Lenskart goes from profit in FY21 to loss in FY22 despite revenue increase

By

Isabelle Crossley

Published
Nov 11, 2022

Lenskart had reported a profit in the 2021 financial year but dropped into a loss of Rs 102 crore in the 2022 fiscal. The multi-brand, omni-channel eyewear retailer did experience a double digit revenue increase last fiscal but large scale international expansion required significant investments. 

The business’ consolidated operating revenue totalled Rs 1,502 crore in the 2022 financial year, ET Tech reported, citing regulatory documents from business intelligence platform Tofler. This represents a 66% increase in operating revenue compared to the 2021 financial year and signals a recovery from the effects of the Covid-19 pandemic. 
 
Lenskart focused on international expansion in the 2022 financial year, especially in Southeast Asia. The large investments this required is the main reason for the business’ slip from profits into loss, sources close to the matter told ET Bureau. The business also continues to expand in India and has reached a total of over 1,100 stores across the country. 

As well as investing in opening new stores, the business’ expenses on procuring materials also rose by 74% and its staff expenses rose by 53% due to expanding its workforce. In the 2023 financial year, Lenskart plans to open 400 new stores, mainly in the international market, with the aim of scaling its revenue.