Highlights
Wonderchef’s Revenue Growth and Financial Performance
Wonderchef, the renowned kitchen appliance brand supported by celebrity chef Sanjeev Kapoor, continues to demonstrate impressive year-on-year revenue growth and achieved profitability for the fiscal year ending in March 2024.
Financial Highlights
- Revenue from operations surged by 20%, reaching Rs 377.6 crore in FY24, up from Rs 315.5 crore in FY23, as per the annual financial statement obtained from the Registrar of Companies (RoC).
- Total income rose to Rs 381 crore in FY24, compared to Rs 322 crore in FY23, with Rs 3.3 crore stemming from interest income.
Product Range and Revenue Sources
Wonderchef provides a diverse array of kitchen and home appliances, which includes:
- Non-stick cookware
- Pans
- Chimneys
- Flasks
- Bakers
- And more.
The company operates through multiple channels, such as e-commerce platforms and quick commerce, with product sales representing its primary revenue stream.
Cost Management
The cost of procurement stands as the largest expense for Wonderchef, accounting for 67% of its total costs:
- The procurement cost increased by 25%, totalling Rs 251.6 crore in FY24.
- Advertising expenses dropped significantly by 25.44% to Rs 17 crore, indicating a shift towards more economical marketing tactics.
- Employee benefit expenses increased moderately by 12.3% to Rs 32 crore.
- Transportation costs rose by 8.3% to Rs 17 crore.
Overall, total expenses grew by 16.7%, amounting to Rs 374.6 crore in FY24, compared to Rs 321 crore in FY23.
Profitability and Financial Ratios
This combination of ongoing growth and efficient cost management allowed Wonderchef to achieve a net profit of Rs 1.5 crore in FY24, a significant improvement from a loss of Rs 52 crore in FY23. Key financial metrics include:
- Return on Capital Employed (ROCE): 3.88%
- EBITDA Margin: 2%
At a unit level, the company incurred Re 0.99 to generate a rupee of operating revenue in FY24.
Valuation and Funding
Wonderchef’s enterprise value to revenue multiple was recorded at 1.6X in FY24. The company possessed current assets valued at Rs 222.6 crore, which included Rs 33 crore in cash and bank balances from the previous fiscal year.
To date, Wonderchef has secured a total funding of $50 million, including a recent funding round of $20 million led by Sixth Sense Ventures in 2021. Based on data from various startup intelligence sources:
- Sixth Sense Ventures holds the largest external stake at 15.83%, followed by Amicus Capital.
- Sanjeev Kapoor and his wife, Alyona Kapoor, collectively own 19.57% of the company.
Future Prospects
Last year, Ravi Saxena, founder and CEO of Wonderchef, revealed that the company aims to achieve around Rs 820 crore in revenue for FY25.
Wonderchef has successfully carved a niche within a crowded market by offering innovative products and effective distribution methods. However, with the founders approaching their 60s, the company faces the challenge of sustaining growth amid rapid market changes. The shift in consumer preferences, particularly regarding non-stick cookware and the increasing popularity of cast iron utensils, presents a complex landscape for cookware manufacturers in India.
Achieving profitability places Wonderchef in a favourable position for potential acquisition opportunities, especially if funding conditions become challenging. This scenario cannot be overlooked, despite the bold ambitions of more than doubling turnover within a year, as attracting suitors may indeed be part of the strategy.