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Exclusive: boAt cuts losses by 47% in FY24, revenue holds steady at Rs 3,122 Cr

EntrackrEntrackr · 1y ago
Exclusive: boAt cuts losses by 47% in FY24, revenue holds steady at Rs 3,122 Cr
Medial

The consumer electronics company boAt is set to report flat growth in the fiscal year ending March 2024. However, the Gurugram-based firm has managed to narrow its losses by 47% in the same period. According to an internal document accessed by Entrackr from the Registrar of Companies (RoC), boAt’s audited revenue decreased by 5% to Rs 3,122 crore in FY24 from Rs 3,285 crore in FY23. boAt derives most of its revenue from the sale of audio devices, including wired and wireless earphones, headphones, speakers, wired headphones, and soundbars. Sales of wearables and other accessories also contribute to the firm’s overall revenue. Despite a modest decline in revenue, the Warburg Pincus-backed firm managed to control its costs, resulting in a 47% reduction in losses, which dropped to Rs 53.5 crore in FY24 from Rs 101 crore in FY23. The performance of boAt’s audio business remained flat in H2 FY24, as per the document. In the wearables segment, a steep decline in average selling price, coupled with fierce competition, led to margin pressure. “The revenue of the audio business continues to do well and has increased by 5% in FY24. The EBITDA of the audio business increased to 9% in FY24.” the document further added. boAt also expects to increase its EBITDA margins during the ongoing fiscal year with multiple initiatives such as warranty cost optimization, reduction in advertisement and promotion cost, among others. Founded by Aman Gupta and Sameer Mehta in 2015, boAt has raised a total funding of $177 million to date from investors including Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Navi Technologies, and Fireside Ventures. According to IDC research, the Indian wearables market experienced its first-ever decline, dropping 10% in the June 2024 quarter to 29.5 million units. This decline is attributed to a surplus of unsold older models and a lack of innovation within the segment. The report highlighted that Oppo and OnePlus experienced the most significant year-on-year shipment decline, falling by 35.8%. Following them, Fire-Boltt saw a 24.3% decrease in wearable shipments, Noise reported a drop of 13.9%, and boAt experienced a 9.8% YoY decline.

Paper Boat posts Rs 585 Cr revenue in FY24; cuts losses by 48%

EntrackrEntrackr · 11m ago
Paper Boat posts Rs 585 Cr revenue in FY24; cuts losses by 48%
Medial

Hector Beverages owned Paper Boat, which manufactures soft drinks and beverages, saw its operating scale grow by a modest 16% year-on-year growth in the fiscal year ending March 2024. However, the A91 Partners-backed firm improved its bottom line by cutting its losses by 48% in the same period. Paper Boat’s revenue from operations increased to Rs 585 crore in FY24 from Rs 504 crore in FY23, its financial statement sourced from the Registrar of Companies (RoC) shows. In the previous fiscal year, it recorded more than 50% jump in its scale. Launched by former Coca-Cola executives Neeraj Kakkar and Niraj Biyani, Paper Boat sells packaged juices, coconut water, traditional Indian snacks, and dry fruits. Trade (manufactured by third-parties) of these products formed 52% of the operating revenue which increased by 16% to Rs 304.3 crore in FY24 from Rs 261.8 crore in FY23. Its own manufactured products accounted for the remaining 48% of operating revenue. This income also grew 15.7% to Rs 278 crore in FY24. The 11-year-old company earned additional Rs 10 crore from interest income which took its total revenue to Rs 595 crore in FY24. On the expense side, cost of materials dominated by accounting for 63% of the expense. This cost increased by 6.4% to Rs 404 crore in the last fiscal year from Rs 380 crore in FY23. Employee benefit expenses grew by 22% to Rs 66.70 crore in FY24. Advertising, finance and other expenses added another Rs 171 crore. Overall, Paper Boat’s total expense increased 7.2% to Rs 642 crore in the last fiscal year. In the end, Paper Boat managed to decrease its losses by 48% to Rs 47 crore in FY24 from Rs 90.5 crore in FY23. Its ROCE and EBITDA margin stood at -15.45% and -5.63%, respectively. On a unit basis, it spent Rs 1.1 to earn a rupee of operating revenue in FY24. The Bengaluru-based company reported cash and bank balances of Rs 168 crore along with current assets of Rs 305 crore in FY24. According to TheKredible, Paper Boat has raised Rs 1,030 crore ($143 million) in funding so far, with key investors including GIC (Lathe), Peak XV, Sofina Ventures, and A91 Partners. GIC holds over 25% of the company’s stake, while Sofina and Peak XV each control more than 18%. Paper Boat, which entered the market with a fresh approach and offerings, has struggled to convert that initial promise into results. Even as it has continued to innovate and adapt, the search for profitability even 11 years after it started operations is a reason to worry, even as it has come close now. The other worrying aspect of the business is the complete change in market dynamics in the form of quick commerce, modern trade, e-commerce and more, which should affect margins at Paper Boat much more. The firm has done well to survive even as many other startups in the space struggled and folded up or were acquired. Could Paper Boat surprise skeptics once again? One has to wonder, consider the unbelievably high clutter in the market today, and the much more demanding valuations from the category per se.

IPO-bound boAt elevates Gaurav Nayyar as CEO

EntrackrEntrackr · 27d ago
IPO-bound boAt elevates Gaurav Nayyar as CEO
Medial

**IPO-bound boAt elevates Gaurav Nayyar as CEO** Nayyar, who previously served as Chief Operating Officer, steps into the CEO role at a time when boAt has returned to profitability and received regulatory clearance for its much-awaited IPO. Imagine Marketing, the parent company of boAt, has elevated Gaurav Nayyar to Chief Executive Officer as the company gears up for its next stage of growth and a public listing. Nayyar brings more than two decades of strategic and operational experience, including eight years as a partner at Bain & Company before joining boAt three years ago. Together with the founding team, he has helped drive the company’s operational execution and business performance. Co-founder Sameer Mehta, who led boAt as CEO in recent years, will now focus on long-term strategy as Executive Director. Co-founder Aman Gupta will retain his role as Non-Executive Director. The leadership change comes on the back of boAt's strong performance in FY25, as the company posted a net profit of Rs 60 crore compared to a loss of Rs 74 crore in the previous year. This turnaround was driven by cost control, resilient audio product sales, and growth in international markets, despite a contraction in its wearables division. boAt's total revenue for FY25 stood at Rs 3,098 crore, of which India contributed the majority, and international revenue grew 44 percent year on year. boAt is now set to become the first Indian D2C electronics brand to go public after receiving SEBI’s approval for its IPO. The upcoming public offer is expected to raise Rs 2,000 crore, with a fresh issue component of Rs 900 crore, and places the company’s valuation near Rs 13,000 crore, as per reports.

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