Myntra turns in a profit in FY24, revenue jumps 15% to Rs 5,122 crore
Myntra posted a net profit in FY24 from a net loss a year ago. This turnaround was driven by increased revenue and a reduction in overall expenses.
The Bengaluru-based company reported a net profit of Rs 31 crore for fiscal year 2024, a significant improvement from the net loss of Rs 782 crore in the previous year. Operating revenue grew by 15% to Rs 5,122 crore from Rs 4,465 crore, per regulatory filings.
Myntra, which entered quick commerce last week, has been working on reducing the cost of returns which has played a key role in reducing losses. Returns represent a significant expense for fashion businesses, where return rates typically range from 30-40%. The company has been discouraging returns by offering discounts and other benefits.
The company, which sells apparel, accessories and footwear among other products, generated Rs 52 crore in non-operating revenue, mainly from royalty income, raising its total revenue to Rs 5,174 crore.
“Profitability is not coming because we are cutting costs somewhere, or because we are leaving opportunities for growth on the table. They're coming just because we have the size and we have the leverage and the technology to really be able to look at profitability without compromising on any growth left on the table,” chief executive Nandita Sinha told ET in an interview on May 28. In addition to leading Myntra, Sinha is also in charge of Flipkart Fashion.
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