During the fiscal year that ended in March 2024, Libas, a direct-to-consumer business that specializes in ethnic and fusion clothing, generated close to Rs. 500 crore in revenue. However, at the same time period, profits fell 64 percent as a result of higher advertising and employee benefit expenditures.
Based on its financial statement obtained from the Registrar of Companies (RoC), Libas' operating revenue climbed 38 percent from Rs. 352 crore in FY23 to Rs. 487 crore in FY24.
Women's ethnic clothing brand Libas, which was founded online, sells dresses, kurtis, salwar suits, and bottoms made of cotton, silk, and georgette. In FY24, the company's only revenue came from the sale of these products.
The scale expansion was accompanied by a dramatic rise in overall costs. From Rs. 334 crore in FY23 to Rs. 483 crore in FY24, total expenses increased by 45 percent.
Libas's material costs continued to be its biggest expense, accounting for more than 61 percent of the total costs, which increased 41 percent to Rs. 296 crore. While shipping costs came to Rs. 49 crore, advertising expenditures rose 121 percent to Rs. 42 crore, and employee benefits rose 56 percent to Rs. 28 crore.
The earnings dropped 64 percent from Rs. 14 crore in FY23 to Rs. 5 crore in FY24 as a result of the dramatic increase in advertising and staff expenses. The business declared an EBITDA margin of 3.06 percent and a Retuurn on Capital Employed (ROCE) of 26.32 percent. Libas invested Re 0.99 per unit to generate every rupee of income.
