Thursday 31 October 2019

Myntra reports more than three-fold increase in losses

BENGALURU : Myntra Designs Pvt Ltd, the holding company of online fashion retailer Myntra, has reported a more than three-fold rise in net loss for the financial year ending 31 March, 2019, compared to the previous fiscal. During the 2018-19 period, the company reported a net loss of 539 crore, a 257% increase from the net loss of 151.20 crore in FY 18, according to documents filed with the Registrar of Companies (RoC) and data sourced from business intelligence platform, Tofler.
Flipkart-owned e-commerce platform Myntra’s revenues in 2018-19 were up by 155% to 1089 crore compared to 427 crore in the previous financial year.
Myntra Designs's total expenses for the fiscal increased by 76% over the previous year. The company reported total expenses of 1,628 crore, compared with 926 crore last fiscal. There was a significant increase in employee benefit expenses and other expenses, while finance costs and depreciation cost had decreased over the previous financial year. Employee benefit expenses increased by 52% over last year - from 279 crore in FY 2018 to 425 crore in FY 2019.
A Myntra spokesperson said they do not comment on filings.
The e-commerce platform is owned by online retailer Flipkart. Mint had reported in September this year that Walmart-owned Flipkart is aiming for a gross merchandise volume (GMV) of about 1 trillion (about $14 billion) this fiscal year, up at least 45% from a year ago.The Flipkart Group - including Jabong and Myntra - had posted a GMV of $7.5 billion for FY18, according to British investment bank Barclays.
Myntra acquired fashion portal Jabong in 2016. In November last year, Mint had reported that Walmart would lay off around 200 employees at Jabong and integrate the online fashion retailer completely into Myntra.

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