BharatPe released it's FY24 results

10 February 2025

• Financial Highlights: Resilient Innovations Private Limited (BharatPe) reported a significant increase in revenue from operations, reaching INR 1,426.1 Cr in FY24, a 38.6% growth compared to the previous year. However, despite this growth, the company continued to post losses, with a total loss of INR 491.9 Cr, though an improvement from the previous year’s INR 926.9 Cr loss. The financial statements also highlight key operational developments, including increased goodwill to INR 119.6 Cr, reflecting acquisitions or strategic investments. On the liability side, the company raised non-current borrowings of INR 341.0 Cr, indicating efforts to strengthen liquidity. Additionally, a petition against the company was noted before the National Company Law Tribunal (NCLT), though management believes it will not significantly impact financials.
  
  
• Operational developments: Operational challenges and financial inefficiencies remain, with a high employee benefit expense of INR 336.6 Cr and other expenses of INR 1,370.1 Cr. Auditor’s reports highlight material weaknesses in internal financial controls, particularly regarding unapproved payments to key management personnel and deficiencies in a subsidiary’s loan provisioning and asset classification. The company's current financial obligations, including trade payables and short-term borrowings, rose to INR 1,314.4 Cr, indicating increasing reliance on short-term funding sources. Despite these issues, a comprehensive restructuring of financial reporting controls is underway to address compliance gaps.
  
  
• Future outlook: Looking ahead, the company aims to improve financial discipline and cost efficiency while capitalizing on its growing market presence. Prospects include optimizing operations, potential fundraising to support expansion, and addressing regulatory concerns. While revenue growth is promising, the company must focus on achieving profitability by controlling expenses and improving governance. Investors should monitor the company’s steps toward strengthening financial controls and operational efficiency in the coming quarters.​​