WheelsEye Experiences Slower Growth in FY24

WheelsEye, a logistics SaaS firm, has noted a deceleration in its growth since FY22, with revenue growth showing signs of flattening in FY24. The company reported a modest revenue growth of 7% for the fiscal year ending March 2024 but managed to decrease its losses by an impressive 71% during the same timeframe.

Revenue and Earnings Overview

The company’s revenue from operations rose to Rs 218.4 crore in the last fiscal year, up from Rs 203.8 crore in FY23, as indicated in its standalone financial statement sourced from the Registrar of Companies (RoC).

WheelsEye offers essential trucking solutions for businesses, providing services such as software, GPS tracking, and FASTag solutions for truck fleet operators. Revenue from trucking services climbed by 18.9% to Rs 129.6 crore, while income from software products increased by 7.85% to Rs 57.7 crore. Additionally, income from other sources contributed another Rs 31 crore.

Moreover, the company generated an extra Rs 35 crore from interest income, bringing its total income for FY24 to Rs 253 crore.

Cost Management Strategies

On the expense front, WheelsEye’s primary cost component, employee benefit expenses, saw a decline of 28.72% to Rs 135 crore. The costs related to materials saw a slight increase of 3.43% to Rs 93.6 crore, while commissions decreased by 9.64%, settling at Rs 7.5 crore. Miscellaneous expenses for the last fiscal year totalled Rs 56.9 crore.

Ultimately, WheelsEye succeeded in reducing its overall expenses by 17.23%, bringing the total down to Rs 293 crore in FY24. This careful cost optimisation played a vital role in achieving a 71% reduction in net losses, bringing them down to Rs 39 crore in FY24. The company also showcased improved financial metrics, with ROCE moving up to -44.85% and EBITDA margin improving to -13.76%. Notably, costs were efficiently managed, with WheelsEye spending Rs 1.34 to earn every rupee in FY24.

Asset Management Insights

In terms of asset management, WheelsEye recorded Rs 186 crore in current assets for FY24, which included Rs 142 crore in cash and bank balances. As per startup data intelligence platforms, the parent entity of WheelsEye is located in the USA, holding 99.9% of the Indian subsidiary named WheelsEye Technology INC.

The significant reduction in losses marks a favourable turnaround for WheelsEye, which is likely a primary factor behind the slowdown in growth. This strategic move suggests an intention to pursue public market opportunities while the firm remains well-placed for renewed growth shortly. Over the past year, the logistics sector has experienced a growth slowdown, attributed to heightened efficiency, yet this trend is expected to stabilize soon for WheelsEye.