Myntra Turns Profitable in FY24 with Rs 30.9 Crore Profit After Recovering from Rs 782 Crore Loss

myntra, the fashion e-commerce platform owned by flipkart, reported a profit of Rs 30.9 crore for the fiscal year ending March 2024 marking a remarkable recovery from a loss of Rs 782.4 crore in FY23. 

This turnaround was driven by a 14.71% increase in revenue, cost optimization, and a reduction in advertising and material costs.

In FY24, Myntra’s revenue from operations rose to Rs 5,121.8 crore, up from Rs 4,465 crore in FY23. The revenue was primarily sourced from logistics (47.6%), marketplace services, and advertising. 

Logistics revenue surged 22.5% to Rs 2,439 crore, while advertising income grew 33.07% to Rs 712.3 crore. The company also generated Rs 195.9 crore from other income sources, pushing its total revenue to Rs 5,173 crore.

Read more - easemytrip Secures INR 234 Cr Investment Through Preferential Equity Issue

Myntra managed to lower its largest expense, material costs, by 7.82%, and reduced advertising expenses by 4.63%. Employee benefits costs increased by 7.74%, while other overheads such as IT and finance expenses amounted to Rs 650 crore. Overall, the company reduced total costs by 3.16%, reaching Rs 5,123 crore for FY24.

The company’s strategic cost-cutting measures and focus on high-margin services enabled it to report a profit of Rs 31 crore for the year, up from the previous year's loss. Myntra also saw an improvement in its return on capital employed (ROCE) and EBITDA margin, which stood at 11.07% and 2.76%, respectively.

Advertisment

Myntra's CEO, Nandita Sinha, has also led the company into the quick-commerce sector with the launch of M-Now, a service that delivers fashion and beauty products within 30 minutes. 

Myntra’s successful shift to profitability marks a significant milestone in its 16-year journey. The company now faces the challenge of balancing growth and profitability, while maintaining control over costs, especially in advertising.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges and achieving success.

Advertisment