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CaratLane crosses Rs 3,000 Cr revenue in FY24; remains profitable

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Titan-owned CaratLane has continued its growth trajectory as its revenue grew 42% in the fiscal year ending March 2024. The company’s profit dipped marginally due to aggressive expansion, though. CaratLane’s revenue from operations grew to Rs 3,081 crore in FY24 from Rs 2,169 crore in FY23, its consolidated annual statements sourced from the Registrar of Companies (RoC) show. CaratLane sells gold, silver, and diamond jewelry for both men and women through its website and network of offline stores. As per its website, the firm operates over 262 stores across 105 cities. The sale of the jewelry was the sole source of revenue for CaratLane in FY24. The company also earned Rs 25 crore from other financial activities, taking the overall revenue to Rs 3,106 crore in the said fiscal. For the jewelry maker, the cost of procurement of material/stones was naturally the largest cost center forming 69% of the total expenditure. To the tune of scale, this cost grew 48% to Rs 2077 crore in FY24. Employee benefits, advertisement cum promotion, legal, technical, and transportation are some major overheads that pushed the total cost to Rs 2,992 crore in FY24 from Rs 2,069 crore in FY23. See TheKredible for the detailed cost breakup. Despite an impressive scale, the company reported a flat profit which stood at Rs 79 crore in FY24 as compared to Rs 82 crore in FY23. The expansion of stores appears to be the reason for the marginal dip in PAT. Its ROCE and EBITDA margin stood at 34.88% and 8.98%, respectively. On a unit level, it spent Rs 0.97 to earn a rupee in FY24. FY23-FY24 FY23 FY24 EBITDA Margin 9.64% 8.98% Expense/₹ of Op Revenue ₹0.95 ₹0.97 ROCE 38.19% 34.88% CaratLane also disclosed its financials for the first quarter of FY25. The company’s total income surged 18% year-on-year to Rs 754 crore in Q1 FY25 while its EBITDA saw an 8% increase to Rs 38 crore during the same period. In February, Tata Group firm Titan Company acquired the remaining 0.36% stake of CaratLane for Rs 60.08 crore. Following the deal, CaratLane transitioned into a wholly-owned subsidiary of Titan Company. CaratLane directly competes with Bluestone which recorded Rs 788 crore in operating revenue for FY23 and reportedly raised Rs 900 crore ($107 million) in pre IPO round. Among the venture funded startups, Melorra and Giva are other notable competitors.