Mobikwik Growth

Revenue of the company was continuously increasing but this year due to covid19, consumer payments has decreased and hence company has seen a decrease in revenue. But due to recovery in second half of FY21, company's consumer payments segment contributed 72.58% of total revenue from operations and generated positive segment results after absorbing payment gateway and user incentive cost for the entire platform. This deterioration in revenue is temporary and as economic situation gets better company may see improvement in its revenue.

Mobikwik has reported over 10% higher losses in FY21, with revenue from operations plummeting in the wake of the pandemic and the resultant impact on businesses and individuals which further results in decrease in PAT. But company has been profitable in the BNPL segment as their consumer payments segment provides key competitive advantages for the BNPL segment, including brand recall, large existing KYC user base, big data to assess user creditworthiness and a large merchant ecosystem. As a result of the above building blocks being in place, company have a sustainable base to grow the BNPL business in a scalable and profitable manner.

There is sudden improvement in EPS due to increase in number of shares of the company by stock split and bonus issue. But this year EPS has decreased due to decrease in earnings.. With the reduction in impact of covid there are high chances that company may perform better and may see increase in its earnings.

BVPS is negative in the past years, primarily due to negative earnings, however with the ease of covid-19 restriction, company is expected to perform better and yield good returns. 

EBITDA of the company was growing continuously before covid 19, but there was a halt in the pandemic as the no. of transactions were reduced during lockdown. But with situations getting better, the growth may continue.

Operating profit of the company is negative but was continuously improving from last 4 years, this year due to decrease in revenues, profit has seen down turn but company tried to manage its expenses efficiently by reducing employee benefit expenses and interest expenses which decreased primarily due to decrease in borrowing and reduction in non-convertible debentures, and hence, it compensated the decrease in revenue. Still there is a huge growth opportunity in the segment and as company is working towards its plans, it can have high growth in future.

Mobikwik has closed a Rs150 crore funding round from Abu Dhabi Investment Authority, regulatory filings showed, valuing the digital payments startup at more than $700 million ahead of its public listing slated for later this year and they utilize that to increase their asset base. The company is also working to make its technology base stronger which may lead to improvement in asset growth.

Cash from operations of the company were improving year on year, but has seen a decrease in FY21, as during lockdown transactions were minimal, which impacted company's receivables and also increased some of its financial expenses.