With Rs 4,964 Cr revenue, Moglix reports flat growth in FY24

After experiencing 82.6% growth in FY23, the B2B e-commerce platform Moglix registered a modest 5.5% increase in revenue during the fiscal year ending March 2024. Despite this slower growth, the company managed to reduce its losses by 16% during the same period.

Moglix's revenue from operations increased to Rs 4,964 crore ($591 million) in FY24, up from Rs 4,704 crore ($560 million) in FY23, according to its consolidated financial statements accessed from its group company in Singapore.

The sale of traded goods accounted for 98.98% of Moglix's operating revenue, which grew by 5.4% to Rs 4,914 crore in FY24. The remaining income comes from commissions on online sales, information technology services, factoring, and other allied services.

Interest income and other non-operating earnings boosted Moglix's total revenue to Rs 5,309 crore ($632 million) in FY24. Notably, the Indian market contributed 97.1% of the company's revenue, with the USA accounting for 2.7% and Singapore contributing 0.16%.

To check complete Revenue Breakdown visit thekredible.comView full data

Moglix operates on a cash-and-carry model, with procurement costs accounting for 84% of its total expenses. In FY24, due to the increase in scale, these costs rose by 4.4%, reaching Rs 4,620 crore, up from Rs 4,427 crore in FY23.

Moglix spent Rs 218 crore on employee benefits and Rs 92 crore on shipping in FY24. Its spending on advertising, legal, information technology, allowance for doubtful debts, and other overheads brought the total cost to Rs 5,493 crore ($654 million) in FY24, compared to Rs 5,208 crore ($620 million) in FY23.

To check complete Expense Breakdown visit thekredible.comView full data

Despite the flat growth in scale, controlled costs and a surge in other income helped Moglix reduce its losses by 16% to Rs 189 crore ($22.5 million) in FY24, down from Rs 225 crore ($26.8 million) in FY23. Its ROCE and EBITDA margin stood at -4.82% and -1.5%, respectively. On a unit level, the company spent Rs 1.11 to earn a rupee in FY24.

Moglix has secured a total of $440 million across various funding rounds. According to the data intelligence platform TheKredible, Tiger Global is the largest external stakeholder with a 14.75% share, followed by Accel and Alpha Wave, holding 14.26% and 13.35%, respectively. Co-founder and CEO Rahul Garg holds a 12.67% stake in Moglix.

The slowdown in growth would be a worrying sign for Moglix, coming probably much more earlier than expected in its journey. However, it has to be said that sharp decelerations are not as uncommon as many believe when a firm is growing as fast as Moglix did in the previous financial years. Fast growth can bring its own problems (not all welcome), be it on the people front, liquidity or other issues. Either way,  be it due to a broader underlying slowdown, or growth pangs linked to managing the high growth in the previous year, investors will be watching keenly to see what emerges as a reason.