When it comes to robotics and large scale automation solutions, Greyorange is the name that comes to mind as the poster boy of the sector in the past seven to eight years. While the sector didn’t see any other company close to GreyOrange’s scale and impact, Noida-based Addverb Technologies appears to be growing at a quick clip in the past few years.
Addverb’s revenue from operations grew 64.2% to Rs 317 crore in FY22 from Rs 193 crore in the previous fiscal year (FY21), according to its annual financial statement with the Registrar of Companies (RoC).
Reliance Retail had acquired a majority stake (54%) in Addverb for $132 million in January this year. The investment by the Mukesh Ambani-led group was seen as a strategic one, but the company’s strong growth momentum in FY22 could be one of the driving factors for the deal. Previously, Addverb raised $11 million in Series A and pre-Series A funding rounds from Jalaj Dani (co-promoter of Asian Paints).
Addverb designs and builds robotics and warehouse automation solutions for clients and the sale of such products constitutes 90% of its operating revenue. This income surged 63.5% to Rs 282 crore in FY22 from Rs 172.5 crore in FY21. The company also generates revenue from installation and commission on sales which grew 91% to Rs 32.48 crore in FY22.
In line with growth, total expenses at Addverb also shot up 64.5% to Rs 317.50 crore in FY22 from Rs 193 crore in FY21. The cost of materials consumed was the largest cost center and formed 60% of the overall cost which grew 42.4% to Rs 190 crore in FY22.
Employee benefit expenses were another major expense, spiking 2X to Rs 84.55 crore in FY22 from Rs 40.87 crore in FY21. Cost for the subscription membership fee and travelling conveyance enlarged 4.3X and 2X to Rs 4.52 crore and Rs 8.25 crore respectively in the last fiscal year.
Addverb also spent another Rs 6.66 crore on legal and professional fees while the cost of advertisement and promotion spiked 7.7X to Rs 4.93 crore in FY22.
Despite 64.5% growth in expenses, Addverb has managed to stay in the black in FY22. Its profits grew 76% to Rs 2.43 crore during the last fiscal year while the company’s cash outflow from operations grew 13X to Rs 56.41 crore in FY22.
With industrial automation and robotics gaining traction, and a manufacturing renaissance of sorts underway in India, the firm has a strong base to work on now.