Boult Audio Reports 37% Net Profit Decline in FY24, Revenue Up 41%
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Synopsis
Boult Audio has reported a 37% decline in net profit at Rs 2.5 crore for FY24, down from Rs 4 crore in FY23, despite a 41% increase in revenue to Rs 702 crore, driven by rising operational costs.
Key Takeaways
- Boult Audio's net profit fell by 37%.
- Total revenue increased by 41% to Rs 702 crore.
- Material costs rose by 25% to Rs 402 crore.
- Advertising expenses surged by 74% to Rs 162 crore.
- Domestic sales grew by 45% to Rs 620 crore.
New Delhi, April 25 (NationPress) Boult Audio, the self-funded consumer electronics brand, has experienced a 37% decrease in its net profit, reporting Rs 2.5 crore for the fiscal year 2023-24 (FY24), a drop from Rs 4 crore in FY23.
The Delhi-based firm, known for designing and manufacturing wireless earbuds, headphones, smartwatches, and speakers, witnessed an increase in operational revenue to Rs 697 crore in FY24, up from Rs 498 crore in the previous fiscal year, according to its financial reports.
Boult also earned Rs 5 crore from non-operating revenue, leading to a total revenue of Rs 702 crore.
However, escalating expenses, particularly in the areas of materials, marketing, and post-supply discounts, exceeded the revenue growth.
Boult’s expenses for materials consumed surged by 25% to Rs 402 crore, accounting for nearly 58% of its total costs.
Marketing expenses soared by 74% to Rs 162 crore, and post-supply discounts rose 84% to Rs 70 crore, as indicated by an Entrackr report.
This increase in operational costs significantly affected the company’s net profit.
The firm’s domestic sales grew by 45%, reaching Rs 620 crore, while international sales remained steady at Rs 77 crore, contributing 11% to the total revenue.
In contrast to its rivals, Boult has preserved its bootstrapped status and is managed by co-founders Varun Gupta and Tarun Gupta, who collectively hold a 49.5% ownership stake in the company.
Industry experts suggest that while the company strives to enhance its brand and prepare for increased sales volumes, the intensifying competition within the consumer electronics sector and mounting cost pressures have made it challenging for Boult to sustain profitability.
