boAt’s Sales More Than Double To INR 2,873 Cr In FY22, Profit Dips 20%

New Delhi-based D2C electronics brand boAt’s sales jumped over 2X to INR 2,872.9 Cr in the financial year 2021-22 (FY22) from INR 1,313.8 Cr in FY21. Total revenue also rose 117.5% to INR 2,886.4 Cr from INR 1,320.3 Cr in the previous fiscal year.

Audio products such as earphones and headphones continued to bring in the highest revenue for the startup in FY22 as well. boAt’s revenue from sale of audio products rose 85.2% to INR 2,276 Cr from INR 1,228.5 Cr in FY21. Sales of audio products constituted almost 80% of its revenue from operations.

Meanwhile, wearables such as smart watches generated revenue of INR 515.5 Cr in FY22, a rise of 841% from INR 54.8 Cr in the previous year.

On the expenses front, boAT reported a 132% jump in total expenditure to INR 2,786.9 Cr from INR 1,202.1 Cr in FY21. Purchase of stock-in-trade, which rose 107% to INR 2,591.5 Cr from INR 1,254.7 Cr in FY21, was the biggest contributor to total expenditure in FY22. 

The rise in the purchase of stock-in trade can be attributed to the increase in the number of products in the startup’s portfolio.

boAt’s employee benefit expenses also surged 267.1% to INR 56.1 Cr from INR 14.9 Cr in FY21. Employee benefit expenses comprises employees’ salaries, PF contributions, gratuity, and other benefits. The sharp rise in this expense is a clear indication that the company increased its employee headcount. 

Unlike most other D2C brands who spend a huge amount on advertising and promotional activities, boAt spent a mere INR 99 Cr for this purpose in FY22 – 3.5% of its total expenditure. The startup had spent INR 47.8 Cr on advertising in FY21. 

However, boAt’s profit dipped 20.6% to INR 68.7 Cr in FY22 from INR 86.5 Cr in FY21.

boAt, founded by Aman Gupta and Sameer Mehta in 2015, filed its DRHP (draft red herring prospectus) with markets regulator SEBI last year to raise INR 2,000 Cr through initial public offering (IPO). However, the startup withdrew its DRHP citing market volatility, even though it had received the regulator’s nod. 

Following this, the D2C brand raised INR 500 Cr from its existing backer Warburg Pincus.  boAt competes against the likes of Noise and Mivi in the audio and wearable space in India. It has raised $150 Mn till date.

As per an IDC report, boAt continues to dominate the wearable market in the country. The startup had 32.1% share in the market Q3 2022.

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