Despite a downturn in the wearable market, Gurugram-based wearables brand Noise maintained stable revenue for the fiscal year ending March 2024. The company posted revenue from operations of Rs 1,431 crore, a modest 0.4% growth compared to Rs 1,426 crore in FY23, according to its financial filings. Total revenue, including scrap, allied services, and interest income, reached Rs 1,440 crore for FY24.
Wearables contributed 79.8% to the overall revenue, while audio products accounted for 19.7%. However, the cost of procurement, Noise’s largest expense, amounted to Rs 989 crore, representing 67.7% of total spending. Employee benefits saw a sharp 53% increase to Rs 78 crore, including Rs 6 crore in ESOP costs, while marketing and advertising expenditures totaled Rs 286 crore. The company’s total expenses for the year stood at Rs 1,460 crore.
The rise in costs, combined with flat revenue growth, resulted in a Rs 20 crore loss for Noise in FY24. Despite this, the company maintained a positive EBITDA margin of 0.83% and an ROCE of 5.36%. On a per-unit basis, Noise spent Rs 1.02 to earn a rupee.
Noise continued to expand its global footprint, incorporating a wholly-owned subsidiary, Noise Lab Co., in China and forming a joint venture with Stelltek Technologies. By March 2024, the firm reported current assets of Rs 773.26 crore, including cash and bank balances of Rs 85.4 crore.
During the fiscal year, Noise raised $10 million in a strategic funding round led by Bose, valuing the company at $460 million. This funding marks a milestone for the Gaurav Khatri-led firm, positioning it for future growth.
Competitor boAt also experienced flat growth, with a 5% dip in revenue to Rs 3,122 crore in FY24. Despite this, boAt reported a positive EBITDA, signaling a stronger financial performance.
An IDC report highlighted the Indian wearables market’s first-ever decline, with shipments falling by 10% to 29.5 million units in the June 2024 quarter. Contributing factors included unsold inventory and limited product innovation. Noise’s shipments fell 13.9%, with competitors Oppo, OnePlus, Fire-Boltt, and boAt also experiencing declines.
While market challenges persist, Noise’s ability to sustain revenue and secure strategic investments demonstrates resilience and a focus on long-term growth.