The revenue from operations in the fiscal year ending March 2024 has seen an increase of 43 percent, with the overall revenues being a tad slower at 2.5X year-over-year growth last fiscal. The latest financial statements for FY24 and FY23 show that overall revenues had increased to ₹5,427.7 crore compared to ₹3,788 crore in the previous fiscal year.
PC: Indian Retailer
The primary source of revenue lies in the sale of eyewear products, such as frames, lenses, goggles, and ancillary services, including eye checkups. Product sales income surged 43.1% to ₹5,166.2 crore, which formed 95.18% of the company’s overall collections. Income from services grew 26.4% to ₹104.5 crore, while other operating sources added ₹157 crore to the FY24 books.
The Delhi headquartered company also reported revenue of ₹182.17 crore from non-operating activities, bringing the overall collections to around ₹5,609.87 crore in the fiscal year. Notably, Lenskart, which is an Indian-based company, has derived its revenue of ₹3,154.5 crore or 58% of revenue from the Indian market while 42% of income, which is ₹2,273 crore came from international markets, which comprises Japan, Singapore, Taiwan, and Thailand.
Even as the revenue was highly growing, the company saw increases in costs in all of its segments. Materials consumed went up 29.8% to ₹1,776 crore from ₹1,368 crore in FY23. Employee benefits expenses also rose 51.4% to ₹1,086.49 crore. Depreciation and amortization also increased by 61% to ₹672.24 crore in FY24.
Total expenses of the company increased 37.9% year on year to ₹5,549.59 crore, primarily due to the increase in the cost of materials, employee benefits, and other operational expenses like finance and technology costs. Still, Lenskart managed to efficiently deal with its overall financial performance as the losses declined by 84% to ₹10 crore for FY24, from ₹63 crore in FY23. The ROCE of the company was at 2.28%, while the EBITDA margin was at 15.25%. Unit-wise, Lenskart had spent ₹1.02 to earn every rupee of operating revenue.
In June 2023, Lenskart had raised secondary funding worth $200 million and then invested another $20 million more, where founder Peyush Bansal also joined. In the last 18 months, the company has managed to raise nearly a billion dollars, which depicts the strength of the investors. In the recent round of funding, Lenskart had been valued at $5 billion, where early investor Fidelity increased its valuation at $5.6 billion recently.
More than 2,500 stores are spread across the globe with around 2,000 in India alone. Thus, Lenskart is increasingly becoming a name to reckon with in the eyewear market. It has effectively targeted international expansion without compromising its cost management; hence, this company is positioned well to scale up in a competitive future.
In conclusion, the phenomenal revenue growth in FY24 and strategic funding efforts along with cost management will keep it afloat against the dynamic nature of eyewear markets, and therefore, it is sure to make it an even bigger player in the domestic and international markets.
