PharmEasy FY24 results: Revenue falls nearly 15%, losses narrow by 51%

PharmEasy Narrow Losses Despite Revenue Drop.

Expert Analysis

• Revenue Decline: PharmEasy’s consolidated revenue from operations declined by 14.7% to ₹5,664 crore in FY24 from ₹6,643 crore in FY23.

• Drop in Total Income: Total income fell to ₹5,758 crore in FY24 from ₹6,699 crore in FY23.

• Loss Reduction: PharmEasy’s losses narrowed by 51% to ₹2,533 crore in FY24 from ₹5,211 crore in FY23, aided by a 79% reduction in goodwill impairment charges to ₹582 crore from ₹2,825 crore in FY23.

• Expense Reduction: Expenses dropped 19% from Rs 8,974 to ₹7,254 crores, with stock-in-trade costs reducing to ₹4,572 crores in FY24 from ₹5,512 crore in FY23 and employee expenses to ₹699 crores from ₹1,283 crores.

• Increase in Finance Costs: Finance costs increased from Rs 665 crore in FY23 to ₹728 crore in FY24.

• Valuation Markdown: API Holdings, valued at $5.6 billion in 2021, saw a 92% markdown to $458 million, as per SEC filings.

• Funding at Reduced Valuation: In April 2024, API Holdings experienced a 90% haircut in its valuation after securing $216 million in funding from Manipal Education and Medical Group (MEMG) and existing investors.