Myntra, Flipkart’s fashion e-commerce platform, achieved a remarkable recovery in FY24, reporting a profit of ₹31 crore, a significant shift from the ₹782 crore loss it faced in FY23. This marks a historic turnaround for the company, underpinned by revenue growth and strategic cost optimizations.
Revenue and Growth Highlights
Myntra’s operational revenue increased by 14.71%, reaching ₹5,121.8 crore in FY24, compared to ₹4,465 crore in the previous fiscal year. This growth was driven by:
- Logistics Services: Contributing ₹2,439 crore (47.6% of revenue), marking a 22.5% growth.
- Advertising Revenue: A 33.07% surge, totaling ₹712.3 crore.
- Marketplace Services: Stable at ₹1,774.6 crore.
The company also earned ₹51 crore from non-operating sources, primarily royalty income, bringing its total revenue to ₹5,173 crore.
Expense Optimization
Myntra’s overall costs decreased by 3.16%, dropping to ₹5,123 crore in FY24. Notable savings include:
- A 7.82% reduction in material costs (₹1,996.4 crore).
- A 4.63% cut in advertising expenses (₹1,677.4 crore).
However, employee benefit costs rose 7.74% to ₹800 crore, reflecting investments in talent retention and expansion. Other overheads, including IT and finance costs, added ₹650 crore.
Strategic Moves and Future Outlook
Led by CEO Nandita Sinha, Myntra has also ventured into quick commerce with the M-Now feature, promising 30-minute delivery of fashion and beauty products. This innovation highlights its commitment to enhancing customer convenience.
After 16 years of operations, Myntra’s entry into profitability is a significant milestone. The key challenge ahead lies in balancing growth ambitions with cost discipline, especially in advertising and logistics. The competitive landscape, including disruption by offline players like Zudio, further underscores the need for strategic agility.
