Lenskart slips into the red in FY22 even as revenue jumps 66%

The eyewear brand, operated by Lenskart Solutions Pvt. Ltd, reported a nearly 66% year-on-year jump in its revenue from operations to ₹1502.7 crore, according to a filing with the Ministry of Corporate Affairs.

Total expenses rose 72.8% to about ₹1,726 crore in FY22 as the company incurred abut 71.9% higher cost on advertising and promotion at about ₹234.6 crore. Its employee benefit expenses also surged about 53% in the year-ended March 2022, at ₹245 crore.

Lenskart paid about ₹305 crore as commission to selling agents in the year ended March 2022, a nearly 64% jump from FY21. The eyewear retailer’s telephone postage expenses rose to about ₹42.3 crore, against ₹27.7 crore in the financial year ended March 2021.

Stock in trade expenses were ₹131.4 crore in the last financial year against ₹68.5 incurred in FY21, while the cost of material consumed rose 74% on-year at about ₹485 crore, the filings showed.

Its revenue from the sale of its products, its key revenue contributor, was about 65.6% higher on-year in the last financial year, at ₹1418 crore. Revenue from services, primarily, subscription fees, was about 13.4% higher at ₹48.8 crore.

The leading brand, in June, picked up a controlling stake in Japanese direct-to-consumer (D2C) eyewear brand Owndays, in a bid to place itself as one of the largest omni-channel players in the category in Asia.

The omnichannel player, in August, also announced its plans to shift its entire manufacturing in Southeast Asia, including recently-acquired Japanese eyewear chain Owndays, to its largest manufacturing facility in Bhiwadi, Rajasthan.

Lenskart also announced the expansion of its online presence by offering its products on Nykaa, Myntra, Tata Cliq and other platforms, recently.