Income of Cult.fit Crosses Rs 1,000 Crore in FY24

Fitness technology company Cult.fit has achieved a major point in FY24. The company achieved a total income of over Rs 1,000 crore consistently to depict the growth trend. This major accomplishment is realised as there are changes in leadership and continuous operational endeavors.

New Leadership Drives Growth

In FY24, new leadership emerged as a board decision as Naresh Krishnaswamy took over as the Chief Executive Officer. Bansal previously ran the company, but he stepped down and took the position of executive chairman. Mr. Krishnaswamy saw the growth of the company’s operating revenue in his tenure by 33.6 percent. It rose up from Rs 694 crore in the FY23 to Rs 927 crore in the FY24. Other income was down however total income stood at Rs 1,027 crore.

Fitness subscriptions remained a major revenue driver, contributing 72.3% to the total. Services such as Cultpass and Cult.fit centres saw a 46.6% revenue increase to Rs 670 crore. Meanwhile, the sportswear and fitness equipment segment contributed Rs 257 crore.

Steady Losses Amid Rising Costs

While revenue scaled new heights, losses remained steady. Cult.fit reported a loss of Rs 535 crore in FY24, slightly up from Rs 534 crore in FY23. This stagnation was attributed to a decline in miscellaneous income and rising operational expenses.

Expenditure across multiple categories increased significantly. Employee benefit costs reached Rs 324 crore, with salaries contributing Rs 236 crore. Share-based payments added another Rs 57 crore to the total.

Other notable cost increases include:

• Material Costs: Up 19.6% to Rs 396 crore.
• Advertising and Promotion: Increased by 40.3 percent to Rs 188 crore.
• Legal Expenses: Rose by 57 percent for Rs 124 crore.

Hybrid Model and Expansions Fuel Revenue

Cult.fit operates a hybrid fitness model, combining digital services with physical fitness centres. The company provides subscription-based plans such as Cultpass, which grants access to gyms, group classes, and virtual training. This model has expanded Cult.fit’s reach across 300 Indian cities, enabling revenue growth.

The acquisition of Gold’s Gym India and other fitness brands in recent years solidified Cult.fit’s dominance. These strategic acquisitions, however, added to operational costs, delaying profitability. Despite challenges, Cult.fit’s strong cash reserves, amounting to Rs 349 crore, ensure it remains well-positioned for future growth.

Outlook: Path to Profitability

Cult.fit’s leadership appears confident in achieving profitability in the coming years. Its expense-to-earning ratio improved to Rs 1.69 in FY24, reflecting better operational efficiency. The company’s Return on Capital Employed (ROCE) and EBITDA margins, at -21.5% and -22.8%, indicate there is room for improvement.

A decline in other income, which fell 62% to Rs 100.45 crore, raises concerns. However, Cult.fit’s consistent growth in core services offers stability. The sportswear and fitness equipment segment may face challenges, especially with competitors like Decathlon dominating the market. Despite this, Cult.fit’s hybrid fitness model provides a competitive edge.

Conclusion

Cult.fit’s total income crossing Rs 1,000 crore highlights its resilience and growth in FY24. Under new leadership, the company achieved over 30% revenue growth while maintaining steady losses. Rising costs and stiff competition remain challenges, but Cult.fit’s robust strategy and cash reserves position it well for future success. As it moves towards profitability, the company’s focus on innovation and operational efficiency will play a key role.

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Here are 25 specific FAQs related to Cult.fit, written in a conversational and easy-to-understand tone for individuals in India’s villages:

General Questions

1. What is Cult.fit?

• Cult.fit is a fitness company that offers various fitness services, including gym memberships, group classes, and online workouts.

1. How do I join Cult.fit?

• You can join Cult.fit by downloading the Cult.fit app, selecting a membership plan, and purchasing it through the app or website.

Membership Plans

3. What are the different types of memberships available?

• You can choose from cultpass PRO, cultpass ELITE, and other specific plans like cultpass SELECT and monthly subscriptions.

3. What is the difference between cultpass PRO and cultpass ELITE?

• cultpass PRO gives you unlimited access to PRO gyms and limited access to cult centers, while cultpass ELITE provides unlimited access to all gyms, including ELITE gyms.

3. How much does a cultpass PRO membership cost?

• The cost varies: ₹649/month for 12 months, ₹945/month for 6 months, ₹1423/month for 3 months, and ₹570/month for 24 months.

3. How much does a cultpass ELITE membership cost?

• The cost varies: ₹1083/month for ELITE, ₹1191/month for ELITE PLUS, with various duration options.

Access to Gyms

7. Which gyms can I access with a cultpass PRO membership?

• You get unlimited access to all partner PRO gyms and limited access to cult centers.

7. Can I visit ELITE gyms with a cultpass PRO membership?

• No, for unlimited access to ELITE gyms, you need a cultpass ELITE membership.

7. How many classes can I attend in a different city?

• You can attend up to 5 classes per month in a different city at no extra cost.

Booking and Check-in

10. How do I book my classes for the gym?
    • You can book classes through the Cult.fit app or visit the gym directly to book a time slot.
11. Is it mandatory to check-in using the QR code?
    • Yes, checking in using the QR code on the app is mandatory.

Trials and Tours

12. Can I take a free trial session before buying the membership?
    • Yes, you can take up to 2 free trial sessions to explore the offerings.
13. What can I expect during a free trial session?
    • You can expect a gym tour, a free body composition check (optional), and a workout session.

Membership Pause and Transfer

14. Can I pause my cultpass PRO membership?
    • Yes, each membership pack comes with a fixed number of pause days, which vary depending on the plan.
15. How do I transfer my membership to a different city?
    • You can transfer your membership through the app by going to your profile, selecting the active pack, and choosing the transfer option.

Additional Benefits

16. Do I get any additional benefits with my membership?
    • Yes, you get benefits like membership pause days, free member-to-member transfer, and discounts on cult activewear.
17. Can I get personal training at the gym?
    • Yes, personal training is available at the gym, but it may require an additional fee.

Payments and Fees

18. How do I pay for my membership?
    • You can pay through the Cult.fit app or website using various payment options, including no-cost EMI.
19. Are there any taxes and fees added to my membership cost?
    • Yes, taxes and fees are added to the membership cost, which vary depending on the plan.

Assistance at the Gym

20. Will there be trainers present at the gym to assist me?
    • Yes, trainers will be present to assist you during your workout sessions.
21. What kind of guidance can I expect at cultpass gyms?
    • You can expect guidance from trainers and staff to help you get started and during your workouts.

Membership Cancellation

22. How do I cancel my membership?
    • You can cancel your membership through the app or by contacting customer support, but there may be certain conditions and fees.

Nutrition and Wellness

23. Does Cult.fit offer nutrition consultation?
    • Yes, Cult.fit provides nutrition consultation services to help you with your diet and wellness goals.

COVID-19 Precautions

24. What COVID-19 precautions are taken at Cult.fit gyms?
    • Cult.fit follows strict COVID-19 precautions, including sanitization and social distancing measures, to ensure a safe workout environment.

Feedback and Support

25. How do I give feedback or raise a concern about my gym experience?
    • You can give feedback or raise a concern through the Cult.fit app or by contacting customer support directly.

Thanks