BillDesk Revenue Decline in FY24

BillDesk experienced a revenue decline of 12.8% year-on-year in FY24, marking a significant drop following its previous double-digit growth. The company’s financial performance was adversely affected, leading to reduced profits during the fiscal year ending March 2024.

Revenue and Operational Insights

The operational revenue for BillDesk fell to Rs 2,334 crore in FY24, down from Rs 2,678 crore in FY23, as per the consolidated financial statements filed with the Registrar of Companies.

BillDesk generates income primarily by charging fees for electronic transaction processing and settling, which accounted for more than 70% of its total operating revenue, amounting to Rs 1,591 crore in FY24. Approximately 16% of the earnings were derived from managing client loyalty programs, while the rest came from selling products like PINS, e-top-up subscriptions, and other activities.

Non-Operating Income and Total Revenue

In terms of non-operating income, BillDesk earned Rs 112 crore from interest and gains on financial assets. This brought the company’s total revenue to Rs 2,446 crore for FY24, a decline from Rs 2,765 crore in FY23.

Cost Structure and Expenditures

For the payment processing company, bank fees and related services constituted the largest expense, comprising 78.8% of the overall costs. Following the revenue drop, these costs fell by 16% to Rs 1,804 crore in FY24. However, employee benefit expenses rose notably by 22.4% to Rs 300 crore. This increase in spending, combined with costs related to data, communication, legal services, and information technology, brought total expenses to Rs 2,289 crore for the fiscal year.

Profit and Efficiency Metrics

The combination of lower revenue and increased employee costs resulted in a 14.8% decrease in profit, bringing it down to Rs 121 crore in FY24 from Rs 142 crore in FY23. Additionally, the company’s Return on Capital Employed (ROCE) and EBITDA margins saw slight reductions, finishing at 5.77% and 9.24%, respectively.

Asset Overview

On a per-unit basis, BillDesk’s expenditure was Rs 0.98 for every rupee earned during the fiscal year. By the close of FY24, total current assets amounted to Rs 2,612 crore, inclusive of Rs 930 crore in cash and bank balances.