The omnichannel jewellery startup’s EBIT margin also improved by 44 bps YoY to 5.5% in the quarter under review
Additionally, the company opened three new outlets during the quarter under review, taking the total store to 275 spanning 112 cities across India
The jewellery startup saw its profits narrow 8% YoY to INR 82 Cr in the entire FY23 even as operating revenue surged 73% YoY to INR 2,169 Cr
Tata-owned omnichannel jewellery startup Caratlane
reported a total income of INR 754 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25), up nearly 18% from INR 639 Cr in the year-ago period.
The total income, however, excluded “bullion and digi-gold sales” worth INR 139 Cr and INR 4 Cr during the period under review and Q1 FY24, respectively, as per parent Titan.
In what was its first quarter as a wholly-owned subsidiary of Titan Company, CaratLane saw its earnings before interest and tax (EBIT) jump 8.5% year-on-year (YoY) to INR 38 Cr in the quarter ended June 2024. The omnichannel jewellery brand reported an EBIT of INR 35 Cr in Q1 FY24.
Meanwhile, its EBIT margin also improved 44 bps year-on-year (YoY) to 5.5% in the quarter under review.
“Revenue from the studded category grew ~23% YoY. Its contribution improved by ~3pp (percentage points) to ~78% for the quarter,” Titan said.
CaratLane opened three new outlets during the quarter under review, taking its total store count to 275 spanning 112 cities across India. The company also claimed that it launched 412 designs in Q1 FY25 to “drive freshness and activate both repeat and dormant customers”.
Founded in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is an omnichannel brand that manufactures and sells jewellery items in India.
The Tata Group-owned watchmaker acquired an additional 27.18% stake in CaratLane for INR 4,621 Cr at nearly INR 17,000 Cr valuation last year to increase its shareholding to over 99%. Afterwards, Titan bought the remaining 0.36% stake in the startup for INR 60.08 Cr, turning CaratLane into its wholly-owned subsidiary.
CaratLane competes against the likes of legacy players such as Kalyan Jewellers, Malabar Gold, as well as new-age brands such as BlueStone and GIVA.
The Chennai-based jewellery startup reported a profit of INR 82 Cr in FY23, down 8% from INR 89.2 Cr in the previous fiscal year. Meanwhile, the brand’s operating revenue surged 73% YoY to INR 2,169 Cr in the fiscal year ended March 2023.
