SUMMARY
- boAt’s audited income fell by 5% to Rs 3,122 crore in FY24 from Rs 3,285 crore in FY23.
- Its losses dropped 47% YoY to Rs 53.5 crore in FY24 from Rs 101 crore in FY23.
- The EBITDA for the audio division also rose to 9% in FY24.
Consumer electronics brand boAt is expected to report flat growth at the end of the fiscal year that concluded in March 2024. However, the company has succeeded in cutting its losses by 47% during the time period.
An internal document obtained from the Registrar of Companies (RoC), shows that boAt’s audited income fell by 5% to Rs 3,122 crore in FY24 from Rs 3,285 crore in FY23.
boAt’s primary source of income comes from the sales of audio products, including wired and wireless earphones, headphones, speakers, wired headphones, and soundbars. The sales of wearable devices and other related products also contribute to the company’s total earnings.
The company was able to manage its expenses, leading to a 47% reduction in losses, which decreased to Rs 53.5 crore in FY24 from Rs 101 crore in FY23.
The document also notes that boAt’s audio division saw no growth in the second half of FY24. In the wearable devices sector, a significant drop in the average selling price, along with intense competition, resulted in a pressure on margins.
As per the documents, the audio division continued to perform well, with a 5% increase in revenue in FY24. The EBITDA for the audio division also rose to 9% in FY24. The company is aiming to increase its EBITDA margins throughout the current fiscal year through various strategies, including optimizing warranty costs, reducing advertising and promotion expenses, among others.
Founded by Aman Gupta and Sameer Mehta in 2015, the Gurugram-based brand has secured a total funding of $177 million to date from investors such as Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Navi Technologies, and Fireside Ventures.
According to IDC research, the Indian wearables market saw its first-ever decline, dropping by 10% in the June 2024 quarter to 29.5 million units. This decline is attributed to an oversupply of older models and a lack of innovation in the sector.
The report also points out that Oppo and OnePlus saw the most notable decrease in their wearable shipments, falling by 35.8% YoY. Following them were Fire-Boltt, which saw a 24.3% decrease, Noise, which reported a drop of 13.9%, and boAt, which experienced a 9.8% decrease in wearable shipments.
