Myntra, the fashion ecommerce giant owned by Flipkart, has successfully turned around its financial performance, reporting a net profit of Rs 30.9 crore for fiscal year 2024 (FY24). This marks a significant improvement from the previous fiscal year, when the company posted a loss of Rs 782 crore. The turnaround has been attributed to a combination of robust revenue growth and effective cost optimization strategies.
Revenue from operations for Myntra saw an impressive 14.7% increase, rising to Rs 5,121.8 crore in FY24, compared to Rs 4,465 crore in FY23. The largest portion of this revenue came from logistics services, which grew by 22.5% to reach Rs 2,439 crore. Advertising revenue also saw a significant rise of 33%, amounting to Rs 712.3 crore, while marketplace services remained steady at Rs 1,774.6 crore. Additionally, Myntra earned Rs 195.9 crore from other income streams and Rs 51 crore in non-operating revenue, largely from royalties.
The company’s strong performance in high-margin revenue streams, particularly advertising, played a crucial role in driving profitability. Despite the increase in revenue, Myntra succeeded in reducing its total expenses by 3.16%, bringing the figure down to Rs 5,123 crore from Rs 5,290 crore in FY23. Notably, material costs, the company’s largest expense, fell by 7.82% to Rs 1,996.4 crore, while advertising expenses decreased by 4.63% to Rs 1,677.4 crore. However, employee benefit expenses saw a rise of 7.74%, reaching Rs 800 crore, and additional overheads, including finance and IT costs, totaled Rs 650 crore.
Myntra has also ventured into the rapidly expanding quick commerce sector, launching its 30-minute delivery service, M-Now, for fashion and beauty products. Initially rolled out in Bengaluru, the service is expected to expand to other major cities such as Delhi, Mumbai, and Pune in the coming months. Nandita Sinha, CEO at Myntra, expressed that the M-Now service, in collaboration with various brands, will play a transformative role in reshaping India’s lifestyle shopping experience.
