Increased revenue and decreased expenditure help Myntra achieve 31 crore net profit in FY24
09 December 2024, Mumbai
An increased revenue and reduction in overall expenses helped Flipkart-owned fashion platform Myntra to turnaround its Rs 782 crore net loss in FY23 into a Rs 31 crore net profit in FY24. The e-commerce company’s operating revenue grew by 15 per cent to Rs 5,122 crore during the year from Rs 4,465 crore in the previous year, per regulatory filings.
Myntra’s non-operating revenue grew by Rs 52 crore, mainly from royalty income, raising its total revenue to Rs 5,174 crore. The company was able to achieve profitability as it has the required size and technology to turn profitable, says Nandita Sinha, CEO, Myntra & Flipkart Fashion.
In March this year, Myntra said that it achieved earnings before interest, taxes, depreciation and amortisation (Ebitda) profitability in the last two quarters of calendar year 2023.
The online fashion retailer’s total expenses decreased to Rs 5,123 crore from Rs 5,290. The company reduced its expenditure on purchase of materials by 8 per cent to Rs 1,996 crore from Rs 2,166 crore, while its other expenses increased to Rs 2,235 crore from Rs 2,321 crore.
The e-commerce company’s advertising expenses declined by nearly 5 per cent to Rs 1,677 crore, while employee benefit expenses increased by 8 per cent to Rs 800 crore. In July last year, the company laid off around 50 employees, with the in-house brands vertical being the most affected.
