Zetwerk reports six-fold rise in FY22 revenues at Rs 4,961 crore
- ByStartupStory | September 22, 2022
The company’s overall losses remain virtually the same at Rs 42 crore when non-cash costs for the employee stock ownership plan (ESOP) are included. Manufacturing services unicorn Zetwerk announced its FY22 audited results on Thursday. The company reported a six-fold growth in overall revenues from the prior year, totalling Rs 4,961 crore.
It earned overall revenues of Rs 835 crore and Rs 321.7 crore in both FY21 and FY20. The company’s overall losses remain virtually the same at Rs 42 crore when non-cash costs for the employee stock ownership plan (ESOP) are included. Zetwerk reported a total loss of Rs 41.2 crore for FY21 Zetwark’s co-founder and CEO, Amrit Acharya, gave ET two reasons for the rise in sales: the company’s consumer manufacturing segment and the expansion of its international clientele.
“Two elements are primarily driving our sales increase. The first is the growth in sales from international markets, which is mostly driven by the US. Our international revenues rose from 5% to 16% in the preceding fiscal year. It is growing faster than our domestic business. According to Acharya in an interview with ET, firms have been spending their profits over the previous year on infrastructure development and capital expenditures.
Consumer manufacturing sales currently account for 30% of Zetwerk’s total sales, with international business adding 16%. Additionally, the US market accounts for roughly 70% of the company’s international sales. According to the unicorn, its operational performance resulted in an EBITDA profit of Rs. 57 crores. Additionally, from 951 crores to 5,718 crores, the overall gross merchandise value (GMV) increased six-fold in FY22.
Established in 2018, Zetwerk is a regulated marketplace for contract manufacturing. Through a global network of small producers, the company works with commercial and consumer enterprises to make their items.
According to Acharya, the fundamental tendency is still that Indian companies seek to localise their manufacturing there. Indian manufacturers are being sought after by international companies aiming to diversify their supply chains away from countries like China.
Indian enterprises want to relocate their manufacturing there to rely less on imports. Additionally, according to Acharya, changes were made to the import and production policies and regulations in FY20 to reduce reliance on China. With an investment of Rs 2 lakh crore for 14 industries, including, among others, white goods, speciality steel, automotive, and auto components, the Indian government introduced the production-linked incentive (PLI) scheme in 2021.
Lowering import expenses and improving the cost-competitiveness of domestically manufactured goods were the objectives. Cement, metals, and renewable energy sources are still Zetwerk’s three main manufacturing industries.
As of September, Zetwerk has an open order book of Rs 9,750 crore that would be finished in FY23 and FY24. Acharya declined to provide the exact investment amount for the project, but the business plans to use its funds to build more captive plants to enhance its manufacturing capacity.
In December 2021, Zetwerk raised $210 million as part of its third major equity financing, which was led by Greenoaks Capital and valued the company at $2.7 billion. Zetwerk joined the exclusive group of unicorn companies in India earlier in 2021 after securing $150 million from D1 Capital, which valued the company at $1.3 billion.
The company revealed in June of this year that it had spent Rs 100 crore to acquire three companies to expand its vertical businesses in the oil and gas, aerospace, and infrastructure component industries.
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