New Delhi, April 25 (IANS) Boult Audio, the bootstrapped consumer electronics brand, has reported a 37 per cent drop in its net profit to Rs 2.5 crore for the fiscal year 2023-24 (FY24), compared to Rs 4 crore in FY23.
The Delhi-based company, which designs and manufactures wireless earbuds, headphones, smartwatches, and speakers, saw its revenue from operations increase to Rs 697 crore in FY24 from Rs 498 crore in the previous fiscal, as per its financials.
Boult also made Rs 5 crore from non-operating revenue, bringing its total revenue to Rs 702 crore.
However, the rising expenses, particularly in materials, advertising, and post-supply discounts, outpaced the revenue growth.
Boult’s cost of material consumed surged by 25 per cent to Rs 402 crore, making up nearly 58 per cent of its total expenses.
Advertising expenses jumped by 74 per cent to Rs 162 crore, and post-supply discounts saw an 84 per cent increase to Rs 70 crore, as per an Entrackr report.
As a result of these rising costs, Boult’s overall expenses climbed by 41 per cent to Rs 699 crore in FY24, according to its financials.
This increase in operational costs significantly impacted the company’s bottom line, leading to a sharp decline in its net profit.
The company’s domestic sales saw a growth of 45 per cent, reaching Rs 620 crore, while international sales remained stable at Rs 77 crore, contributing 11 per cent to the total revenue.
However, unlike its competitors, Boult has maintained its bootstrapped status and is led by co-founders Varun Gupta and Tarun Gupta, who own a combined 49.5 per cent stake in the company.
According to industry experts, while the company is making efforts to build its brand and prepare for high-volume sales, the growing competition in the consumer electronics market and the rising cost pressures have made it difficult for Boult to maintain profitability.
–IANS
pk/na
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
