03 January 2024, Mumbai
Flipkart-owned fashion e-commerce marketplace Myntra has collaborated with the European fashion group Tendem to offer international styles to Indian customers.
The e-commerce company plans to open 20 stores for the brand in India over the next three years.
Operational leverage
Despite net losses increasing by 31 percent in the financial year ending March 31, 2023, Myntra continues to invest in advertising and brand visibility.
The company’s net loss surged to Rs 782.4 crore this fiscal from Rs 597.6 Cr in the previous fiscal year.
Multiple data-points
Myntra’s operating revenue grew by 25 percent to Rs 4,375.3 crore during FY’23 from Rs 3,501.2 crore in FY’22. However, the total revenue, including other income surged to Rs 4,509.2 crore, while total expenditure also rose by 26 per cent to Rs 5,290.1 crore.
Myntra invested around 40 percent of its revenue totaling Rs 1,758.8 crore in advertising this fiscal year.
It’s investments in material procurement and employee benefits increased by 22 percent and 21 percent, respectively. Despite this, the company’s EBITDA margin declined to -16.4 percent in FY’23.
