SUMMARY
- PharmEasy’s revenue from operations fell by 14.8% to Rs 5,664 crore in FY24.
- The company’s total expenses dropped by 19.2% to Rs 7,254.8 crore in FY24.
- Its losses dropped 51.4% YoY to Rs 2,533.5 crore in FY24.
PharmEasy‘s revenue from operations fell by 14.8% to Rs 5,664 crore in FY24 from Rs 6,644 crore in FY23, as per the company’s financial report.
PharmEasy provides pharmaceutical and cosmetic items, as well as offering diagnostic services and teleconsultations through its mobile and web apps.
The majority of PharmEasy’s operating revenue, around 88%, came from the sales of pharmaceutical and cosmetic products, with the rest coming from services like diagnostic tests, teleconsultations, delivery, warehousing, and commission on pathology tests.
Additionally, the company earned Rs 94.6 crore from non-operating income through interest and gains on assets, which increased its total revenue to Rs 5,758 crore in FY24.
Its parent company, API Holdings, implemented several cost-cutting measures in FY24. The cost of materials remained the largest expense category, accounting for 67.3% of the total expenses. This cost decreased by 14.8% to Rs 4,880.3 crore in FY24 while the cost of finance increased by 9.4% to Rs 727.9 crore, and the company spent Rs 699.3 crore on employee benefits, which also includes costs for ESOPs worth Rs 221.8 crore.
The payment to delivery associates for contracts contributed Rs 78.7 crore. Other costs include legal fees, professional services, sales promotion, and marketing expenses. The company’s total expenses dropped by 19.2% to Rs 7,254.8 crore in FY24 from Rs 8,974 crore in FY23.
Consequently, the company managed to keep its losses in check, dropping 51.4% YoY to Rs 2,533.5 crore in FY24 from Rs 5,211.7 crore in FY23. Its operating cash outflows also saw improvement of 91.8%, reaching Rs 61.13 crore. However, the company’s outstanding losses rose to Rs 13,352 crore or $1.6 billion in FY24.
In FY24, PharmEasy’s EBITDA loss was Rs 552 crore in with its EBITDA margin and ROCE improving to -9.59% and -15.71%, respectively. On a per-unit basis, PharmEasy spent Rs 1.28 to generate a rupee in the fiscal year 2024. Its current assets grew by 37.1% to Rs 3,476.2 crore, and its cash and bank balances grew by 69.4% to Rs 328 crore in FY24 from Rs 193.6 crore in FY23.
Mumbai-based PharmEasy has secured approximately $1.1 billion in funding from various investors, including Ranjan Pai’s MEMG, Prosus, and Temasek, among others. It bagged $216 million in funding in a down round in April 2024 and was valued at around $710 million (post-money). In September, global asset management firm Janus Henderson reduced its valuation by 91.8% to $458 million.
Notably, PharmEasy had filed draft papers for an IPO in November 2021 but withdrew the application a month later, citing unfavorable market conditions and strategic factors.
