CaratLane Records 109 Percent Growth in EBIT in Q2, Despite Dip in Overall Customer Sentiment for the Category

7 Nov 2022 , 04:03 PM

Business Wire India

Key Highlights:

 

• Q2 FY23 Revenue at INR 445 Cr – a growth of 54% YoY, with an EBIT of INR 29 Cr
• 2 year Revenue CAGR came in 76% exhibiting a healthy growth despite macro challenges
• Total retail footprint stands at 157 stores across 61 cities pan-India, with 14 new stores (net) added in Q2 FY23
• Like-to-like retail sales growth of 41%

CaratLane continued its strong growth in Q2, normally a slow quarter for the year. Post an upbeat Raksha Bandhan, a moderate drop in consumer sentiment was visible in August and in September reflecting in a lower customer conversion than anticipated. The online searches for jewellery on Google too dropped during this period, reflecting this trend. However, the ensuing recovery going into the festive season was very encouraging from the start of Navratri that came at the end of the quarter.

CaratLane delivered a revenue (NSV) of Rs. 445 Cr for the quarter (54% growth over Q2FY22). The India business delivered a total revenue of Rs. 421 Cr (NSV) achieving a 57% growth over Q2FY22. and achieved an EBIT of Rs. 34 Cr (8.1%). With continuous investments in the International business, the consolidated EBIT stood at Rs. 29 Cr (6.5%). During the festive season CaratLane delivered revenue of 253 Cr in India, a 50% growth over last year.

“We have always followed an omnichannel, digital first approach – driving discovery of the brand and designs online and guiding the customers to the most convenient channel for trial and purchase. We use a very targeted approach – by identifying customers in the catchment of the stores, basis their pin code and showcasing the best designs available to them. Studying consumer buying journeys has helped us add features like 24-hour Delivery, Buy Online Pick Up in Store (BOPIS), Find in Store or Book a Try at Home appointment to enable customers to complete their transactions. We also use several interventions and messaging during the digital journey of the customers to help them find the right designs and guide them to the right channel. This ensures that 80% of the footfalls in our stores are digitally influenced high intent customers, leading to a high conversion rate.“ Avnish Anand, COO & Co Founder of CaratLane said.

US business continues to form majority of this international business and has delivered a booked revenue of 1.92 Mn USD for the quarter. The US business started fulfilment for Canada from the New York warehouse thereby reducing lead times for delivery and better customer experience for the Canadian market. The Silver business Shaya closed Q2 at INR 9.4 Cr achieving 107% growth over previous year. The total retail footprint for the brand is 16 stores across all formats.

Commenting on the results, Mithun Sacheti, Managing Director CaratLane said, “Our results in Q2FY23 were satisfactory despite a slow consumer sentiment quarter. We continue to focus on driving a true omni channel experience for customers by making sure the right design is available at the right locations. Our retail footprint is now at 157 stores, and we are going deeper into the heart of India with new launches in cities like Guntur, Ambala, Burdwan, Rajkot, Mangalore etc. We are also looking to expand to more tier 2 cities where customers have shown a demand for the brand. This will continue to enable more and more women across the country to have access to beautiful everyday wear jewellery. We are also building our International business aggressively to capture the demand of customers of Indian origin across the globe. We are looking to become the brand of choice for all the gifting, as well as self purchase requirements of the customers, in the everyday wear jewellery category for the festive season across the world.”