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CarDekho Group’s revenue slips due to closure of used car biz; InsuranceDekho shines

Entrackr · 13d

CarDekho Group, which operates platforms like CarDekho, InsuranceDekho, BikeDekho, PriceDekho, Rupyy.com, has posted a modest 3.5% drop in its revenue FY24. However, the Jaipur-based firm managed to cut down losses by 40% in the same period. CarDekho revenue from operations fell to Rs 2,250 crore in the fiscal year ending March 2024, from Rs 2,332 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies show. The dip in revenue was due to the closure of the used car business, as explained by founder and CEO Amit Jain in a conversation with Entrackr. Meanwhile, the group’s insurance segment achieved remarkable growth, surging approximately 8X during the past fiscal year. The transaction business is CarDekho's largest revenue contributor, accounting for 41% of its total operating revenue. This includes performance-based advertisements for automakers, dealer-customer connections, and financial services for buyers. The segment grew by 16.5% in FY24, reaching Rs 930 crore. Income from insurance broking (InsuranceDekho - ID) emerged as the second largest revenue grocer for CarDekho which formed 33% of the group’s revenue. Income from ID surged 7.8X to Rs 743 crore in FY24. Advertising, digital marketing, the sale of used cars, and other allied services contributed Rs 384 crore, Rs 176 crore, and Rs 17 crore, respectively. The company also added Rs 143 crore of other income (non-operating), making a total revenue of Rs 2,393 crore in FY24. The PeakXV-backed-company allocated 26% of its total expenses to advertising and promotions, which fell 13.6% to Rs 700 crore in FY24. Employee benefits were another significant expense, holding steady at Rs 642 crore, including Rs 74 crore in ESOP costs (non cash in nature). With the hyper-growth in the insurance segment, the related expenditure spiked 37X to Rs 301 crore in FY24. CarDekho spent Rs 547 crore and Rs 177 crore on outsourcing manpower and purchase of old cars in FY24. Its legal, technology, travel, and other overheads took the overall to Rs 2,669 crore in FY24 from Rs 2,921 crore in FY23. Despite closing its used car retail business, the group's other segments performed well and managed to cut losses by 40% to Rs 340 crore in FY24, down from Rs 566 crore in FY23. Its ROCE and EBITDA margins improved to -9.2% and -9.1% respectively. Cardekho expense expense-to-earning ratio stood at Rs 1.19 in the previous fiscal. The IPO bound firm has total current assets of Rs 3,084 crore including the cash and bank balances of Rs 688 crore in FY24.