E-commerce firm 'Snapdeal' delivers steady Financial results in FY24

By Team Startupcity  |  Monday, 30 December 2024, 08:36 IST

E-commerce firm 'Snapdeal' delivers steady Financial results in FY24
Snapdeal, an online retailer, produced consistent financial outcomes in FY24. The company's adjusted EBITDA loss decreased by 88% from 144 crore in FY23 to 16 crore in FY24 as a result of cost-cutting measures. In the previous fiscal year, its operating cash flows also improved.
According to Snapdeal's consolidated financial accounts submitted to the RoC, its operating revenue climbed by 2.1% from 371.96 crore in FY23 to 379.76 crore in FY24.
E-commerce facilitation, marketing services, and various supplementary sources are Snapdeal's main sources of income.
Despite a 9.6% decline from FY23, marketing services remained the biggest contribution, bringing in 252.55 crore. The platform's growing popularity among value-focused sellers is reflected in its enabling income, which rose 14.8% to 103.36 crore. In FY24, revenue from other sources also increased by more than eight times to 23.85 crore.
Significant cost savings were achieved in a number of categories as a result of Snapdeal's strategic focus on focused cost-cutting activities. 
The company's expenditure on employee benefits decreased from 307.53 crore in FY23 to 158.4 crore in FY24, a 48.5% decrease. During the same time period, advertising and promotional expenses were also cut by 23.5% to 70.37 crore.
The Gurugram-based company's overall spending decreased from 687.93 crore in FY23 to 540.76 crore in FY24, a 21.4% decrease.
The company's improved performance was demonstrated in FY24, when its loss was reduced by 43.2% to 160.38 crore.
Additionally, the majority of this loss appears to be due to non-cash factors, such as the 110 crore devaluation of a put option owned by Unicommerce investors, which results in an adjusted EBITDA loss of 16 crore.According to a regulatory filing on November 29, listed real estate developer Macrotech Developers, also known as Lodha, has signed a share purchase agreement for the acquisition of a 100% stake in Janus Logistics and Industrial Parks Private Limited for ?47.94 crore, making JLIPPL a fully-owned subsidiary of Lodha.
As per the regulatory filing, the company says that “the acquisition is in pursuance of our planned strategy for calibrated growth in our annuity income through Digital Infrastructure viz. Industrial and Logistics under the LILP (Lodha Industrial and Logistics Park) brand.”
Lodha declared three weeks ago that it has reached agreements to pay ?307 crore to acquire Bain Capital's stake in its three distinct joint ventures under the Digital Infrastructure Platform.
The business also said in January 2024 that it had finalized the agreements necessary to purchase a 100% share in Goel Ganga Ventures India Private Limited (GGVIPL). GGVIPL is expected to become a fully owned subsidiary of the business after this acquisition.
According to a statement made earlier this year by Abhishek Lodha, CMD of Lodha Group, Palava City, which is located close to Mumbai and spans about 4,500 acres, could grow and bring in over ?8,000 crore annually in the coming years as a result of the construction of commercial and residential buildings, as well as warehouses, industrial spaces, and a hub for life sciences.
During the Q2FY25 earnings call, Lodha group said, "The company’s pilot phase in "Bengaluru has been concluded successfully. As you are aware, when we entered Bengaluru in mid-2021, we had mentioned that we would be in pilot phase for 2-3 years during which, we will focus on building a strong local operating team, understanding local operating nuances and making sure that we can showcase our delivery to consumers". 

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