OLX India books 41% growth in profits for FY19, revenues up 123%
Classifieds platform OLX India reported a 41% growth in net profits at Rs 22 crore for the financial year 2018-19, marking the third consecutive year that the company booked profits.
The Gurugram-based company plans to re-deploy the profits earned to maintain its operations. “Thus, the directors do not recommend any dividend on the equity shares for the Financial Year ended March 31, 2019,” the company said in a regulatory filing.
In FY18, OLX India reported a 98% on year increase in its bottomline at Rs 15 crore against Rs 8 crore a year earlier.
The Naspers-owned company, which generates revenues from online advertisements and commissions on transactions completed through its platform, saw its topline in FY19 jump 123% to Rs 400 crore. Revenues from advertisements stood at Rs 220 crore, which included Cash My Car, the company’s used cars trading business.
The company’s total expenditure more than doubled to Rs 365 crore during the financial year ended March 31.
Recently, OLX underwent a branding revamp exercise and also roped in top executives to aid its growth. It hired Matrix Atlantic Capital director Sapna Arora as its chief marketing officer and promoted its executives to strengthen the leadership team.
OLX’s competitor Quikr, which is yet to become profitable, has not declared its financial results for FY19. For 2017-18, Quikr reported net losses at Rs 233 crore.