Wearables maker Noise posted a net loss in FY24 from a net profit a year before, weighed down by higher costs and muted revenue growth.
The Gurugram-based company reported a net loss of Rs 20 crore in the year ended March, compared to net profit of Rs 88 lakh in FY23, showed financial data sourced from data intelligence platform Tofler.
Operating revenue remained largely unchanged at Rs 1,430 crore compared to Rs 1,426 crore in FY23.
The company, which secured its maiden fundraise last year, saw a 40% surge in employee benefit expenses at Rs 71 crore, while finance costs rose nearly 50% to Rs 29.5 crore. Total expenses increased to Rs 1,460 crore from Rs 1,432 crore in FY23.
ET reported on November 5 on the continued consumption slump in wearable devices such as earphones and smartwatches for the last 12-15 months, impacting all companies.
India’s largest wearables maker, Warburg Pincus-backed Boat, clocked a 5% drop in FY24 revenue at Rs 3,122 crore, while smaller rival Boult saw lower profit during the year amid higher expenses.
Noise raised $10 million last December from US-based audio equipment major Bose Corporation in a deal that valued the company at around $420 million.
According to data from researcher IDC, Noise ranked the second largest wearables brand in India in the June quarter with a 13% market share, behind Boat with 26.7% share. Boult stood third with a 8.1% share.
However, Noise was the market leader in the smartwatch category with a 25.7% share.
The smartwatch segment is the worst hit by the broader slowdown in wearables market with longer-than-expected consumer replacement cycles, increasing inventory levels.
The September quarter is expected to see a 30% decline in smartwatch shipments, which analysts say is high for a quarter preceding the festive season that began in October.
