Lenskart, the omnichannel eyewear retailer, continues to display robust growth, although at a more measured pace in the fiscal year ending March 2024. The company reported a revenue of Rs 5,427.7 crore, marking a 43% increase from Rs 3,788 crore in the previous fiscal year, according to its financial statements.
Revenue Breakdown
The primary driver of Lenskart’s revenue was its product sales, which surged by 43.1% to Rs 5,166.2 crore in FY24, accounting for 95.18% of total revenue. The sale of services also contributed positively, with an increase of 26.4% to Rs 104.5 crore. Additionally, the company generated Rs 157 crore from other operating sources.
Notably, Lenskart reported earnings of Rs 182.17 crore from non-operating activities, bringing its total collection to Rs 5,609.87 crore for the fiscal year. A significant portion of this revenue, approximately 58%, or Rs 3,154.5 crore, originated from the Indian market, emphasizing the company’s strong domestic presence.
Global Footprint and Store Expansion
Operating more than 2,500 stores globally, Lenskart has around 2,000 locations in India. The company’s international reach is noteworthy, with 42% of its revenue (Rs 2,273 crore) coming from overseas markets. Key markets include Japan, Singapore, Taiwan, and Thailand, reflecting Lenskart’s ambitions beyond the Indian market.
Expense Analysis
While Lenskart achieved significant revenue growth, it also faced rising costs. The cost of materials consumed rose by 29.8% to Rs 1,776 crore, while employee benefits expenses surged by 51.4% to Rs 1,086.49 crore. Depreciation and amortization costs increased by 61% to Rs 672.24 crore.
Overall, Lenskart’s total expenses climbed by 37.9% to Rs 5,549.59 crore in FY24, driven by increased finance costs and IT expenditures. Despite these challenges, the company managed to reduce its losses significantly, cutting them by 84% to Rs 10 crore, compared to Rs 63 crore in FY23.
Financial Metrics and Future Prospects
Lenskart’s return on capital employed (ROCE) stood at 2.28%, with an EBITDA margin of 15.25%. On a unit basis, the company spent Rs 1.02 to generate one rupee of operating revenue, indicating effective cost management strategies.
In June, Lenskart raised $200 million in secondary funding, along with a $20 million investment in which founder Peyush Bansal also participated. The company has secured nearly $1 billion in capital over the last 18 months and was valued at $5 billion during a recent secondary transaction. Following this, early backer Fidelity boosted Lenskart’s valuation to $5.6 billion, further solidifying its status in the eyewear market.
As Lenskart continues to navigate growth in both domestic and international markets, its focus on cost management and expansion will be crucial in maintaining its competitive edge in the rapidly evolving eyewear industry.
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