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Porter reports Rs 2,734 Cr revenue in FY24; losses dip 45%

Entrackr · 3m

On-demand intra-city logistic company Porter has maintained its growth trajectory in FY24 as its revenue spiked 56%, and crossed the Rs 2,700 crore threshold. At the same time, the firm controlled losses by 45% and brought it under Rs 100 crore in the same period. Porter’s revenue from operations grew 55.9% to Rs 2,733.8 crore during the fiscal year ending March 2024, the company’s consolidated financial statements sourced from the Registrar of Companies (RoC) show. For context, Porter’s revenue shot up 2X to Rs 1,753.8 crore in FY23. Porter company provides a full-stack logistics platform to help businesses optimize their last-mile delivery operations. It generated 99% of its total operating revenue via the goods transportation services while the remaining came from platform fees and other operating activities. The firm also topped up Rs 32.64 crore from interest and gain on financial assets which took its overall revenue to Rs 2,766 crore in FY24. On the expenses side, fleet operator costs (including all vehicle-related and delivery personal costs) formed 82.8% of the total expenses. This cost grew 50% and stood at Rs 2,369 crore in FY24. Employee benefits expenses also went up 24.3% to Rs 237.36 crore during the same period. Significantly, the employee cost also includes employee stock compensation (ESOP) expenses worth Rs 6.69 crore. Advertising-promotions, information technology, and legal & professional fees were other major expenses of the company during the year. Adding to that, the total expenditure of the company inclined 45.7% to Rs 2,862 crore during FY24 from Rs 1,964 crore in the previous fiscal year. For the complete expense breakdown, head to TheKredible. Despite rising expenses, Porter managed to cut down its losses by 45% to Rs 95.7 crore during the year against Rs 174.6 crore in FY23. Its operating cash outflows also improved by 48.5 to Rs 96.7 crore during the year. Porter’s outstanding losses stood at Rs 771.5 crore as of FY24. As per TheKredible, the firm’s EBITDA margin improved by 638 BPS to -2.89% in FY24. On a unit level, Porter spent Rs 1.05 to earn a rupee of operating revenue during the previous fiscal year. FY23-FY24 FY23 FY24 EBITDA Margin -9.27% -2.89% Expense/₹ of Op Revenue ₹1.12 ₹1.05 ROCE -33.31% -21.36% Porter managed to grow its scale without any fundraise in FY24 and FY23. Its $100 million Series E round led by Tiger Global and Vitruvian Partners came in October 2021 (FY22). The firm reportedly turned unicorn in an internal round which also included secondary components. However, the Bengaluru-based company has yet to announce it officially. Being on the brink of profitability adds a lot of reassurance for present and future investors of course, although Porter remains in a market that is particularly competitive even now. The fading away of Dunzo has also helped no doubt, and Porter has done well to step in almost seamlessly for many users. Investor fatigue that is setting in for the logistics sector also means future competition from startups will be limited, allowing Porter and larger players in the segment to target margin improvements. Expect Porter and many other firms to gradually turn into the kind of boring and predictable profit churners that public markets love.