FinoPaytech Annual Reports, Balance Sheet and Financials

Financial Inclusion (FINO Paytech Ltd.) Balance Sheet (Rs in Lakhs)

 Financial Inclusion (FINO Paytech Ltd) Profit & Loss Statement (Rs in Lakhs)

 Financial Inclusion (FINO Paytech Ltd) Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities:

This section highlights cash generated from the core business operations. For the year ending March 31, 2024, the net cash generated from operating activities was ₹59,509.74 lakhs, up significantly from ₹40,083.96 lakhs in 2023.

Key drivers for the increase in 2024 include:

Profit before tax of ₹7,955.83 lakhs (compared to ₹6,230.26 lakhs in 2023).

A major increase in depreciation expenses (₹6,321.25 lakhs compared to ₹5,044.06 lakhs), signaling significant wear and tear on assets.

A marked reduction in interest income (₹15,702.65 lakhs in 2024 from ₹10,760.61 lakhs in 2023) likely indicates reduced earnings from investments or loans.

Finance charges (₹5,430.79 lakhs) also increased due to higher debt or lease liabilities, indicating higher costs related to borrowed funds.

In terms of working capital changes, notable adjustments include a huge increase in other current financial liabilities (₹51,351.87 lakhs) and a decrease in other current assets. The company also saw cash inflows from trade payables and current liabilities. Together, these changes contributed to the strong cash inflow from operations before tax and interest adjustments. After accounting for interest received and paid, and taxes, the final cash inflow from operations was robust, reflecting a strong year for operational efficiency.

Cash Flow from Investing Activities:

The company experienced significant outflows related to investing activities in both years, with a net cash outflow of ₹57,457.28 lakhs in 2024, slightly higher than the ₹53,079.29 lakhs in 2023. Major outflows include:

Acquisition of property, plant, and equipment (PPE) and capital work-in-progress amounted to ₹8,821.30 lakhs in 2024, compared to ₹7,933.37 lakhs in 2023, reflecting ongoing investments in infrastructure.

There was a substantial investment in acquisitions and investments, totaling ₹59,897.63 lakhs in 2024, signaling a significant portion of capital allocated to expanding the company 's investment portfolio.

In terms of inflows, the company earned interest income from investments of ₹15,498.61 lakhs in 2024 (up from ₹10,499.02 lakhs in 2023), helping to mitigate the overall cash outflows from investing activities. However, the heavy expenditure on acquisitions, software, and fixed deposits led to a net cash outflow.

Cash Flow from Financing Activities:

The cash flows from financing activities in 2024 showed a significant turnaround, with a net inflow of ₹21,402.42 lakhs, compared to a massive outflow of ₹52,820.86 lakhs in 2023. The major factors contributing to this were:

Proceeds from short-term borrowings of ₹27,840.93 lakhs, reflecting an increase in borrowing activities to fund operations or capital requirements.

There were no buybacks or dividend payments in 2024, which contrasted with the significant outflows in 2023, where the company had spent ₹12,500.00 lakhs on a buyback of equity shares and paid out ₹50,244.19 lakhs as preference dividends.

At the same time, interest and finance charges paid increased to ₹5,375.28 lakhs (up from ₹3,213.89 lakhs in 2023), reflecting the cost of higher debt. Other outflows included lease liability payments and lease interest, reflecting the company 's lease obligations.

Net Change in Cash and Cash Equivalents:

In total, the company experienced a significant net increase in cash of ₹23,454.88 lakhs in 2024, compared to a large decrease of ₹65,816.18 lakhs in 2023. The company began 2024 with ₹39,931.63 lakhs in cash and ended the year with a healthier balance of ₹63,386.50 lakhs, indicating improved liquidity and cash management during the year.

Financial Ratios of Financial Inclusion (FINO)

 Here is a summary of the financial and operational metrics for Financial Inclusion (FINO) for the year 2024 and 2023:

Current Ratio

The current ratio measures the company 's ability to pay short-term liabilities with short-term assets. A significant drop from 5.2 in 2023 to 1.62 in 2024 indicates that the company’s liquidity position has weakened, meaning it now holds fewer current assets relative to its current liabilities.

Debt Service Coverage Ratio (DSCR)

The DSCR assesses the company’s ability to service debt through operating income. Negative ratios in both years indicate the company is struggling to generate enough cash to cover its debt obligations. The ratio has improved significantly from -24.61 in 2023 to -3.48 in 2024.

Return on Equity (ROE)

ROE measures the profitability generated from shareholders ' equity. The company’s negative ROE in both years indicates that it incurred losses rather than profits. However, the improvement from -13% in 2023 to -2% in 2024 suggests the company is moving towards a recovery, with reduced losses compared to the previous year.

Inventory Turnover Ratio

This ratio reflects how efficiently the company manages its inventory. The sharp drop in the inventory turnover ratio from 83.56 in 2023 to 21.66 in 2024 indicates a slowdown in inventory sales or higher stock levels relative to sales.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio indicates how quickly the company collects payments from customers. The increase from 229% in 2023 to 416% in 2024 indicates that the company has improved its credit management, collecting receivables more efficiently.

Trade Payables Turnover Ratio

This ratio measures the rate at which the company settles its accounts payable. The small decrease from 137% to 132% suggests that the company’s payment cycle to its suppliers has remained stable, with only a slight delay in paying creditors compared to the previous year.

Net Capital Turnover Ratio

This ratio reflects how efficiently the company uses its working capital to generate sales. The jump from 24% in 2023 to 58% in 2024 indicates that the company has become more efficient at utilizing its working capital, generating higher revenues relative to its capital base.

Net Profit Ratio

The net profit ratio measures profitability relative to sales. Despite still being negative, there is a significant improvement in 2024, where the net loss as a percentage of revenue was -59%, compared to a substantial -436% in 2023.

Return on Capital Employed (ROCE)

ROCE measures the company’s efficiency in using its capital to generate profits. Both years show negative ROCE, indicating that the company has not been generating positive returns on its capital. However, the improvement from -10% to -2% suggests that the company 's capital deployment has become more efficient, and it is closer to breaking even.

Return on Investment (ROI)

Similar to ROE and ROCE, ROI measures the profitability generated from the company 's investments. The negative ROI in both years indicates losses, but the improvement from -13% in 2023 to -2% in 2024 suggests a substantial reduction in investment-related losses.