Noise posts Rs 1,431 Cr revenue in FY24, remains EBITDA positive

Despite the decline in the overall wearable market, Gurugram-based gadget and wearables brand Noise maintained steady revenue year-on-year for the fiscal year ending March 2024.

Noise’s revenue from operations grew a modest 0.4% to Rs 1,431 crore in FY24 from Rs 1,426 crore in FY23, its annual financial statements accessed from the Registrar of Companies show.

Income from the sale of wearables formed 79.8% of the overall revenue, while the sale of audio accounted for 19.7%. Scrap, allied services, and interest income took the overall revenue to Rs 1,440 crore in FY24.

For the gadget and wearables brand, the cost of procurement of materials was the largest cost center forming 67.7% of the overall expenditure. This cost stood at Rs 989 crore in FY24.

The firm’s employee benefits grew 53% to Rs 78 crore in FY24  which also includes Rs 6 crore as ESOP cost. Noise spent Rs 286 crore on marketing and advertising. Noise’s warranty, freight, legal, and other overheads pushed its overall expenditure to Rs 1,460 crore in FY24.

See TheKredible for the detailed cost breakup.

The flat scale and increased employee benefits led Noise to post a loss of Rs 20 crore in the fiscal year ending March 2024. Its ROCE and EBITDA margin stood at 5.36% and 0.83%, respectively. On a unit level, the company spent Rs 1.02 to earn a rupee in the last fiscal year.

Importantly, during the previous fiscal year, Noise incorporated its wholly-owned subsidiary named Noise Lab Co. in China. It also has a joint venture with 50% ownership with Stelltek Technologies. During the fiscal year ended March 2024, the firm had a current assets of Rs 773.26 crore which includes cash and bank balances of Rs 85.4 crore.

During FY24, Noise announced its maiden funding from global audio giant Bose. The Gaurav Khatri-led firm raised $10 million in a strategic round at a valuation of $460 million.

Noise competitor boAt also reported a flat growth in the last fiscal year. The company’s revenue declined by 5% to Rs 3,122 crore in FY24, but it achieved a positive EBITDA in FY24, marking a return to profitability and signaling stronger unit economics compared to FY23.

An IDC report suggested that the Indian wearables market saw its first-ever decline in the June 2024 quarter, dropping 10% to 29.5 million units. This drop is due to excess unsold stock and limited innovation. Oppo and OnePlus had the steepest declines at 35.8%, followed by Fire-Boltt (24.3%), Noise (13.9%), and boAt (9.8%).