Boult Audio revenue jumps 40% to over Rs 700 Cr in FY24

Bootstrapped consumer electronics brand Boult Audio recorded a 40% surge in operating revenue for the fiscal year ending March 2024. Notably, it was the only player among peers such as Noise and boAt to achieve such growth during the period. However, the notable top-line came at a cost, as the Delhi-based company’s profit declined by 37%.

Boult’s revenue from operations increased by 40% to Rs 697 crore in FY24 from Rs 498 crore in FY23, according to its financial statement sourced from the Registrar of Companies (RoC).

Founded in 2017, Boult Audio designs, develops and manufactures wireless earbuds, headphones, smartwatches, and speakers. Revenue from sale of these products remained the sole source of revenue. 

The company’s revenue majorly came from domestic sales, which grew 45% to Rs 620 crore in FY24. Revenue from overseas sales remained stable at Rs 77 crore, contributing 11% to the top line. Boult made additional Rs 5 crore from non-operating revenue which pushed its total revenue to Rs 702 crore in FY24 from Rs 501 crore in FY23.

On the expense side, the largest cost component—cost of material consumed—rose 25% to Rs 402 crore, accounting for nearly 58% of total expenses. Advertising expenditure spiked 74% to Rs 162 crore, while post-supply discounts grew 84% to Rs 70 crore. These two expenditures collectively accounted for over 33% of its total expenses. Employee benefit expenses rose by over 50% year-on-year to Rs 26 crore in FY24

Other overheads, including admin and general expenses, added Rs 39 crore to the total cost. Overall, total costs increased by 41% to Rs 699 crore in FY24. For more detailed expense breakup please refer to TheKredible.

As overall costs outpaced revenue growth, Boult’s net profit declined by 37% to Rs 2.5 crore in FY24 from Rs 4 crore in FY23. Its ROCE and EBITDA margin stood at 52.94% and 2.64%, respectively. On a unit level, Boult Audio spent Rs 1.00 to earn each rupee of revenue.

As of March 2024, the company recorded current assets worth Rs 211 crore including Rs 9 crore in cash and bank balance. Boult’s inventories stood at Rs 964.5 crore during the same period—up 63% from FY23. This significant buildup suggests Boult is preparing for high-volume sales, possibly ahead of festive seasons or upcoming launches. 

Boult made its first recorded CSR contribution of Rs 12.23 lakh in FY24. 

According to TheKredible, Boult Audio has remained unfunded till date. Its co-founders, Varun Gupta and Tarun Gupta together own 49.5% of the company. Its director Vinod Gupta holds a 23.76% stake, while Pankhuri Gupta, who leads design at Boult, holds 25.74% stake in the company.

The firm competes directly with homegrown electronics rivals boAt and Noise. In FY24, market leader boAt reported revenue of Rs 3,118 crore but closed the year with a loss of Rs 80 crore. Noise followed with Rs 1,431 crore in revenue and a loss of Rs 19 crore. Notably, Noise moved away from its bootstrapped roots, securing two rounds of funding from global audio giant Bose during the fiscal year.

Good intentions aside, the margin pressure is a way of life in the segment,thanks to little differentiation and competitive intensity in the middle and mass segment that most players battle it out in. That is reflected in both the higher ad spends and the discounts. The segment, where brands like Bose, Apple , Sennheiser or even Sony enjoy a clear premium vis a vis pricing and perception is powered by impulse buys in the case of the other players. That translates to unplanned and value or cheap, however much they might hate the term. Seen as ‘disposable’ or low risk purchases, the brands are trapped in a low margin race. It will take a special focus on innovations and building differentiation to stand out and move away from the pack, which no one seems to be doing currently as they chase topline mostly.  

Consider how customer service is reduced to just an exchange, if at all. We are tempted to call the topline chase a vanity number, but considering how scrappy and smart these players have been to come this far, we hope to see better sooner than later.