PAYTM 2022-23 Annual Report Analysis

Tue, 29 Aug

PAYTM has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PAYTM Income Statement Analysis

• Operating income during the year rose 60.6% 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 20.6% in FY23 as against 48.0% in FY22.
• Depreciation charges increased by 96.2% and finance costs decreased by 43.7% YoY, respectively.
• Other income grew by 41.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 48.2% in FY22 to 22.3% in FY23.

PAYTM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	49,704	79,801	60.6%
Other income	Rs m	2,901	4,097	41.2%
Total Revenues	Rs m	52,605	83,898	59.5%
Gross profit	Rs m	-23,860	-16,437	NA
Depreciation	Rs m	2,473	4,853	96.2%
Interest	Rs m	419	236	-43.7%
Profit before tax	Rs m	-23,851	-17,429	NA
Tax	Rs m	113	336	197.3%
Profit after tax	Rs m	-23,964	-17,765	NA
Gross profit margin	%	-48.0	-20.6
Effective tax rate	%	-0.5	-1.9
Net profit margin	%	-48.2	-22.3

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PAYTM Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 45 billion as compared to Rs 33 billion in FY22, thereby witnessing an increase of 34.6%.
• Current assets rose 30% and stood at Rs 140 billion, while fixed assets fell 45% and stood at Rs 40 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 180 billion as against Rs 180 billion during FY22, thereby witnessing a fall of 0%.

PAYTM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	131,494	106,193	-19.2
Current Liabilities	Rs m	33,325	44,869	34.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	179,846	179,573	-0.2
Current assets	Rs m	107,450	139,891	30.2
Fixed Assets	Rs m	72,396	39,682	-45.2
Total Assets	Rs m	179,846	179,573	-0.2

PAYTM Cash Flow Statement Analysis

• PAYTM's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 26 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 19 billion from the Rs 13 billion net cash flows seen during FY22.

PAYTM Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-12,363	4,156	-
Cash Flow from Investing Activities	Rs m	-54,886	26,255	-
Cash Flow from Financing Activities	Rs m	80,535	-11,123	-
Net Cash Flow	Rs m	13,335	19,311	44.8%

Current Valuations for PAYTM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -28.0, an improvement from the EPS of Rs -36.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 874.0, stands at -37.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at -31.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	76.6	125.9
TTM Earnings per share	Rs	-36.9	-28.0
Diluted earnings per share	Rs	-37.8	-28.0
Price to Cash Flow	x	-15.6	-31.5
TTM P/E ratio	x	-17.0	-37.4
Price / Book Value ratio	x	6.1	3.8
Market Cap	Rs m	804,557	406,892
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 3.1x during FY23, from 3.2x during FY22. 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 -72.9x during FY23, from -55.9x during FY22. 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 -16.7% during FY23, from -18.2% during FY23. 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 -16.2% during FY23, from -17.8% during FY22. 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 -9.8% during FY23, from -13.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.2	3.1
Debtors’ Days	Days	55	57
Interest coverage	x	-55.9	-72.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-13.1	-9.8
Return on equity	%	-18.2	-16.7
Return on capital employed	%	-17.8	-16.2

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 up from Rs 726.1 to Rs 874.0, registering a gain of Rs 147.9 or around 20.4%.

Overall, the S&P BSE SENSEX is up 10.8% over the year.

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