WROGN, the men’s apparel brand backed by cricket icon Virat Kohli, has faced a significant decline in revenue and profits over the past year, with its revenue plummeting by 29.2% and losses rising 28.2% to Rs 56.76 crore. Despite attempting to cut costs, the company’s overall expenditure decreased by 24.7% to Rs 305.56 crore, but its outstanding debt surged to Rs 636.58 crore.
Key Highlights:
- WROGN’s revenue from operations dwindled to Rs 243.75 crore in FY24, a 29.2% drop from Rs 344.3 crore in FY23.
- The company’s losses jumped to Rs 56.76 crore in FY24, a 28.2% increase from Rs 44.26 crore in FY23.
- Cost of materials accounted for 53.6% of total expenses, which slid 29% to Rs 163.91 crore in FY24.
- Employee benefits expenses decreased by 7.5% to Rs 32.26 crore, while commission paid to selling agents declined by 28% to Rs 30.83 crore.
- WROGN attempted to cover losses by cutting costs, but its EBITDA margin and ROCE stood at -6.04% and -72.07% respectively.
- Aditya Birla’s TMRW acquired a 16% stake in WROGN at a $105 million valuation, and the company has raised around $90 million from investors since its inception in 2014.
- The Indian fashion industry is expected to reach $43.2 billion by 2025, with the fashion category attracting a large set of consumers.
Conclusion:
WROGN’s disappointing numbers indicate a significant challenge for the company, which has been struggling to grow amidst a broader slowdown in the fashion industry. The company’s attempt to cut costs has not yet yielded positive results, and its outstanding debt remains a significant concern. The investment from Aditya Birla’s TMRW may provide a much-needed boost to the company, but it remains to be seen how WROGN will manage to turnaround its fortunes in the face of intense competition and a challenging market environment.