DailyObjects, the Gurugram-based Direct-to-Consumer (D2C) brand known for its tech accessories and lifestyle products, has recorded an impressive 34% revenue growth in the fiscal year ending March 2024. Despite the revenue jump, the company reported a modest loss of Rs 3.9 crore compared to a small profit in the previous year.
According to its consolidated financial statement filed with the Registrar of Companies (RoC), DailyObjects’ revenue from operations rose to Rs 84.4 crore in FY24, up from Rs 63.2 crore in FY23. The company, which specializes in products like bags, wallets, charging solutions, and stationery, saw 98.8% of its revenue come from product sales, which increased by 33.6% to Rs 83.38 crore. The remaining income was generated through shipping and delivery charges.
However, the increase in revenue was offset by a 40% rise in the cost of procurement, which climbed to Rs 42.28 crore in FY24, compared to Rs 30.26 crore in FY23, accounting for 50% of the total expenses. Additionally, the company experienced a 24% rise in employee benefits and a 46.5% increase in marketing and advertising expenses, which reached Rs 11.34 crore and Rs 14.33 crore, respectively.
Shipping, delivery, legal, and overhead costs also surged, pushing total expenses up by 33.3% to Rs 84.2 crore. This combination of increased spending led DailyObjects to report a loss of Rs 3.92 crore for FY24, in contrast to a marginal profit of Rs 0.06 crore the previous year.
Excluding an exceptional cost of Rs 6.14 crore related to the write-off of prior receivables, the company’s financial performance showed a net loss. Its Return on Capital Employed (ROCE) and EBITDA margin stood at -43.98% and -4.3%, respectively. Despite the losses, DailyObjects reported current assets of Rs 20.76 crore at the end of FY24, with a unit cost that matched its revenue, meaning the company spent Re 1 to earn Re 1 during the year.
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