
Return on capital employed	%	-16.2	-14.2

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 down from Rs 905.6 to Rs 559.0, registering a loss of Rs 346.7 or around 38.3%.

Overall, the S&P BSE SENSEX is up 24.5% over the year.

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