Shiprocket Achieves Positive EBITDA with 24% Revenue Growth
Shiprocket reported strong financial performance with total revenue reaching ₹1,632.00 crore, a 24% year-on-year increase. The company achieved full-year positive cash EBITDA of ₹7.00 crore, compared to a ₹128.00 crore cash burn in the previous period. Core business revenue grew by 20% to ₹1,306.00 crore, while emerging businesses expanded by 41%, now contributing 20% of total revenue. Net loss reduced significantly to ₹74.00 crore from ₹595.00 crore. Despite revenue growth, total expenses remained flat, indicating improved operational efficiency.
*this image is generated using AI for illustrative purposes only.
E-commerce logistics company Shiprocket has reported strong financial performance, marking a significant milestone in its growth journey. The company not only achieved full-year positive cash EBITDA but also demonstrated substantial revenue growth and improved profitability across its business segments.
Financial Highlights
| Metric | Current Period | Previous Period | YoY Change |
|---|---|---|---|
| Revenue | ₹1,632.00 crore | ₹1,316.00 crore | 24% ↑ |
| Core Business Revenue | ₹1,306.00 crore | ₹1,088.00 crore* | 20% ↑ |
| EBITDA | ₹7.00 crore | -₹128.00 crore | 105% ↑ |
| Core Business Cash EBITDA | ₹157.00 crore | ₹78.50 crore* | 100% ↑ |
| Net Loss | ₹74.00 crore | ₹595.00 crore | 88% ↓ |
*Calculated based on available data
Revenue Growth and Business Expansion
Shiprocket's total revenue reached ₹1,632.00 crore, representing a 24% year-on-year increase from ₹1,316.00 crore in the previous period. The company's core business, which includes its primary logistics services, grew by 20% to ₹1,306.00 crore.
Notably, Shiprocket's emerging businesses have shown impressive growth:
- 41% expansion in revenue
- Now contribute 20% of total revenue, up from 11% two years ago
This diversification indicates Shiprocket's successful efforts in expanding its service offerings and market reach.
Profitability Improvements
Shiprocket has made significant strides in improving its profitability:
- Achieved full-year positive cash EBITDA of ₹7.00 crore, compared to a ₹128.00 crore cash burn in the previous period
- Core business cash EBITDA more than doubled to ₹157.00 crore
- Net loss substantially reduced to ₹74.00 crore from ₹595.00 crore in the previous period
It's worth noting that the current losses are primarily attributed to ₹91.00 crore in ESOP expenses, suggesting that operational profitability may be even stronger when excluding this non-cash item.
Operational Efficiency
Shiprocket demonstrated impressive cost discipline. Despite the 24% revenue growth, total expenses remained flat, indicating improved operational efficiency and effective cost management strategies.
Management Commentary
Tanmay Kumar, CFO of Shiprocket, highlighted the significance of these results, stating that achieving full-year positive cash EBITDA is a pivotal milestone for the company. He emphasized that this achievement reflects the strength of Shiprocket's platform and the growing profitability across various segments of the business.
Conclusion
Shiprocket's financial results showcase a company on a strong growth trajectory, with improving profitability and operational efficiency. The combination of robust revenue growth, diversification of revenue streams, and significant reduction in losses positions Shiprocket well in the competitive e-commerce logistics sector. As the company continues to expand its services and optimize its operations, it will be interesting to observe how these positive trends evolve in the future.
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