Jewelry retailer owned by Tata’s Titan Company CaratLane has crossed the Rs 3,000 crore revenue mark in the fiscal year ending March 2024.
The company’s revenue grew by an impressive 42% to Rs 3,081 crore, compared to Rs 2,169 crore in the previous year. Including revenue from other financial activities, the total revenue for the year stood at Rs 3,106 crore.
Despite this growth, CaratLane experienced a slight decline in earnings, attributed to its continued expansion efforts.
Expansion impacts profit margins
While CaratLane achieved significant revenue growth, the company’s profits remained flat, declining marginally from Rs 82 crore in FY23 to Rs 79 crore in FY24.
The profit decline has been linked to the company’s aggressive expansion strategy, which included increasing its store network across India. CaratLane now operates more than 262 stores across 105 cities, according to its website.
The cost of expanding and maintaining these stores, along with other operating expenses, contributed to the slight decline in profits.
Key cost centers and financial performance
The largest cost center for CaratLane in FY24 was the procurement of materials and stones, which accounted for 69% of total expenditure.
The cost rose 48% to Rs 2,077 crore during the year. Other significant expenses included employee benefits, advertising, promotion, legal, technical and transportation costs. These overheads took the company’s total expenditure to Rs 2,992 crore in FY24, up from Rs 2,069 crore in the previous year.
Despite rising costs, CaratLane maintained a return on capital employed (ROCE) of 34.88% and an EBITDA margin of 8.98%.
First quarter of fiscal year 25 shows continued growth
CaratLane’s financial performance continued to strengthen in the first quarter of fiscal year 2025. The company reported total revenue of Rs 754 crore, an increase of 18% compared to the same period last year.
Furthermore, its EBITDA grew 8% to Rs 38 crore during this quarter, indicating sustained growth momentum.
In February 2024, Titan Company, a Tata Group company, acquired the remaining 0.36% stake in CaratLane for Rs 60.08 crore, making CaratLane a wholly-owned subsidiary.
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