Oct 8, 2024

Boat reports 5% revenue decline in FY24, net loss halves SECTIONS ETtech Rate Story Synopsis The wearable and audio products company’s audio business was flat in the second half of FY24, with a shift towards online sales. The headphone segment experienced a decline despite a low base, and the speaker business also posted flat results. ETtech Homegrown wearable and audio products brand Boat recorded a 5% decline in revenue for the fiscal year ending March 2024. However, the company significantly reduced its net loss by around 48% to Rs 70.8 crore during the same period. State Election Results According to Boat’s FY24 financials accessed from the Registrar of Companies (RoC), revenue reduced from Rs 3,284.7 crore in FY23 to Rs 3,121.6 crore in FY24. The company noted that the audio business was flat in the second half of FY24, with a shift towards online sales. Also, the headphone segment experienced a decline despite a low base, and the speaker business also posted flat results. However, Boat recorded positive earnings before interest, taxes, depreciation, and amortisation (Ebitda) in FY24. News website Entrackr first reported Boat’s FY24 results. Discover the stories of your interest Founded by Aman Gupta and Sameer Mehta in 2015, it has raised $171 million to date, according to data from Tracxn. As per International Data Corporation (IDC), Boat is the largest wearables company in India with a 26.7% market share in the second quarter of 2024. The company’s focus on building its wearables business through sales, marketing, and pricing strategies has impacted its profitability. In the wearables segment, there was a steep decline in average selling price, coupled with fierce competition, which led to margin pressure for the company. Despite this, Boat anticipates an improvement in Ebitda and profit before tax (PBT) margins in FY25, driven by initiatives like optimising warranty costs and reducing advertising and promotional expenses. According to a report released by market research firm Counterpoint Research on Monday, smartwatch shipments in India fell by 32% year-on-year (YoY) in Q2 2024, as initial excitement for these devices has started tapering off. This decline in demand took the industry by surprise, resulting in substantial excess inventory. At the ET Soonicorns Summit held in Bengaluru last month, Gupta revealed the company’s plans to go for an initial public offering (IPO) next year and international expansion in the UAE. State Election Results