The company noted that the audio business remained stable in the second half of FY24, with a shift towards online sales. Additionally, the headphone segment saw a decline despite a low base, and the speaker business also posted flat results.
However, Boat posted positive earnings before interest, taxes, depreciation and amortization (Ebitda) in FY24.
News website Entrackr first reported Boat’s FY24 results.
Backed by Warburg PincusBoat generates most of its revenue from audio devices such as headphones, earphones, speakers and sound bars.
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Founded by Aman Gupta and Sameer Mehta in 2015, it has raised $171 million to date, according to Tracxn data. according to International Data Corporation (IDC), Boat is India’s largest wearables company with 26.7% market share in the second quarter of 2024. The company’s focus on developing its wearable business through sales, marketing and pricing strategies has impacted its profitability. In the wearable segment, there was a sharp drop in the average selling price, along with fierce competition, leading to pressure on the company’s margins.
Despite this, Boat anticipates an improvement in Ebitda and profit before tax (PBT) margins in FY25, driven by initiatives such as optimizing warranty costs and reducing advertising and promotion expenses. .
According to a report released Monday by market research firm Counterpoint Research, smart watch shipments in India fell 32% year-on-year (YoY) in Q2 2024 as initial enthusiasm for these devices began to wane. This drop in demand took the industry by surprise, resulting in a substantial excess inventory.
At the ET Soonicorns Summit held in Bengaluru last month, Gupta revealed the company’s plans for an initial public offering (IPO) next year and international expansion in the UAE.
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