New Delhi, Feb 17 (IANS) Direct-to-consumer (D2C) brand The Ayurveda Co suffered a sharp rise in losses in FY24, as its net loss surged over three-fold to Rs 68 crore, up from Rs 21 crore in FY23.
According to the company’s financials, the widened loss is primarily due to material costs, which more than doubled to Rs 28.6 crore compared to Rs 12 crore in FY23.
Advertising expenses soared by 73 per cent to Rs 26 crore, while employee benefits increased by 80 per cent to Rs 15.5 crore.
Manpower and recruitment costs also surged, adding Rs 11.3 crore to the company’s total expenses.
With overall expenditure rising 97 per cent to Rs 109.5 crore in FY24, The Ayurveda Co reported a negative EBITDA margin of (-) 100.65 per cent and a return on capital employed (ROCE) of (-) 700 per cent.
On a unit level, the company spent Rs 1.84 to earn a single rupee, which underscores its financial struggles.
Despite securing Rs 100 crore in a Series A round led by Sixth Sense Ventures in 2023, the company’s financial health appears weak.
It ended FY24 with current assets worth Rs 45 crore, but its cash and bank balance stood at just Rs 52 lakh, which raised concerns about its liquidity.
Despite the losses, the company’s revenue grew by 66 per cent to reach Rs 59.6 crore in FY24 as compared to Rs 36 crore in FY23.
The firm’s total income, including Rs 2.4 crore from interest earnings, stood at Rs 62 crore in FY24.
The Ayurveda Co, backed by Sixth Sense Ventures, specialises in ayurvedic beauty and personal care products, including skincare, haircare, makeup, and wellness items.
In a competitive market dominated by brands like Ayurveda Experience, Wow Skin and Sugar, The Ayurveda Co faces mounting pressure to improve its financial performance.
According to reports, the next fiscal year will be critical in determining the company’s long-term viability.