Synopsis
Recykal, a waste management marketplace in Mumbai, reported a 4.4% revenue decline and a 31% increase in losses for FY24, highlighting challenges in sustaining growth from previous fiscal year.Key Takeaways
- Recykal's losses increased by 31%.
- Gross revenue decreased by 4.4% to Rs 712 crore.
- 85% of revenue comes from scrap and waste sales.
- Employee benefits surged by 43.3%.
- Current assets totaled Rs 317 crore.
Mumbai, Feb 25 (NationPress) Recykal, a B2B waste management marketplace led by its Founder and CEO Abhay Deshpande, has disclosed a drop in revenue alongside a notable increase in losses for the financial year 2024 (FY24).
The company’s losses surged by 31 percent to Rs 34 crore, up from Rs 26 crore in FY23.
As per its financial records, Recykal’s gross revenue fell by 4.4 percent to Rs 712 crore in FY24, compared to Rs 745 crore in the preceding fiscal year (FY23).
The firm, which had experienced a fourfold year-on-year (YoY) growth in FY23, faced challenges in sustaining the same growth trajectory in FY24.
The majority of its revenue stems from scrap and waste sales, accounting for 85 percent of its overall earnings.
However, this segment experienced a 7.4 percent decline, reducing to Rs 608 crore in FY24 from Rs 657 crore in FY23.
The remaining earnings were derived from sustainability services, including EPR certificates. Despite the revenue contraction, the company’s total expenses continued to rise.
Employee benefits rose sharply by 43.3 percent to Rs 43 crore, which included Rs 3.2 crore in costs associated with employee stock ownership plans (ESOP).
Provisions for doubtful debts, legal expenses, rent, communication, logistics, and other overheads elevated total expenditure to Rs 752 crore in FY24.
Scrap and waste procurement remained the largest cost factor, representing 89.5 percent of total expenses, albeit slightly reduced to Rs 673 crore.
Recykal’s Return on Capital Employed (ROCE) was -15.66 percent, while its EBITDA margin stood at -4.04 percent.
The company also reported total current assets of Rs 317 crore by the end of FY24, including Rs 70 crore in cash and bank balances.
So far, the firm has secured over $38 million, including a $13 million round led by 360 ONE Asset Management.
Founded in 2016, Recykal offers digital solutions for waste management, aiding businesses in achieving Extended Producer Responsibility (EPR) targets, sourcing recyclables, and monitoring industrial waste.
