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Moglix Reports Rs 4,964 Crore Revenue with Modest Growth in FY24

Moglix, a leading B2B e-commerce platform, has announced its financial results for the fiscal year ending March 2024, revealing a revenue of Rs 4,964 crore ($591 million). This marks a modest growth of 5.5% compared to the previous fiscal year, where the company experienced a remarkable 82.6% increase. Despite the slower growth rate, Moglix successfully reduced its losses by 16%, showcasing its efforts to improve operational efficiency.

Revenue Breakdown: A Closer Look

The revenue from operations for Moglix primarily stems from the sale of traded goods, which accounted for an impressive 98.98% of its total revenue. This segment saw a growth of 5.4%, reaching Rs 4,914 crore in FY24. The remaining revenue was generated from various sources, including commissions on online sales, IT services, factoring, and other allied services.

  • Revenue Sources:
    • Sale of traded goods: Rs 4,914 crore
    • Commissions and services: Remaining income

Moglix’s total revenue, including interest income and other non-operating earnings, climbed to Rs 5,309 crore ($632 million) in FY24. The Indian market was the primary contributor, accounting for 97.1% of the revenue, while the USA and Singapore contributed 2.7% and 0.16%, respectively.

moglix-b2b-ecommerce-revenue-report

Cost Management and Financial Performance

Operating on a cash-and-carry model, Moglix’s procurement costs represented a significant portion of its total expenses, accounting for 84%. In FY24, these costs rose by 4.4%, reaching Rs 4,620 crore, up from Rs 4,427 crore in FY23. The company also incurred expenses of Rs 218 crore on employee benefits and Rs 92 crore on shipping.

  • Expense Overview:
    • Total expenses: Rs 5,493 crore ($654 million)
    • Procurement costs: Rs 4,620 crore
    • Employee benefits: Rs 218 crore
    • Shipping: Rs 92 crore

Despite the flat growth, Moglix’s controlled costs and an increase in other income allowed it to reduce its losses to Rs 189 crore ($22.5 million) in FY24, down from Rs 225 crore ($26.8 million) in FY23. The company’s return on capital employed (ROCE) and EBITDA margin stood at -4.82% and -1.5%, respectively, indicating ongoing challenges in achieving profitability.

Investor Landscape and Future Outlook

Moglix has successfully raised a total of $440 million across various funding rounds, with Tiger Global being the largest external stakeholder, holding a 14.75% share. Other significant investors include Accel and Alpha Wave, with stakes of 14.26% and 13.35%, respectively. Co-founder and CEO Rahul Garg retains a 12.67% stake in the company.

The slowdown in growth raises concerns for Moglix, especially given its rapid expansion in previous years. While such decelerations are not uncommon for fast-growing firms, the company must navigate the challenges that come with scaling operations. Investors will be closely monitoring Moglix’s performance to understand the underlying factors contributing to this shift.

As Moglix continues to adapt to the evolving market landscape, its ability to manage costs and drive revenue growth will be crucial in determining its future trajectory.

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