Bombay Shaving Company, a popular grooming and personal care brand, reported a loss of Rs 62.15 crore in the financial year 2024 (FY24). Although this is an improvement from the Rs 80.25 crore loss it faced in FY23, the company continues to grapple with rising costs and financial challenges.
The company’s expenses surged by 12.5% in FY24, reaching Rs 295.57 crore compared to Rs 262 crore in FY23, as per data from the Registrar of Companies (ROC).
Material costs saw a significant rise of 34.39% year-on-year, amounting to Rs 118.76 crore. Advertising expenses reached Rs 85.90 crore, while Rs 36.79 crore was spent on employee benefits.
Interestingly, delivery and handling expenses saw a decline of 9.41%, falling to Rs 18.78 crore in FY24. However, the company spent Rs 35.34 crore on miscellaneous items during the same period, further contributing to its financial strain.
Rise in Operating Income
Despite the losses, Bombay Shaving Company recorded a 27.38% year-on-year growth in operating income. The company earned Rs 225.85 crore in FY24, up from Rs 177.30 crore in FY23.
Including other income of Rs 7.6 crore, the total income for FY24 stood at Rs 233.4 crore.
The company’s Return on Capital Employed (ROCE) and EBITDA margin were negative at (-) 74.66% and (-) 22.90%, respectively. This indicates the company spent Rs 1.31 to earn a single rupee in FY24, highlighting its struggle to achieve profitability.
Company Assets and Investments
Bombay Shaving Company’s current assets were valued at Rs 203 crore in FY24, which included Rs 72.5 crore in cash and bank balances.
The startup has raised a total of $51.5 million in funding so far. Its major investors include Sixth Sense Ventures, Colgate-Palmolive, Malabar Investments, Reckitt, and Patni & Family.
As a direct-to-consumer (D2C) grooming and personal care startup, Bombay Shaving Company offers a wide range of products. Its portfolio includes shaving creams, haircare, skincare, and beard care products.
The company competes in the grooming segment with brands like Ustraa, Beardo, and The Man Company, aiming to capture a larger share of the growing market.
Challenges of Bombay Shaving Company
While the increase in operating income is a positive sign, the rising expenses and continued losses present significant challenges for Bombay Shaving Company.
With a strong product lineup and backing from major investors, the company has the potential to improve its financial health. However, achieving profitability will require a careful balance of cost management and revenue growth.
Bombay Shaving Company’s performance in FY24 reflects both progress and challenges. While its income has grown, rising costs and negative profitability metrics remain hurdles.
As the brand continues to innovate and expand its presence in the grooming market, it will need to address these financial issues to secure long-term success.
