New Delhi, April 25 Boult Audio, the bootstrapped consumer electronics brand, has reported a 37 per cent drop in its net profit to Rs 2.5 crore for the fiscal year 2023-24 (FY24), compared to Rs 4 crore in FY23.
The Delhi-based company, which designs and manufactures wireless earbuds, headphones, smartwatches, and speakers, saw its revenue from operations increase to Rs 697 crore in FY24 from Rs 498 crore in the previous fiscal, as per its financials.
Boult also made Rs 5 crore from non-operating revenue, bringing its total revenue to Rs 702 crore.
However, the rising expenses, particularly in materials, advertising, and post-supply discounts, outpaced the revenue growth.
Boult’s cost of material consumed surged by 25 per cent to Rs 402 crore, making up nearly 58 per cent of its total expenses.
Advertising expenses jumped by 74 per cent to Rs 162 crore, and post-supply discounts saw an 84 per cent increase to Rs 70 crore, as per an Entrackr report.
As a result of these rising costs, Boult's overall expenses climbed by 41 per cent to Rs 699 crore in FY24, according to its financials.
This increase in operational costs significantly impacted the company’s bottom line, leading to a sharp decline in its net profit.
The company’s domestic sales saw a growth of 45 per cent, reaching Rs 620 crore, while international sales remained stable at Rs 77 crore, contributing 11 per cent to the total revenue.
However, unlike its competitors, Boult has maintained its bootstrapped status and is led by co-founders Varun Gupta and Tarun Gupta, who own a combined 49.5 per cent stake in the company.
According to industry experts, while the company is making efforts to build its brand and prepare for high-volume sales, the growing competition in the consumer electronics market and the rising cost pressures have made it difficult for Boult to maintain profitability.
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