Metalbook, the full-stack metal supply-chain platform, reported a sharp jump in revenue for the fiscal year ending March 2024, crossing the Rs 796 crore mark. But despite the strong top-line growth, its losses more than doubled, signaling rising costs and operational challenges.
Revenue Soars, But So Do Losses
Metalbook’s gross revenue, also known as gross merchandise value (GMV), surged 76% to Rs 796 crore in FY24 from Rs 452 crore in FY23, as per its filings with the Registrar of Companies (RoC). The growth was driven by increased transactions across its platform, which facilitates procurement, inventory liquidation, logistics, and credit services for businesses.
But the rising scale came at a cost. The company’s net loss expanded 2.8 times, reaching Rs 17 crore in FY24 compared to Rs 6 crore in the previous fiscal year. With total expenses shooting up by 77.78% to Rs 816 crore, the firm spent Rs 1.03 to earn every rupee of revenue—pointing to continued operational inefficiencies.
Breaking Down the Cost Surge
The biggest cost driver for Metalbook remained the procurement of materials, which accounted for a staggering 96% of overall expenditure. This cost jumped by 75.34% to Rs 782 crore in FY24, nearly mirroring revenue growth.
Other notable expense categories saw significant spikes as well:
- Employee benefits: Increased by 90.48% to Rs 16 crore, reflecting expansion in workforce and compensation.
- Bad debt provisions: Stood at Rs 3.7 crore, likely due to overdue payments or defaults.
- Operational expenses: Including legal, technology, and travel costs, surged to Rs 14.3 crore.
The firm’s return on capital employed (ROCE) and EBITDA margin stood at -9.65% and -1.27%, respectively, further highlighting financial strain.
Cash Position and Financial Stability
Despite rising losses, Metalbook’s liquidity position remained relatively stable. The company’s current assets were valued at Rs 193 crore as of the latest fiscal year, which included Rs 61 crore in cash and bank balances.
This financial cushion could provide some buffer as the firm looks to navigate its widening losses and work toward operational profitability.
Expanding Global Presence
Founded in 2021, Metalbook has quickly positioned itself as a key player in the metal supply chain ecosystem. The company claims to collaborate with over 500 manufacturers, dealers, and suppliers, including major names such as ArcelorMittal Nippon Steel, Tata Steel, and JSW. Its operations span across 16 countries, reflecting an ambitious global footprint.
With a fast-growing network and a diversified service model, Metalbook is looking to solidify its market position despite the ongoing financial pressures.
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