Nse Paytm Financials Insights and Data Analysis

Paytm's financials have been on a rollercoaster ride. The company's revenue more than doubled in the last quarter, reaching a staggering ₹3,629 crore.

This growth can be attributed to the increasing adoption of digital payments in India. In the same quarter, Paytm's transaction volume surged to 1.4 billion.

Paytm's user base has also been expanding rapidly. As of the last reported quarter, the company had over 300 million registered users.

The company's ability to process transactions efficiently has been a key factor in its success. Paytm's payment gateway has been able to handle over 1.4 billion transactions in the last quarter.

Worth a look: Ally Financial Announces Second Quarter 2024 Financial Results

Paytm's financials have shown a mixed bag of results over the years. The company's sales have been increasing, with a 60.63% year-over-year growth in FY 24, compared to FY 23. This is a significant jump, and it's worth noting that the company's sales have been growing steadily over the past few years.

Paytm's expenses have also been increasing, but at a slower rate than sales. The company's operating profit has been negative in all the years, with a loss of ₹-1,134 Cr in FY 24. This is a concern, as it indicates that the company is not generating enough profit from its operations.

Here's a breakdown of Paytm's financial performance over the years:

Paytm's other income has been a positive contributor to its financials, with a ₹541.20 Cr income in FY 24. However, this is not enough to offset the company's losses. The company's interest and depreciation expenses have been increasing over the years, which has further added to its losses.

It's worth noting that Paytm's financial performance has been improving in some areas. The company's EPS (Earnings Per Share) has been decreasing over the years, but it's still a significant number. The company's dividend payout percentage has been 0% in all the years, which means that it has not been paying any dividends to its shareholders.

One97 Communications, the parent company of Paytm, has seen a significant growth in its revenues over the years. The company's revenues have grown by 60.63% year-over-year (Y-o-Y) in Mar2024, reaching ₹7,990 Cr.

The 5-year compound annual growth rate (CAGR) for One97 Communications' revenues is a staggering 122.98%. This indicates a consistent and rapid growth in the company's revenues over the past five years.

Here's a breakdown of the company's revenues over the past five years:

The company's operating profit, however, has been consistently negative over the past five years. In Mar2024, the operating profit was ₹-1,631 Cr, with an operating margin of -20.41%.

The company's profit after tax (PAT) has also been negative over the past five years. In Mar2024, the PAT was ₹-1,776 Cr, with a PAT margin of -14.26%.

PAYTM's financial ratios reveal a complex picture. The company's current ratio stood at 3.46x in FY24, indicating its ability to pay short-term and long-term obligations. However, its interest coverage ratio deteriorated to -54.8x in FY22, making it challenging for the company to pay its interest expense on outstanding debt.

The company's return on equity (ROE) improved to -17.9% in FY22, while its return on capital employed (ROCE) also improved to -17.5%. However, the net profit margins grew from 58.1% in FY21 to 47.3% in FY22.

Here are some key financial ratios for PAYTM:

The balance sheet is a crucial financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity, giving us an idea of its financial health.

One of the key things to note from the balance sheet is the company's current liabilities, which stood at Rs 33 billion in FY22, a 54.6% increase from Rs 22 billion in FY21. This indicates that the company has a significant amount of short-term debts to pay off.

The company's current assets rose 45% to Rs 107 billion in FY22, while fixed assets increased by 314% to Rs 72 billion. This suggests that the company has been investing heavily in its assets to support its growth.

The total assets and liabilities for FY22 stood at Rs 180 billion, a 97% increase from Rs 91 billion in FY21. This significant growth is a positive sign for the company.

Here's a breakdown of the company's balance sheet:

Note how the company's current liabilities have increased, but its current assets have also grown at a faster rate, indicating a potential improvement in its financial health.

Let's dive into the world of key ratios and explore how they can help us understand a company's financial health.

The liquidity ratio is a crucial aspect of a company's financial health, and PAYTM's current liquidity ratio is a staggering 3.7, which is impressive compared to its industry average.

The cash ratio, a subset of the liquidity ratio, is 3.16, indicating that PAYTM has a significant amount of cash on hand to meet its short-term obligations.

Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect its accounts receivable, and PAYTM's DSO is a whopping 64.01 days, indicating a relatively slow collection process.

If this caught your attention, see: What Is Financial Liquidity

Days Payable Outstanding (DPO) is another important metric that measures the average number of days a company takes to pay its accounts payable, and PAYTM's DPO is 55.33 days, indicating a relatively slow payment process.

Here are some key liquidity ratios for PAYTM, along with their industry averages:

These ratios provide a snapshot of PAYTM's liquidity position and can be used to make informed investment decisions.