Myntra swings to profit in FY24 after FY23 ₹782cr loss
What's the story
Flipkart-owned fashion e-commerce platform Myntra has reported a remarkable financial turnaround in the fiscal year ending March 2024. The company posted a profit of ₹30.9 crore in FY24, a stark contrast to the last year's loss of ₹782.4 crore. The remarkable recovery was primarily driven by an increase in revenue and effective cost management strategies, especially in advertising and material costs.
Revenue rise
Myntra's operational revenue witnesses significant growth
Myntra's operational revenue witnessed a significant growth of 14.71% in FY24, increasing from ₹4,465 crore in FY23 to ₹5,121.8 crore. This was revealed in the company's consolidated financial statement accessed from the Registrar of companies (RoC). The company's main revenue generators are logistics, marketplace services, and advertising.
Revenue breakdown
Logistics and advertising drive Myntra's revenue growth
Logistics services played a major role in Myntra's operating revenue, contributing 47.6% with a 22.5% growth to ₹2,439 crore in FY24. Earnings from marketplace services remained stable at ₹1,774.6 crore. Meanwhile, income from advertising witnessed a massive 33.07% jump to ₹712.3 crore while other income streams contributed ₹195.9 crore more to the company in the same fiscal year.
Cost management
Myntra's cost optimization strategies contribute to profitability
Myntra managed to cut its total costs by 3.16% in FY24, from ₹5,290 crore in FY23 to ₹5,123 crore. The company's biggest cost, material costs, fell by 7.82% to ₹1,996.4 crore while ad costs were reduced by 4.63% to ₹1,677.4 crore. However, employee benefit expenses rose by 7.74% to ₹800 crore with other overheads like finance cost, IT expense adding another ₹650 crore last fiscal.
Financial performance
Myntra's financial indicators show positive trend
The company's return on capital employed (ROCE) and EBITDA margin improved to 11.07% and 2.76%, respectively, reflecting a positive financial trend. On a unit basis, Myntra spent ₹1 to earn a rupee during the fiscal year. The Bengaluru-based firm recorded cash and bank balances of ₹37 crore while its current assets were valued at ₹4,384 crore in FY24.
New venture
Myntra ventures into quick commerce with M-Now
Under Nandita Sinha's leadership, Myntra has entered the quick commerce space with its latest offering, M-Now. The service promises to deliver fashion and beauty products to users in just 30 minutes. The launch of this feature is a major step in the company's growth strategy and its commitment to improving customer experience.