Consumer Electronics Startup Boat Announces FY24 Results, Cuts Losses By 47% With Steady Revenue

The consumer electronics company boAt expects to record flat growth in the fiscal year ending March 2024. However, the Gurugram-based company has managed to reduce its losses by 47% within the same period.

According to an internal document obtained by media from the Registrar of Companies (RoC), boAt’s audited revenue fell 5% to Rs 3,122 crore in FY24, from Rs 3,285 crore in FY23.

BoAt generated positive EBITDA in FY24, indicating a return to profitability and higher unit economics compared to FY23.

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The majority of BoAt’s revenue comes from the sale of audio products, such as wired and wireless earbuds, headphones, speakers, wired headphones, and sound bars. Wearables and other accessories sales help to boost the company’s overall revenue.

Despite a minor dip in sales, the Warburg Pincus-backed firm was able to minimize its expenditures, resulting in a 47% reduction in losses, which fell to Rs 53.5 crore in FY24 from Rs 101 crore in FY23.

According to the document, boAt’s audio business performed flat in the second half of fiscal year 24. In the wearables market, a sharp drop in average selling price, along with severe competition, resulted in margin pressure.

“The audio business’ revenue continues to grow, increasing by 5% in FY24. The audio business’s EBITDA climbed to 9% in fiscal year 24.” The document was further expanded. boAt also aims to boost its EBITDA margins for the current fiscal year through a variety of initiatives, including warranty cost optimization and reduced advertising and promotion costs, among others.

BoAt, founded in 2015 by Aman Gupta and Sameer Mehta, has raised a total of $177 million from investors such as Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Navi Technologies, and Fireside Ventures.

According to IDC analysis, the Indian wearables market fell for the first time in history, by 10% in the June 2024 quarter to 29.5 million devices. This reduction is ascribed to an excess of unsold older models and a lack of innovation in the market.

According to the research, Oppo and OnePlus saw the most dramatic year-on-year shipment reduction, falling by 35.8%. Following them, Fire-Boltt reported a 24.3% decrease in wearable shipments, Noise a 13.9% decrease, and boAt a 9.8% YoY decline.