Flipkart-owned Myntra turns profitable with Rs 30.9 crore PAT in FY24, revenue up 15%

Flipkart-owned fashion ecommerce giant Myntra has achieved a remarkable financial turnaround, reporting a net profit of Rs 30.9 crore in fiscal year 2024 (FY24).

This marks a dramatic shift from a loss of Rs 782 crore in FY23. The company attributed the improvement to a combination of revenue growth and cost optimization strategies.

Revenue growth and profitability

Myntra’s revenue from operations rose by 14.7%, reaching Rs 5,121.8 crore in FY24 compared to Rs 4,465 crore the previous year, as per its consolidated financial statement filed with the Registrar of Companies (RoC).

Logistics services accounted for the largest share of revenue, growing by 22.5% to Rs 2,439 crore. Advertising revenue also surged by 33% to Rs 712.3 crore, while marketplace services remained stable at Rs 1,774.6 crore.

Additionally, the company reported Rs 195.9 crore from other income streams and Rs 51 crore in non-operating revenue, primarily from royalties.

The growth in high-margin revenue streams, particularly advertising, played a significant role in driving the company's profitability. 

Cost optimization strategies

While increasing the revenue, Myntra reduced its total expenses by 3.16%, bringing them down to Rs 5,123 crore from Rs 5,290 crore in FY23. Material costs, the company’s largest expense, dropped by 7.82% to Rs 1,996.4 crore, while advertising expenses declined by 4.63% to Rs 1,677.4 crore.

However, employee benefit expenses rose by 7.74% to Rs 800 crore. Additional overheads, including finance and IT costs, totaled Rs 650 crore.

Myntra's entry into quick commerce

Recently, Myntra announced its entry into the growing quick commerce sector with the launch of M-Now, a 30-minute delivery service for fashion and beauty products.

Initially launched in Bengaluru, the service aims to capture the fast-growing quick commerce segment and is set to expand to other cities, including Delhi, Mumbai, and Pune in the coming months.

“Together with the brands, M-Now will play a transformative role in advancing our collective mission to expand fashion possibilities and reshape India’s lifestyle shopping experience,” said Nandita Sinha, CEO at Myntra.