PharmEasy cuts losses by 51% to Rs 2,533 Cr in FY24, revenue dips 15%

API Holdings, the parent company of the troubled e-pharmacy and pathology brand PharmEasy, implemented significant cost-cutting measures in FY24. As a result, it reduced losses by over 50%, but the company’s revenue declined by nearly 15% during the same period.

PharmEasy’s revenue from operations shrank 14.8% to Rs 5,664 crore in FY24 as compared to Rs 6,644 crore in FY23, the company’s financial statement reviewed by Entrackr shows.

PharmEasy sells pharmaceutical and cosmetic products and provides diagnostic services and teleconsultations through mobile and web apps.

PharmEasy generated around 88% of its operating revenue from the sale of pharmaceutical and cosmetic products while the remaining came from rendering services such as diagnostic, teleconsulting, delivery, warehousing, and commission earned on facilitating pathological tests.

The Mumbai-based firm also made Rs 94.6 crore worth non-operating income via interest and gain on assets which pushed its total revenue of Rs 5,758 crore during the last fiscal year.

Moving towards the expenses, the cost of materials remains the largest cost element forming 67.3% of the total expenditure. This cost went down 14.8% to Rs 4,880.3 crore in FY24. The finance cost went up 9.4% to Rs 727.9 crore while the company incurred Rs 699.3 crore on employee benefits during the year. The employee benefit cost also includes ESOP cost worth Rs 221.8 crore.

To check complete Expense Breakdown visit thekredible.comView full data

Contractual payment for delivery associates was another significant cost at Rs 78.7 crore. Other expenses include legal, professional, sales promotion, and marketing. The company’s overall expenses slipped 19.2% to Rs 7,254.8 crore in FY24 from Rs 8,974 crore in FY23. 

For more information, visit TheKredible.

Followed by the cost-cutting measures, the firm controlled its losses by 51.4% to Rs 2,533.5 crore in FY24 in contrast to Rs 5,211.7 crore in FY23. Its operating cash outflows also improved by 91.8% to Rs 61.13 crore. While the company’s outstanding losses mounted to Rs 13,352 crore or $1.6 billion at the end of FY24.

PharmEasy’s EBITDA (loss) stood at Rs 552 crore in FY24 whereas its EBITDA margin and ROCE improved to -9.59% and -15.71%, respectively. On a unit level, PharmEasy spent Rs 1.28 to earn a rupee in FY24. Its current assets went up 37.1% to Rs 3,476.2 crore while cash and bank balances grew 69.4% to Rs 328 crore in FY24 from Rs 193.6 crore in FY23.

As per TheKredible, PharmEasy has raised around $1.1 billion to date from Ranjan Pai’s MEMG, Prosus, and Temasek, among others. It raised $216 million in funding in a down round during April this year and was valued at around $710 million (post-money). However, global asset management company Janus Henderson slashed its valuation by 91.8% to $458 million in September this year.

PharmEasy, which filed draft papers for an IPO in November 2021, withdrew the application a month later, citing unfavorable market conditions and strategic factors. Three years on, the timeline for its listing remains uncertain.