India’s largest eyewear retailer Lenskart Solutions posted a seventy-times increase in third-quarter profit on Wednesday, as demand growth for its prescription eyeglasses outpaced a rise in costs.
Consolidated net profit for the quarter ended December 31 surged to 1.31 billion rupees ($14.4 million) from 18.5 million rupees last year, the company said.
Its revenue rose 38.8% to 23.08 billion rupees, outweighing total expenses which rose 28% to 16.9 billion rupees.
In an initiation note, analysts at Antique Stockbroking said that they see significant growth headroom for Lenskart in the largely unorganised eyewear markets of India and Southeast Asia, since they control their own supply chain and distribution.
Revenue from Lenskart’s mainstay India business, which forms three-fifths of its topline, rose about 37%, helped by 28% same-store-sales growth in the country.
Revenue from the company’s international segment, which includes Southeast Asia, Japan and the Middle East, jumped by nearly 40%.
About 80% of the company’s revenue comes from prescription eyeglasses, while sunglasses and contact lenses form the rest, Antique Stockbroking added.
Lenskart’s shares have risen 18% since their trading debut on November 10.
Reuters
