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McCain India crosses Rs 1,200 Cr revenue in FY24; profit shrinks 29%

EntrackrEntrackr · 3m ago
McCain India crosses Rs 1,200 Cr revenue in FY24; profit shrinks 29%
Medial

McCain India’s revenue from operations increased by a modest 3% YoY growth to Rs 1,214 crore in FY24, as per its standalone financial statements sourced from the Registrar of Companies (RoC). Among fried snack brands in India, McCain is a major player. The brand has expanded its portfolio to include a range of options, with revenues surpassing Rs 1,200 crore in FY24. Revenue from operations was Rs 1,172 crore in FY23. Income from the sale of its fried products was the sole revenue for McCain. It sells its products through retail, foodservice partnerships, and digital channels such as BlinkIt, Swiggy Instamart, and Zepto. The company also added Rs 31 crore, mainly from interest on deposits, resulting in an overall revenue of Rs 1245 crore in FY24, compared to Rs 1189 crore in FY23. Material procurement remained the largest cost driver, accounting for 43.8% of total expenses, rising to Rs 493 crore in FY24. Employee benefit expenses grew by 19%, reaching Rs 100 crore in FY23. Advertising cost surged by 63% to Rs 88 crore in FY24. Total expenditure was Rs 1,125 crore in FY24, up from Rs 1,020 crore in FY23. Net profits reduced by 29.4% to Rs 89 crore in FY24, compared to Rs 126 crore in FY23. Its ROCE and EBITDA margin stood at 15.28% and 4.58% respectively. It spent Rs 0.93 per rupee earned in FY24.

Zoomcar’s scale shrinks 19% in Q3 FY24, improves bottom line

EntrackrEntrackr · 1y ago
Zoomcar’s scale shrinks 19% in Q3 FY24, improves bottom line
Medial

Zoomcar has announced its financial results for the quarter ending December 2023 or Q3 FY24. The company’s scale slipped nearly 19% on a yearly basis but it also turned profitable during the period. The improvement in the bottomline is the result of a one-time gain. We will detail this later in the story, for now, let’s decode its revenue streams and operations. The NASDAQ-listed company’s net revenue declined 18.8% to $2.42 million (Rs 20 crore) during the third quarter of the ongoing financial year in contrast to $2.98 million (Rs 24.7 crore) recorded in Q3 FY23, as per the company’s filings sourced from the US’ Securities and Exchange Commission. “Our third fiscal quarter results capped a strong performance in our ongoing efficiency efforts as we achieved record gross profit and non-GAAP contribution profit while also paving the way for meaningful revenue growth over the next several quarters,” said Greg Moran, CEO and co-founder of Zoomcar. In December, Zoomcar inked a merger agreement with Innovative International Acquisition Corp and subsequently became a publicly listed entity. The decade-old company operates across more than 50 cities globally (majorly in India) and has over 3 million active users and over 25,000 vehicles registered on its marketplace. Coming to expenses, operating cost of the company (excluding G&A costs) shrank 24% to $2.2 million (Rs 18.26 crore) in Q3 of FY24 from $2.9 million (Rs 24 crore) in the same quarter of the last fiscal year. As per the company, the decrease in operating expenses was a result of a decrease in sales and marketing costs and technology and development costs. At the end, Zoomcar posted $14.4 million (Rs 119.52 crore) profits as compared to $8.7 million (Rs 72.21 crore) net loss in the same period last year. This improvement was primarily due to a one-time gain of $28.9 million from a deSPAC transaction, which involved financial instrument conversions at fair market value. Additionally, the company enhanced its gross margin profile and saw a decrease in host accident-related reimbursements during the period. As per the filings, adjusted EBITDA loss of the company improved to $4 million from $5.2 million in the same period last year, this could be attributed to the cost reduction measures the company had undergone during the period. As of December 31, 2023, the company had total negative working capital of $26.2 million, including $6.1 million in cash. The Indian entity of Zoomcar saw its revenue decline for the first time in FY23. As per its regulatory filing in India, the company’s revenue from operations declined to Rs 69 crore ($8.3 million) in FY23 from Rs 95 crore ($11.4 million) in FY22.

Allen nears Rs 3,500 Cr revenue in FY24, profit shrinks 44%

EntrackrEntrackr · 7m ago
Allen nears Rs 3,500 Cr revenue in FY24, profit shrinks 44%
Medial

Offline coaching institutes have been finding it tough to scale their profits, and Allen Career Institute is no exception. The Bodhi Tree-funded firm reported a 44% year-on-year decline in profit for the fiscal year ending March 2024. In the second half of this story, we’ll delve into the expense patterns that led to this decline. For now, let’s focus on its revenue and sources. Allen’s revenue from operations increased 42% to Rs 3,244.7 crore in FY24, as compared to Rs 2280.8 crore in the previous fiscal year, its financial statement filed with the Registrar of Companies shows. This growth was driven by a 42.2% increase in service income, reaching Rs 3,215 crore, which accounted for 99% of the revenue, and a 51% rise in product sales to Rs 8 crore. Income from product sales vertical grew by 51.4% year-on-year in the last fiscal year. With a 98.9% increase in interest income, the company’s total revenue reached Rs 3,473.2 crore in the last fiscal year. Employee benefit costs were the largest expense for the company, rising 68% to Rs 1958 crore in FY24. The cost of materials increased by 74.2% to Rs 123.5 crore. However, its marketing expenses spiked by 2.3X to Rs 117.9 crore. Overall, the company’s total expense surged 63% to Rs 3252 crore in FY24 from Rs 1993 crore in FY23. Due to higher spending and relatively lower revenue growth, the company’s profit declined by 44%, falling to Rs 135.9 crore in FY24 from Rs 243.7 crore in FY23. While its EBITDA remained stable at Rs 629.8 crore, margins declined to 18.13% in the last fiscal year. Further, the firm’s ROCE declined to 9.26% from 14.7% in FY23. On a unit basis, Allen spent Re 1 to earn a rupee of operating revenue in the fiscal year ending March 2024. Allen's financial position remained stable, with total assets rising by 10.8% to Rs 5,759 crore and cash and bank balances improving by 19.8% to Rs 1,958 crore. Current assets also grew by 8.2% to Rs 2,795 crore, while capital employed expanded by 15.9% to Rs 3,630 crore. While Allen maintained revenue growth and a stable financial position, the significant rise in costs and a drop in margins underline the challenges of scaling in the offline coaching industry. The decline in profitability signals a need for further optimization as the company navigates an evolving education sector landscape. Allen Career Institute is reportedly in early discussions to acquire Unacademy amid a 31% year-on-year decline in admissions to Kota-based institutes in 2024. The waning popularity of the city-based coaching culture is set to impact the top and bottom lines of Allen, and FIITJEE(FY25). However, they remain better positioned compared to their online counterparts, Byju's and Unacademy. FIITJEE, Allen's closest competitor, operates at approximately one-fourth of Allen's scale. While FIITJEE has yet to disclose its FY24 financials, it reported a 21% year-on-year revenue growth to Rs 542 crore in FY23. In the same fiscal year, Allen's income stood at Rs 2,277 crore. Another competitor, Aakash, which was acquired by BYJU'S, anticipated crossing the Rs 3,000 crore revenue mark in FY23. However, its audited financials for FY23 and FY24 are yet to be released. Allen’s PE deal in some ways marked the peak of the edtech boom, as the last of the large firms that had held out until then before taking the plunge. It is showing signs of the same, with pressure to spend their way to some sort of leadership, even at the cost of margins that the firm always had before the funding. The Unacademy deal, if it works out, will be yet another investor-backed deal no doubt, to beef up the balance sheet size. Will that really be the solution the firm is looking for to combat future risks? One has to wonder, considering just how fast the market is evolving, and the challenges of integrating such a firm within the Allen culture.

EV maker Ampere’s scale shrinks 46% in FY24; losses multiply 11X

EntrackrEntrackr · 6m ago
EV maker Ampere’s scale shrinks 46% in FY24; losses multiply 11X
Medial

After achieving two-fold growth in FY22 and FY23, electric vehicle maker Ampere experienced a 46% decline in revenue in FY24, with scooter sales plummeting by nearly 60%. Moreover, the company's losses widened more than 10X, driven by the significant decline in scale. Ampere's revenue from operations decreased to Rs 612 crore in the last fiscal year, from Rs 1,124 crore in FY23, its consolidated financial statements accessed from the Registrar of Companies show. Ampere, a brand under Greaves Electric Mobility, focuses on manufacturing electric scooters and three-wheeled vehicles. In FY24, scooter sales, which contributed 70.5% of the company's total operating revenue, declined by 59% to Rs 432 crore. In contrast, sales of three-wheelers surged 2.5X, reaching Rs 178 crore in the last fiscal year. Ampere also added Rs 2 crore from scrap sales and Rs 29 crore from non-operating activities, tallying the overall revenue to Rs 641 crore in FY24, compared to Rs 1,159 crore in FY23. For the EV maker, the cost of procurement of materials formed 61% of the overall expenditure. To the tune of scale, this cost decreased by 40% to Rs 526 crore in FY24. Ampere hired more workforce in FY24, which resulted in its employee benefits increased by 48.5% to Rs 101 crore. Its advertising, legal, warranty, contracting, and other overhead expenses brought the total cost to Rs 857 crore in FY24, down from Rs 1,172 crore in FY23. For a detailed cost breakdown, head to TheKredible. Caveat: We have excluded the exceptional item amounting to Rs 477 crore for calculating net loss as it is a one-time cost and non-operative. Ampere's deteriorating scale and rising employee benefit costs led to a nearly 11X surge in losses, reaching Rs 215 crore in FY24 compared to Rs 20 crore in FY23. Its ROCE and EBITDA margins declined sharply to -45.4% and -27.46%, respectively. The company's expense-to-earnings ratio stood at Rs 1.40. At the end of FY24, Ampere reported total current assets of Rs 352 crore, including cash and bank balances of Rs 62 crore. While it is pretty clear that the onslaught from Ola Electric and legacy players like Hero, Bajaj and TVS has put a brake on growth for Ampere, going by the parent firm's plans for an IPO for the mobility division, it does seem to have the backing for the long haul. Would it still be as comfortable if the planned IPO does not happen? That could mean some pretty tough decisions soon, although the firm has the experience and the pedigree to course correct and find a way out of the hole it has dug itself into.

Exclusive: Gaana acquired by Radio Mirchi’s parent for Rs 25 lakh

EntrackrEntrackr · 11m ago
Exclusive: Gaana acquired by Radio Mirchi’s parent for Rs 25 lakh
Medial

After a potential merger and acquisition talks with Airtel Wynk fell through, Times Internet and Tencent-backed Gaana consolidated with Times Group’s listed subsidiary Entertainment Network India Limited (ENIL) in December 2023. However, the deal somehow managed to bypass major media attention as of now. Significantly, Gaana was acquired for Rs 25 lakh, as per ENIL’s filings with the National Stock Exchange (NSE). ENIL is promoted by Bennett Coleman, and operates popular FM radio brand ‘Radio Mirchi’. For context, Gaana raised over $200 million in its lifetime, and was last valued at around $580 million, according to Entrackr’s data. Gaana’s consolidation with ENIL indicates that it’s a distress sale and the firm has given up on hopes of a third-party acquisition. The details of the acquisition are limited at the moment, and there is no clarity about Tencent’s holding in the 14-year-old platform. Entrackr’s queries sent to Times Internet and ENIL on Friday didn’t elicit any response. We will update the story in case they do. According to Entrackr’s data, Times Internet used to own a majority in Gaana whereas Tencent had around 35% stake until September 2020. To keep the platform up and running, Times Internet has also been injecting debt in Gaana at regular intervals. In July 2023, the music and podcast streaming platform received Rs 100 crore debt from Times Internet that eventually got converted into equity shares. Now, Times Internet has committed to inject up to Rs 10 crore debt in Gaana, as per its regulatory filings with the RoC this week. As per ENIL’s chief executive officer Yatish Mehrishi, the firm also invested Rs 15 crore in the first quarter of FY25. As the equity investments in India from its bordering companies aren’t allowed, Ganna received back-to-back debt rounds worth $90 million led by WeChat-owner Tencent in September 2020 and June 2021. The downfall of Gaana could also be ascertained from erosion of its scale which nosedived by over 80% to Rs 12.5 crore of revenue during the previous fiscal year (FY24), Mehrishi disclosed Gaana’s FY24 revenue numbers during investors’ call in May. After the acquisition, ENIL put Gana completely behind a paywall, and also doubled the subscription fee to Rs 599. These changes were reflected in its collection in the last quarter of FY24, which stood at Rs 9.5 crore. On the other hand, ENIL’s consolidated operating revenue shrank 25.79% Q-o-Q to Rs 113.46 crore but the Mumbai-based company slipped into red with Rs 5.45 crore losses in Q1 FY25. Gaana also went through a management rejig as it replaced its long time chief executive officer (CEO) Prashan Agarwal with Sandeep Lodha in mid-2021. Lodha also quit the firm in July 2023. At present, Gaana is being run by ENIL’s chief executive officer Mehrishi. Amidst the split of Times Group assets between Samir and Vineet Jain, Times Internet has been selling out its portfolio and incubated companies for the past three years. It recently sold its subsidiary ETMoney to 360 One (formerly IIFL Wealth) for about $44 million. This was the seventh subsidiary from which Times Internet took exit since 2021. In June, Amazon acquired the assets of MX Players from Times Internet. In February 2022, The Gurugram-based company sold MX TakaTak to ShareChat while DineOut was acquired by Swiggy in May 2022. In the same year, Times Internet sold its three companies MensXP, iDiva, and Hypp to e-commerce roll-up unicorn Mensa.

Cyber attack hits Safexpay in FY24: revenue shrinks 67%, losses double

EntrackrEntrackr · 4m ago
Cyber attack hits Safexpay in FY24: revenue shrinks 67%, losses double
Medial

Fintrackr All Stories Cyber attack hits Safexpay in FY24: revenue shrinks 67%, losses double Mumbai-based fintech company Safexpay faced a tough fiscal year in FY24, with its revenue dropping sharply by 67% after its payment gateway was hacked in October 2023. Meanwhile, the company's losses doubled during the same period. Safexpay's operating revenue declined by 67% to Rs 88.5 crore down from Rs 269.5 crore in FY23, as per its consolidated financial statement sourced from the Registrar of Companies (RoC). Safexpay operates as a fintech company providing payment gateway solutions, digital banking, and API-based payment infrastructure for businesses, enabling secure transactions, recurring payments, and multi-currency support across various payment methods. The steep decline in revenue was mainly due to a sharp reduction in payment gateway transaction volumes, which led to a 79.57% drop in related income. Notably, the company's payment gateway was hacked, leading to significant financial and reputational damage. According to media reports, the Thane Police are investigating a Rs 16,180 crore scam linked to the breach. On the cost side, Safexpay’s total expenses decreased by 52.41% to Rs 143 crore in FY24 from Rs 300.5 crore in FY23. Employee benefit expenses fell by 17.46% to Rs 26 crore, while payment gateway charges, the firm's largest cost component, dropped by 79.57% to Rs 48 crore. Due to a hack in its core payment gateway business, legal expenses surged 5.5X to Rs 11 crore, while bad loans increased nearly tenfold to Rs 16 crore. The company also incurred a cost of Rs 21 crore after hackers breached Safexpay’s account and siphoned off the funds. Despite cost-cutting measures, Safexpay struggled to offset revenue declines, causing its net loss to widen to Rs 44 crore in FY24, compared to Rs 22 crore in FY23. Its Return on Capital Employed (ROCE) and EBITDA margin deteriorated to -186% and -42.12%, respectively. On a unit level, the firm spent Rs 1.62 to earn a single rupee in FY24. The Mumbai-based company reported current assets worth Rs 77 crore in FY24 which included Rs 10.5 crore in cash and bank balance. According to TheKredible, Safexpay has raised a total of $6 million of funding to date having Ardor Advisors and Choithram International as its lead investors. The company’s founder owns 44% of the company. The hit that Safexpay is having to endure is the kind of blow that can be fatal. Especially in the fintech business where one could argue that credibility is worth a lot more than money in the bank in this case. Safexpay faces a battle for survival no doubt, and one would have to say that the odds are lengthening unless it can find a long-term backer.

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