Unlike FY19, direct to consumer (D2C) fashion brand Bewakoof registered a 27 per cent growth in revenue from operations which increased to Rs 208.33 crore in FY20 from Rs 164.22 crore it earned in FY19.
Around 97.25 per cent i.e Rs 202.6 crore were earned through sales of products on its platform and the remaining Rs 5.73 crore were collected as membership, cash on delivery fees and sale of scrap material. Bewakoof had posted an annual profit of Rs 29.5 lakhs in FY19 but the increased run rate of expenses has caused the annual results to go back in red in FY20. Bewakoof’s annual consolidated losses for FY20 stood at Rs 28.26 crore and EBITDA margins slipped from 3.56 per cent in FY19 to -9.5% in FY20.
Bewakoof operates on an asset-light model and it could be noticed from its asset turnover ratio of 2.25X. It outsources most of the garment manufacturing work to job work contractors. It spent Rs 55.05 crore on such payments during FY20, growing by 21% from Rs 45.53 crore in FY19.
Expenses on purchase of stock in trade shot up 6X to Rs 9.83 crore while the cost of raw materials consumed has gone down by 2.5% from Rs 51.7 crores in FY19 to Rs 50.4 crore in FY20.
