boAt surpasses Rs 1,500 Cr revenue in FY21

Consumer electronic startup boAt has been one of the leading sellers of wearables and audio accessories in India for the last couple of years. The company has been profitable and crossed Rs 1,500 crore revenue mark in FY21.

boAt registered a 2.2 times surge in operating revenues which grew from Rs 700.44 crore in FY20 to Rs 1,511.7 crore in FY21. In terms of sales, wireless earphones and headphones formed the largest product line, accounting for 62.7% of its operating revenue during FY21. These sales grew by 2.5 times to Rs 947.4 crore in FY21 from Rs 375.7 crore in FY20.

The year-on-year growth of wired earphones and other related accessories (including cables and chargers) was relatively timid, growing 30.4% and 19.3% respectively, during FY21. Its warranty claim related expenses grew by 93% to Rs 52.7 crore in FY21 from Rs 27.3 crore spent in FY20.

The Employee benefit expenses grew by 125.7% YoY to Rs 14.31 crore (including director remuneration of around Rs 2 crore).

The expense of procuring its stock in trade is the single largest cost incurred by the company, accounting for nearly 73% of the annual expenditure. These expenses grew 2.3X from Rs 452.5 crore in FY20 to Rs 1,034.03 crore in FY21. The cost of freight and distribution made up 8.1% of the annual costs and grew by 57.6% YoY to Rs 115.53 crore during FY21.

With major operation functions such as production and after-sales outsourced, boAt operates with a team of employees with staff expenses accounting for a mere 1% of its annual costs. The brand is also looking to enter into the Indian government’s PLI scheme soon.