Tata 1mg scale grows in FY23 but losses more than double on one-time expense

economictimes.indiatimes.com:

Tata 1mg has reported a 160% year-on-year jump in its operating revenue for the year ended March 31 to Rs 1,627 crore. However, the company's net loss more than doubled to Rs 1,254.9 crore in FY23, documents sourced from business intelligence platform Tofler showed. A significant chunk of the increase in Tata 1mg's loss was attributable to a Rs 668.1 crore one-time expense.

The expense was recorded against a loss on remeasurement of a financial liability designated at fair value through profit or loss (FVTPL). This led to the company’s miscellaneous expenses ballooning to Rs 906.2 crore in FY23 from Rs 241.4 crore in FY22. During FY23, sale of medicines accounted for nearly 80% of the company’s operating revenue, while the remainder was attributable to services such as diagnosis, consultation and testing.

Tata 1mg also earns revenues from advertising on its platforms. Revenue from sale of products stood at Rs 1,290 crore in FY23, more than double the previous year, while income from services and other operations totalled Rs 337 crore. On the expenses front, the epharmacy’s wage bill increased 58% on year to Rs 313.87 crore.

The epharmacy was hived off from Healthkart in 2015 and Tata Digital acquired a majority stake in the company in 2021. Tata 1mg’s FY23 financials were first reported by online news portal Entrackr. The widening of the online healthcare company’s loss adds to the woes of Tata Digital, which saw its other consumer business, BigBasket, also bleeding during FY23.