BUSINESS HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2016:
Losses have narrowed to less than Rs 2 crore in Q1 2016-17 from Rs 5 crore in the previous quarter
Net Revenue of Rs 11.35 crore for Q1 16-17 as against Rs 6.80 crore in Q1 FY 15-16
Contribution margin of Rs 18 lakhs for Q1 16-17
First Indian e-tailer to breakeven on direct cost basis in this quarter
In Q2 2016-17 the company to set up third fulfillment centre in Mumbai
Palred Technologies Limited (formerly Four Soft Limited) that owns and operates LatestOne.com, India’s only e-tailer specialized in tech and mobile accessories, has announced its financial results for the quarter ended June 30, 2016.
The company has declared a gross revenue of Rs 20 crores and net revenue of Rs 11.35 crores for Q1 FY 16-17, recording a growth of 67% as compared to the same quarter of FY 15-16. The total direct cost of operations including cost of goods, delivery, sales & marketing was Rs 11.10 crores resulting in a contribution margin of Rs 18 lakhs making LatestOne.com the first Indian e-tailer to breakeven on a direct cost basis in this quarter.
Moreover, the quarterly losses of Rs 6.75, 4.14, 4.20 and 1.97 crores in the four sequential quarters reflect the operational and financial efficiencies, the company has achieved in the last 12 months. While the average monthly Net Revenue has increased from Rs 2.75 crores to Rs 4.00 crores during the corresponding period.
Statement from Mr. Palem Srikanth Reddy, Founder and Chairman, LatestOne.com (Palred Technologies):
“To reach the biggest milestone of breakeven on direct cost basis, we have achieved substantial efficiencies in all departments including digital sales, procurement, operations and technology. However now the single challenge facing the company is undelivered product returns. The Company is taking several initiatives to reduce this number from 35% to 25%. If this target is achieved even at the current run rate, LatestOne.com would become the first profitable Indian e-commerce firm to break even on the fully EBITDA basis”
Till date, LatestOne.com has delivered more than one million orders to its customers across the Country. With more than 10,000 SKU’s, LatestOne.com has the largest catalogue and inventory in the tech and mobile accessories vertical. With advanced technology, the company has also reduced the cost of sales by way of high conversion rate from 1.25 lakh visitors per day.