Titan Company-owned CaratLane made over Rs 3,000 crore in revenue in FY24

Tata's Titan Company-owned jewellery retailer 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%, reaching Rs 3,081 crore, compared to Rs 2,169 crore in the previous fiscal year. Including income from other financial activities, the total revenue for the year stood at Rs 3,106 crore.

Despite this growth, CaratLane witnessed a slight profit decline, attributed to its ongoing expansion efforts.

Expansion impacts profit margins

While CaratLane achieved significant revenue growth, the company’s profit remained flat, with a marginal decrease from Rs 82 crore in FY23 to Rs 79 crore in FY24.

The dip in profit has been linked to the company’s aggressive expansion strategy, which included increasing its network of stores across India. CaratLane now operates over 262 stores in 105 cities, according to its website.

The cost of expanding and maintaining these stores, along with other operational expenses, has contributed to the slight reduction in profit.

Major cost centres and financial performance

The largest cost centre for CaratLane in FY24 was the procurement of materials and stones, which accounted for 69% of the total expenditure.

The cost grew by 48% to Rs 2,077 crore during the year. Other significant expenses included employee benefits, advertising, promotion, legal, technical, and transportation costs. These overheads pushed the company’s total expenditure to Rs 2,992 crore in FY24, up from Rs 2,069 crore in the previous year.

Despite the increased costs, CaratLane maintained a Return on Capital Employed (ROCE) of 34.88% and an EBITDA margin of 8.98%.

First quarter of FY25 shows continued growth

CaratLane's financial performance continued to strengthen in the first quarter of FY25. The company reported a total income of Rs 754 crore, an 18% increase compared to the same period the previous year.

Additionally, its EBITDA grew by 8% to Rs 38 crore during this quarter, indicating sustained growth momentum.

In February 2024, Titan Company, a Tata Group firm, acquired the remaining 0.36% stake in CaratLane for Rs 60.08 crore, making CaratLane a wholly-owned subsidiary.