HealthKart reports Rs 1,021 Cr revenue and Rs 37 Cr PAT in FY24

Health and nutrition brand HealthKart recently raised $153 million in one of the largest funding rounds of 2024. The secondary round, led by ChrysCapital and Motilal Oswal Alternates, followed a strong turnaround in the fiscal year ending March 2024. The Gurugram-based company surpassed Rs 1,000 crore in revenue in FY24 and reported a profit of over Rs 36 crore, a remarkable recovery from Rs 164 crore loss in FY23.

HealthKart’s revenue from operations grew by 22.6% to Rs 1,021 crore in FY24, its consolidated financial statement sourced from the Registrar of Companies (RoC) shows. On a consolidated basis, its total revenue grew by 22.7% to Rs 1,068.9 crore from Rs 851.8 crore in the previous fiscal.

HealthKart owns and manufactures eight nutritional brands including popular supplement brands like MuscleBlaze, The Protein Zone, TrueBasics, HKVitals, bGreen, Nouriza, and Gritzo.

Sales of products formed 92.6% of total revenue which rose by 22.6% to Rs 990.3 crore in FY24. Collections from services also increased by 23.9% to Rs 30.6 crore. Notably, non-operating revenue jumped 2.4X to Rs 48 crore in the last fiscal year from Rs 19.4 crore in FY23.

On the expense side, the cost of materials remained the largest expense which increased by 14.9% to Rs 494.5 crore in FY24. Employee benefit expenses grew by 11.2% to Rs 120.6 crore which also includes Rs 9.4 crore of ESOP cost. On the other hand, advertising expenses remained steady at Rs 188.8 crore, while other expenses added another Rs 228.3 crore in FY24. Overall, HealthKart’s total expenses rose marginally by 1.5% to Rs 1,032.2 crore during the last fiscal year.

HealthKart achieved a significant milestone by posting a profit after tax (PAT) of Rs 36.6 crore in FY24, compared to a net loss of Rs 75.5 crore in FY23. 

Note: The expenses for FY23 included a net loss of Rs 89 crore on the remeasurement of financial liabilities designated at fair value through profit or loss as FVTPL.

HealthKart’s ROCE and EBITDA margin stood at 5.6% and 6.51%, respectively. On a unit basis, the company spent Rs 1.01 to earn a rupee in FY24. The Gurugram-based company reported Rs 210 crore in cash and bank balances and had a current asset of Rs 916 crore as of FY24.

According to the startup data intelligence platform TheKredible, the Gurugram-based firm has raised around $360 million to date. Its leading investors include Peak XV Partners, Temasek and Sofina.

The good times are clearly here for HealthKart, as it benefits from steps it has taken over the past two years to streamline operations, and the significant turn in the market towards protein supplements where it has clearly positioned itself well.  Risks if any are regulatory in terms of possible restrictions on claims and how many of these supplements are sold, or a turn in the tide towards these at some stage. By avoiding the multi level marketing route significantly, HealthKart has done itself a favour probably, as it reaps higher margins based on the reputation it has managed to build up or loyal customers.  It is something it will need to focus on more strongly now to hold back competition as well as build a long term brand that is trusted and justifies a premium.