The net total income of the company was Rs 1718.5 crore in the current fiscal as against Rs 1088.8 crore in the previous fiscal
Online fashion retailer Myntra Designs’ advertisement expense jumped to Rs 468 crore for the fiscal ended 31st March 2020 from Rs 395.2 crore in the previous fiscal.
The advertising promotional expense has climbed to Rs 552.9 crore in FY20 from Rs 409.6 crore in the previous fiscal, according to Registrar of Companies filing shared by market intelligence firm Tofler.
Apart from advertisement expense, the advertising promotional expense also includes business promotion expenses, which increased to Rs 84.8 crore in FY20 from Rs 14.4 crore in FY19.
The company generates its revenue from marketplace services, logistics services and consultancy services to various brands. However, the company noted that it is currently considering and exploring viable business opportunities with the support of continued financial support of its intermediate holding company.
The company’s net loss increased by 38% to Rs 744.3 crore during the financial year under review as against the net loss of Rs 539.2 crore in the previous financial year.
The revenue from marketplace services increased to Rs 951.1 crore from Rs 671.6 crore. Revenue from logistic services more than doubled to Rs 544.2 crore from Rs 205.1 crore. Consultancy services revenue stood at Rs 34.3 crore as against Rs 75.4 crore.
The company report other operating revenue of Rs 145.8 crore compared to Rs 89 crore.
The company stated that the marketplace services generates revenue primarily from transaction fees paid by vendors in marketplace. Revenue related to transaction fees and any related fulfilment fees earned from these arrangements are recognised when the services are rendered, which generally happens at the time underlying sales has been concluded.
Revenue from logistics services is recognised at a point in time when the products are delivered to the end customers while revenue from consultancy services is recognised as and when services are provided over a period of time.
The company noted that other revenue primarily includes sales of advertising services, which are recognized as ads are delivered based on the number of clicks (which are generated each time users on the company’s platforms click through its advertisements to an advertiser’s designated website) or impressions (i.e., the number of times that an advertisement appears in pages viewed by users of the company’s platforms).
FK Myntra Holdings Private Limited, Singapore is the holding of Myntra Designs while Flipkart Private Limited, Singapore is the intermediate holding company.