SUMMARY
- BigBasket saw a 6% increase in its operating revenue to Rs 7,884.5 crore in FY24 from Rs 7,439.7 crore in FY23.
- Innovative Retail Concepts, reported a 17% reduction in its net loss to Rs 1,267.2 crore for FY24 compared to Rs 1,535.2 crore in FY23.
- The expenses increased 2% YoY to Rs 9,185.7 crore in FY24, compared to Rs 8,997.6 crore in FY23.
The B2C division of Tata-owned BigBasket, Innovative Retail Concepts, reported a 17% reduction in its net loss to Rs 1,267.2 crore for FY24 compared to Rs 1,535.2 crore in the preceding fiscal year.
The online grocery retailer saw an increase of approximately 6% in its operating revenue to Rs 7,884.5 crore in the year under review, rising from Rs 7,439.7 crore in FY23, with the bulk of this growth attributed to the sale of traded products.
In terms of revenue from traded products, BigBasket recorded Rs 7,609.6 crore, an increase from Rs 7,175.2 crore in FY23.
The company’s advertisement revenue saw a negligible increase of 0.5% YoY to Rs 230.7 crore in FY24. Licence fees revenue remained unchanged, whereas rental income more than quadrupled to Rs 11 crore. This increase in rental income is primarily derived from operating leases on vending machines. The company’s revenue from service offerings rose by 4.6% YoY to Rs 256.8 crore in FY24.
In the financial year filing, revenue from BB Star membership fees was categorized under revenue from services, rather than being reported as a separate category.
Additionally, BigBasket generated Rs 9.1 crore from two new revenue streams: commission income and technology services income. The technology services income was sourced from Tata Group’s Infiniti Retail, while the commission income was from Tata 1mg Healthcare Solutions Private Limited.
In 2021, Tata Digital Limited, a wholly-owned subsidiary of Tata Sons Private Limited, acquired a majority stake in the holding company of BigBasket, Supermarket Grocery Supplies Private Limited. In December 2022, Tata made a further investment in BigBasket.
The company’s income from scrap sales experienced a decline of 5.5% YoY to Rs 18.1 crore in FY24.
Meanwhile, the aggregate expenses experienced an increase of 2% YoY to Rs 9,185.7 crore in FY24, compared to Rs 8,997.6 crore in the preceding fiscal year.
Stock-in-trade purchases remained the primary driver of the company’s total expenses, witnessing a 3.4% growth to Rs 6,260.9 crore in the year under review, an increase from Rs 6,053.4 crore observed in FY23.
In an effort to optimize costs, BigBasket successfully reduced its expenditure on employee benefits by 9.6%, reaching Rs 827.5 crore in FY24, a decrease from Rs 915.6 crore in the fiscal year before. Rs 659.3 crore was allocated towards salaries and wages, a reduction from approximately Rs 690 crore observed in FY23.
The company’s expense on training recruitment witnessed a substantial decline of 70% YoY, reaching Rs 2.1 crore. BigBasket’s expenses in advertising and promotional activities saw a decrease of 14.2%, falling to Rs 329.9 crore in FY24 from Rs 384.7 crore in the fiscal year before. During the fiscal year under review, the company spent Rs 738.9 crore towards transportation expenses, a slight increase from Rs 681.6 crore in FY23.
BigBasket is in the process of integrating BBdaily, its subscription service, into its primary application, aiming to fortify its presence in the quick commerce sector.
