PAYTM ONE 97 COMMUNICATIONS 2024-25 Annual Report Analysis

Thu, 7 Aug

PAYTM ONE 97 COMMUNICATIONS has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

PAYTM ONE 97 COMMUNICATIONS Income Statement Analysis

• Operating income during the year fell 45.0% 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 stood at 14.3% in FY25 as against 12.1% in FY24.
• Depreciation charges decreased by 10.6% and finance costs decreased by 38.1% YoY, respectively.
• Other income grew by 16.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 14.3% in FY24 to 14.4% in FY25.

PAYTM ONE 97 COMMUNICATIONS Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	99,642	54,792	-45.0%
Other income	Rs m	5,731	6,677	16.5%
Total Revenues	Rs m	105,373	61,469	-41.7%
Gross profit	Rs m	-12,018	-7,831	NA
Depreciation	Rs m	7,357	6,575	-10.6%
Interest	Rs m	260	161	-38.1%
Profit before tax	Rs m	-13,904	-7,890	NA
Tax	Rs m	320	0	-100.0%
Profit after tax	Rs m	-14,224	-7,890	NA
Gross profit margin	%	-12.1	-14.3
Effective tax rate	%	-2.3	0.0
Net profit margin	%	-14.3	-14.4

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PAYTM ONE 97 COMMUNICATIONS Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 43 billion as compared to Rs 35 billion in FY24, thereby witnessing an increase of 22.9%.
• Current assets fell 0% and stood at Rs 121 billion, while fixed assets rose 7% and stood at Rs 53 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 174 billion as against Rs 171 billion during FY24, thereby witnessing a growth of 2%.

PAYTM ONE 97 COMMUNICATIONS Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	96,396	122,700	27.3
Current Liabilities	Rs m	35,153	43,191	22.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	171,272	174,413	1.8
Current assets	Rs m	121,637	121,312	-0.3
Fixed Assets	Rs m	49,635	53,101	7.0
Total Assets	Rs m	171,272	174,413	1.8

PAYTM ONE 97 COMMUNICATIONS Cash Flow Statement Analysis

• PAYTM ONE 97 COMMUNICATIONS's cash flow from operating activities (CFO) during FY25 stood at Rs 386 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -19 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -178 million, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -19 billion from the Rs 10 billion net cash flows seen during FY24.

PAYTM ONE 97 COMMUNICATIONS Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	6,508	386	-94.1%
Cash Flow from Investing Activities	Rs m	3,180	-19,348	-
Cash Flow from Financing Activities	Rs m	-221	-178	-
Net Cash Flow	Rs m	9,672	-19,140	-

Current Valuations for PAYTM ONE 97 COMMUNICATIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.4, an improvement from the EPS of Rs -22.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,052.7, stands at 227.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 12.3 times.
• The company's price to cash flow (P/CF) ratio stood at -333.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	156.8	85.9
TTM Earnings per share	Rs	-22.4	-12.4
Diluted earnings per share	Rs	-22.3	-12.4
Price to Cash Flow	x	-37.4	-333.0
TTM P/E ratio	x	-22.2	227.7
Price / Book Value ratio	x	4.3	3.6
Market Cap	Rs m	418,309	437,881
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PAYTM ONE 97 COMMUNICATIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY25, from 3.5x during FY24. 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 -48.0x during FY25, from -52.5x during FY24. 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 -6.4% during FY25, from -14.8% during FY25. 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 -6.3% during FY25, from -14.2% during FY24. 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 -4.4% during FY25, from -8.2% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	3.5	2.8
Debtors’ Days	Days	60	82
Interest coverage	x	-52.5	-48.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-8.2	-4.4
Return on equity	%	-14.8	-6.4
Return on capital employed	%	-14.2	-6.3

To see how PAYTM ONE 97 COMMUNICATIONS has performed over the last 5 years, please visit here.

PAYTM ONE 97 COMMUNICATIONS Share Price Performance

Over the last one year, PAYTM ONE 97 COMMUNICATIONS share price has moved up from Rs 507.0 to Rs 1,052.7, registering a gain of Rs 545.7 or around 107.6%.

Overall, the S&P BSE SENSEX is up 1.7% over the year.

(To know more, check out historical annual results for PAYTM ONE 97 COMMUNICATIONS and quarterly results for PAYTM ONE 97 COMMUNICATIONS)