Quikr, once a prominent player in India’s online classifieds sector, has reported its first-ever net profit in the fiscal year 2023-24 (FY24). However, this milestone comes with significant financial concerns, as the company’s current assets have dwindled to just ₹20 crore, raising questions about its long-term sustainability.
📉 Decline in Revenue
In FY24, Quikr’s revenue from operations fell by 12%, dropping to ₹45 crore from ₹51 crore in FY23. This decline reflects the company’s ongoing struggle to maintain its market position amidst increasing competition and changing consumer preferences.
💼 Revenue Breakdown
The majority of Quikr’s income in FY24 came from:
- Lead Referral Fees: ₹22 crore
- Advertising Services: ₹17 crore
- Commission and Other Services: ₹3 crore each
Additionally, the company earned ₹11 crore from provision write-backs and gains on financial assets, bringing the total income to ₹56 crore.Medial
🧾 Expense Management
Quikr implemented cost-cutting measures to improve its financial health:
- Employee Benefits: Reduced by 10% to ₹37 crore, yet still accounted for 69% of total expenses.
- Advertising Expenses: Increased to ₹3 crore from ₹1 crore in FY23, indicating a push to regain market visibility.
- Depreciation and Amortization: Significantly decreased from ₹5 crore in FY23 to ₹15 lakh in FY24, reducing non-cash expenses.
⚠️ Financial Concerns
Despite achieving profitability, Quikr’s financial position remains precarious:
- Current Assets: Stand at only ₹20 crore, limiting the company’s ability to manage short-term obligations and invest in growth opportunities.
This situation underscores the challenges Quikr faces in sustaining operations and competing effectively in the market.
🏁 Conclusion
Quikr’s first-ever profit in FY24 marks a significant achievement. However, the company’s declining revenue and limited current assets highlight the need for strategic planning and potential restructuring to ensure long-term viability in the competitive online classifieds industry.
