SUMMARY
- ProcMart profits declined by 56.5% to Rs 73 lakh in FY24 compared to the previous year’s profit of Rs 1.68 crore.
- The company’s total revenue for FY24 amounted to Rs 624.3 crore up against Rs 208 crore in FY23.
- Its total expenses increased by 205.6% to Rs 623.4 crore in FY24 from Rs 204 crore in FY23.
ProcMart, a B2B procurement marketplace, has seen its gross merchandise value (GMV) grow fivefold in FY23 and FY24, in comparison to FY22. Despite this impressive growth, the company encountered a significant decline in profitability, experiencing a 56.5% reduction in profit margins.
During FY24, ProcMart’s gross revenue surged by over 200%, reaching a total of Rs 621.5 crore from Rs 206.07 crore in FY23, as per the company’s consolidated financial statements sourced from the Registrar of Companies (RoC).
ProcMart’s primary business activities revolve around the trading of industrial automation, electrical, mechanical, electronics, IT items, abrasives, fasteners, safety & security items, and various tools & consumables. These product sales accounted for 98% of the company’s total gross revenue in the latest fiscal year.
Additionally, ProcMart offers business procurement assistance services, which contributed to the remaining 2% of its gross merchandise value during the same period. The company’s total revenue for FY24 amounted to Rs 624.3 crore, including an additional Rs 2.79 crore from interest and gains on financial assets.
The cost of materials emerged as the largest expense category, representing 93.4% of the total expenses, which escalated by 216.3% to Rs 582 crore in FY24. Moreover, 3% of its total expenses went towards employee benefits, which amounted to Rs 19 crore during FY24.
Other operational expenses, including transportation, legal & professional, rent, etc., increased by 205.6% to Rs 623.4 crore from Rs 204 crore in FY23.
Despite this rapid expansion, ProcMart managed to maintain a slight profit margin, with profits declining by 56.5% to Rs 73 lakh in FY24 compared to the previous year’s profit of Rs 1.68 crore. However, the company did achieve positive operating cash flows, with a total of Rs 15.81 crore crore during the year under review.
ProcMart’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin and return on capital employed (ROCE) stood at 1.33% and 5.45%, respectively. On a unit basis, the company spent Rs 1 to earn a rupee of operating revenue in the latest fiscal year.
To date, ProcMart has successfully secured over $40 million in funding across three rounds. Its most recent funding round, which concluded in April, saw the company raise $30 million in funding, co-led by Fundamentum and Edelweiss Discovery Fund. The company’s valuation has been estimated at around Rs 724 crore or $88 million (post-money valuation).
