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After Rs 215 Cr profit in FY22, Molbio reports Rs 3 Cr loss in FY23

EntrackrEntrackr · 1y ago
After Rs 215 Cr profit in FY22, Molbio reports Rs 3 Cr loss in FY23
Medial

Healthcare diagnostics firm Molbio achieved unicorn status after a $85 million funding round led by Temasek in September 2022, but its success was short-lived, lasting only through the pandemic. Molbio’s revenue plummeted 74%, from Rs 1,272 crore in FY21 to Rs 332 crore in FY23. Significantly, the company slipped into losses in FY23 and posted a loss of Rs 3.4 crore in the same period as compared to Rs 215 cr profit in FY22. On a year-on-year basis, the firm, also the first ever Unicorn from Goa saw a 57% decline in its revenue to Rs 332 crore in FY23 from Rs 776 crore in FY22, its annual financial statement sourced from the RoC shows. Truenat, the flagship product of Molbio Diagnostics, provides a real-time IoT-enabled testing kit for over 30 diseases. The sale of Truenat, Micro PCR workstations, reagent kits, and cartridges were some major avenues for the company’s collections. Truenat is mostly relevant for the diagnosis of Tuberculosis. The Goa-based firm also made Rs 5 crore from interest and gain on financial assets tallying its overall revenue to Rs 337 crore in FY23. For the diagnostic firm, the cost procurement of raw materials and medical components accounted for 44% of the overall expenditure. In the line with the scale, this cost decreased by 47.4% to Rs 143 crore in FY23. Molbio’s spending on employee benefits, traveling, legal, advertising cum promotional, freight, and other overheads took the overall cost to Rs 328 crore in FY23 from Rs 486 crore in FY22. The 57% decline in scale and the pressure of fixed costs pushed Molbio into the red and it reported a loss of Rs 3.4 crore in FY23. This is a significant downturn compared to the Rs 215 crore profit posted by the firm in FY22. Its ROCE and EBITDA margin worsened to 2% and 14.5%, respectively. On a unit level, it spent Rs 0.99 to earn a rupee in FY23. The Goa-based company has raised Rs 970 crore to date. According to the startup data intelligence platform TheKredible, its promoters through Exxora Trading LLP are the largest stakeholders with 41.7% shares followed by Motilal Oswal which commands 12.96%. Molbio claims that it closed FY24 with Rs 850 crore in revenue and has plans to strengthen its global presence this fiscal, along with launching new products in the Indian market. With these initiatives, it targets a revenue of Rs 1,200 crore and plans to raise around Rs 2,200 crore to Rs 2,400 crore via public listing in the ongoing fiscal year (FY25). FY23-FY24 FY23 FY24 EBITDA Margin 48% 14.5% Expense/₹ of Op Revenue ₹0.63 ₹0.99 ROCE 44% 2% Large fundraising plans along with growth ambitions are par for the course for a firm that has taken the kind of hits Molbio has. It might not find it as simple to convince investors it can execute, especially in a market where both regulations and perceptions towards portable testing kits are changing, even as Truenat itself remains relevant thanks to the wide prevalence of tuberculosis and its variations even today. Cost pressures from other, more low cost options is just one side of the market, even as its own plans to expand to other disease diagnostics need to show real progress fast.

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Infra.Market posts Rs 11,846 Cr gross revenue in FY23; remains profitable

EntrackrEntrackr · 1y ago
Infra.Market posts Rs 11,846 Cr gross revenue in FY23; remains profitable
Medial

Construction goods and services platform Infra.Market maintained its growth trajectory with over 9X surge in gross scale during the last two fiscal years, rising from Rs 1,240 crore in FY21 to Rs 11,846 crore in FY23. Despite the hyper-growth, the Mumbai-based company has remained profitable for the past several fiscal years. While the firm’s profit dipped nearly 17% in FY23, Infra.Market’s gross revenue surged 90% to Rs 11,846 crore in the said fiscal year from Rs 6,236 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies show. Infra.Market sells construction materials, infrastructure goods, and technical equipment which accounted for over 96% of its total operating revenue. Collections from these verticals grew nearly 89% to Rs 11,383 crore in FY23 from Rs 6,002 crore in FY22. The company has over 4,000 retail stores with more than 25 exclusive brand outlets across 22 states which is backed by over 100 dedicated manufacturing units. The cost of procurement of materials formed 86% of the overall expenditure. This cost surged 82.1% to Rs 9,974 crore in FY23. As the company hired aggressively to keep up with the growth, its employee benefits grew around 2X to Rs 279 crore in FY23. Infra.Market freight, legal-professional, power-fuel, information technology, and other overheads pushed its total expenditure up by 91.6% to Rs 11,607 crore in FY23 from Rs 6,058 crore in FY22. Check TheKredible for the detailed expense breakup. The notable growth and controlled cost helped Infra.Market to maintain profits which stood at Rs 155 crore during the previous fiscal year. Its ROCE and EBITDA margin stood at 15% and 5.7%, respectively. On a unit level, it spent Rs 0.98 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin 6% 5.7% Expense/₹ of Op Revenue ₹0.97 ₹0.98 ROCE 10% 15% Infra.Market has raised over $500 million across rounds in a mix of equity and debt. According to the startup intelligence data platform TheKredible, Tiger Global is the largest external stakeholder with 21.33% stake followed by Accel and Nexus Ventures which command 16.87% and 8.46% shares, respectively. Head to TheKredible to see the complete shareholding. In the B2B e-commerce (industrial supply) business, Infra.Market competes with the likes of Zetwerk, OfBusiness and Moglix. Zetwerk’s gross revenue from operations grew 130% to Rs 11,448.6 crore in FY23 with a loss of Rs 108 crore. OfBusiness emerged as the largest player in this space with Rs 15,342 crore revenue and Rs 463 crore profit while Moglix reported Rs 4,595 crore in revenue and Rs 193 crore loss in the last fiscal year. With all key players achieving significant balance sheet size on the back of positive PAT or small losses, the segment is set to consolidate, with the possibility of smaller players being absorbed by the top 3 or 4. The category as a whole has enough space to grow, considering the small size of the organised sector and the many emerging opportunities from India’s push to be a manufacturing hub. Players will be willing to bide their time before they seek margin improvement, as they strengthen their positions in their key segments. Be it Zetwerk in say, renewable energy, or construction industry for another etc. Comfortably placed among the top 3, Infra.Market can be expected to continue to deliver healthy topline growth on the back of a fast growing economy in India. Faster bottomline growth or better margins will require a lower share for procurement of materials, something that we believe will not happen quickly.

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