SUMMARY
- WROGN’s losses have increased by 28.2%, reaching a total of nearly Rs 56.76 crore in FY24 from Rs 44.26 crore in FY23.
- The Virat Kohli-backed brand’s operational income decreased by 29.2% to Rs 243.75 crore from Rs 344.3 crore in FY23.
- The company’s spending decreased by 24.7% to Rs 305.56 crore in FY24 from Rs 405.6 crore in the previous fiscal year.
Virat Kohli-backed men’s apparel brand WROGN’s losses have increased by 28.2%, reaching a total of nearly Rs 56.76 crore in FY24 from Rs 44.26 crore in FY23.
In FY24, WROGN’s operational income decreased by 29.2% to Rs 243.75 crore from Rs 344.3 crore in FY23, according to its consolidated financial reports. Additionally, the company earned Rs 21 crore from interest and profits on its investments, which brought its total income to Rs 264.8 crore for the fiscal year 2024.
Established in 2014 by siblings Anjana and Vikram Reddy, WROGN specializes in the sale of outdoor products, including apparel, footwear, and accessories, among others. Utilizing Virat Kohli’s influence, the brand has quickly expanded its market presence through exclusive brand outlets and strategic partnerships with various marketplaces.
As for the expenses, the cost of materials accounted for 53.6% of the total expenses, decreasing by 29% to Rs 163.91 crore in the year under review. The expenses related to employee benefits also saw a reduction by 7.5% to Rs 32.26 crore during the same period. Notably, these employee benefits also include expenses related to Employee Stock Ownership Plans (ESOPs) worth Rs 1.96 crore.
The commission paid to the selling agents saw a 28% decrease in FY24 to Rs 30.83 crore, while other costs such as advertising promotions and legal and professional fees also saw significant reductions. Overall, the company’s spending decreased by 24.7% to Rs 305.56 crore from Rs 405.6 crore in the previous fiscal year.
However, the company’s cash outflows decreased by over 63% to Rs 5.23 crore during the fiscal year. Its outstanding debt rose to Rs 636.58 crore by the end of the fiscal year. The company’s EBITDA margin and ROCE were negative at -6.04% and -72.07%, respectively. On a per-unit basis, WROGN spent Rs 1.25 to generate a rupee of operating revenue in FY24.
Aditya Birla’s TMRW recently acquired a 16% stake in WROGN for $105 million, investing Rs 125 crore. It’s important to note that Aditya Birla also purchased a similar brand, Bewakoof, in December 2022.
Since its inception in 2014, WROGN has managed to secure approximately $90 million in investments from various sources, including Accel, Flipkart, Virat Kohli, and Sachin Tendulkar. In November 2020, Flipkart invested an undisclosed amount in WROGN’s Series F funding round. The e-commerce giant is also a shareholder in Hrithik Roshan’s HRX, which competes with WROGN.
