Myntra ends FY22 with revenue of Rs 3,610 Cr and a loss of Rs 597 Cr

• ByStartupStory     |    October 27, 2022

The size of Myntra in the most recent fiscal year shows its status as India’s biggest fashion-focused e-commerce platform. The company, which is owned by Walmart, reached a revenue milestone of Rs 3,680 crore in the fiscal year that ends in March 2022.

According to the company’s consolidated annual financial records filed with the Registrar of Companies, Myntra’s operating revenue increased 45.5% to Rs 3,501 crore in FY22 (RoC). Additionally, it generated a non-operating income of Rs 108.7 crore from services like electronic gift cards, royalties, sublease income, and others, bringing its total receipts to Rs 3,610 crore.

Myntra’s main sources of income were its marketplace and logistics services, which made up roughly 46% and 42.8% of its operational revenue, which increased by 18.5% and 91.6%, respectively, to Rs 1,610 crore and Rs 1,498 crore in FY22. From Rs 195 crore in FY21 to Rs 345 crore in FY22, its revenue from advertising services increased by 77%. The company’s largest cost centre in terms of expenditures, accounting for roughly 40% of total yearly spending, is logistics. From Rs 1,066 crore in FY21 to Rs 1,680 crore in FY22, this expense increased by 57.6%.

Another significant expense during the previous fiscal year was advertising and promotion costs, which made up about 31% of overall spending but increased 69% to Rs 1,298 crore in FY22. In FY22, spending for employee benefits and outsourced labour rose by 12.0% and 37.7%, respectively, to Rs 521 crore and Rs 129 crore. Significantly, their employee benefits cost includes Rs 139 crore in equity-settled ESOP charges. In addition, the company spent an additional Rs 90 crore and Rs 63.8 crore on after-sales services (customer support services), which increased by 53.8% and 32.4%, respectively, over the previous fiscal year.

In addition, Myntra’s overall spending increased by 45.5% to Rs 4,207 crore in FY22 from Rs 2,891 crore in FY21. An increase in non-operating income of 83.6% helped the corporation contain losses to some extent even if operating revenue and total expenses increased at the same rate. In comparison to the Rs 429 crore reported in FY21, Myntra’s losses jumped by 39% to Rs 597 crore in FY22.In FY22, the company’s EBITDA margin declined by 272 BPS to -15.28%. In terms of operating revenue per unit, the Bengaluru-based business spent Rs 1.2 in FY22.

The organisation has developed the types of procedures, brands, and execution capabilities shown by the increase of over 45%. But competition from platform companies like Reliance’s Ajio as well as stand-alone brands is far from decreasing; it is expanding. Strong evidence suggests that new user growth is also slowing down across the digital space, which makes it even more important for Myntra to pay closer attention to indicators like revenue per user.

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