Walmart-owned Myntra, an e-commerce retailer, said its losses widened 39% to `597 crore in financial year 2022, up from `429 crore in FY21, dragged by an increase in logistics costs and other promotion and ad-related spends.
The losses came during a year where most customers stayed indoors and shopped from the comfort of their owns, thanks to the Covid-related restrictions.
The Bengaluru-based company also reported a fall in its earnings before interest, taxes, depreciation and amortisation (Ebitda) margins to -15.3% in FY22 from -12.6% in FY21.
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The Nandita Sinha-led company, however, saw its operating revenue increase 46% from `2,407 crore in FY21 to `3,501 crore in FY22, helped by an increase in market place services and advertisement services, as per regulatory with the Registrar of Companies (RoC).
Myntra’s total expenses also moved in tandem with its growth in operating revenues, increasing 46% to Rs 4,207 crore in FY22 from Rs 2,891 crore. A surge of about 84% in Myntra’s non-operating income helped the company control its losses. Myntra earned about `109 crore from gift vouchers and others.
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In FY23, the festive sales which run between September and October each year, was projected to increase 30%, when compared with the previous year, to reach a gross merchandise value (GMV) of $11.8 billion, Redseer had said. This was likely to boost top lines in FY23, and Myntra along with Reliance Retail’s Ajio, a direct competitor, stands to benefit.