Livspace, an omnichannel home interior and renovation platform, experienced a 20.86% growth in the fiscal year ending March 2024. This comes after a significant 85% year-on-year growth in FY23. Despite the more modest increase in revenue, Livspace was able to control its losses effectively during this period.

Revenue Growth

Livspace’s revenue from operations rose to Rs 1,185.7 crore in FY24, up from Rs 981 crore in FY23. The company generates most of its revenue from home interior projects, which contributed 94% of the total income. This portion of the business saw a 22.7% growth, reaching Rs 1,110.65 crore in FY24, up from Rs 905.35 crore in the previous year.

In addition to project revenue, Livspace earned Rs 69 crore from product sales and related services. The company also added Rs 48.4 crore in income from interest on fixed deposits, bringing its total income to Rs 1,234 crore for FY24.

Managing Costs

Livspace has focused on keeping its costs under control. The cost of sales—including project materials and inventory—accounted for 35.6% of total expenses, amounting to Rs 586.8 crore. This was a 6.7% increase, but it remained stable as a percentage of overall costs.

One major area where Livspace managed to cut costs was employee benefits, which decreased by 11.6% to Rs 579 crore. This figure includes Rs 124 crore in employee stock option plan (ESOP) expenses. Other costs, like marketing, rent, brokerage, and technology expenses, also decreased, with the company spending Rs 1,647.8 crore in FY24, compared to Rs 1,768 crore in FY23.

Reduction in Losses

Livspace’s efforts to control spending paid off, as the company reduced its losses by 45.75%. Losses dropped to Rs 413.8 crore in FY24, down from Rs 762.8 crore in FY23. This improvement was reflected in better Return on Capital Employed (ROCE) and EBITDA margins, which improved to -79.5% and -27%, respectively. For every rupee earned, Livspace spent Rs 1.39.

Future Plans

Livspace has announced that it will be shifting its base to India from Singapore, a decision that has already been approved by its board. The company is also planning to go public in the next 18 to 24 months, according to co-founder Ramakant Sharma.

Challenges Ahead

Despite the positive steps, Livspace faces challenges in maintaining growth while continuing to reduce costs. The company must find a balance between cost-cutting and growth, as excessive cuts could hinder its operations. The next few years will be crucial for Livspace as it navigates these challenges on its path to profitability.

In summary, Livspace’s FY24 performance reflects a steady growth rate and significant reduction in losses. The company is positioning itself for future expansion and aims to go public soon, but it faces tough decisions in balancing costs and growth in the years ahead.