New Delhi [India], October 31 : CARS24, the Indian Autotech player, has announced financial results for FY23, reporting a revenue of Rs 5,535 crore. This marks an 8 per cent increase from the previous fiscal year when the company's revenue stood at Rs 5,136.5 crore.
Notably, the company's gross margins have seen an improvement, surging by a factor of 3.6 to reach 11 per cent in FY23 compared to 3 per cent in FY22.
Gajendra Jangid, Co-Founder of CARS24, attributed this growth in gross margins to investments in technology and data science models.
According to Jangid, these investments have led to substantial reductions in operational costs and higher standards for car procurement. As a result, CARS24 witnessed its gross margins surge by an impressive 3.6 times, reaching 11 per cent in FY23.
Jangid said, "Our investments in technology and data science models have delivered tangible results. We have been able to reduce our operational costs substantially and set higher standards for car procurement. As a result, our gross margins have surged by an impressive 3.6x, reaching 11 per cent in FY23".
The company's losses have seen a reduction of 68 per cent, with CARS24 reporting a -6 per cent loss in FY23 compared to a -19 per cent loss in FY22.
It reported a profit before tax (loss) of Rs 467.8 crore in FY23, in stark contrast to INR 1,093.1 crore in FY22. CARS24 now has its sights set on achieving profitability in the coming years.
Furthermore, the company effectively reduced its total expenses to Rs 946.7 crore in FY23, down from Rs 1,155.3 crore in FY22.
These expenses encompass various categories, including employee benefits, advertising promotion, rent, IT costs, and contractual expenses, among others.
Jangid elaborated on this cost reduction strategy, stating that the company identified manual processes within its operations that were time-consuming and resource-intensive.
CARS24 has since focused on streamlining these processes through automation and invested in technology to support its team better.
This not only led to cost reductions and minimized the potential for errors but also enhanced team productivity.
In addition to its core operations, the company's financials also included the figures of its subsidiary, CARS24 Financial Services Private Limited (CFSPL), which offers essential financial services to consumers and dealers.
CFSPL reported a revenue of Rs 163.4 crore in FY23, up from Rs 86.6 crore in FY22.
CFSPL achieved net profitability within just four years of its inception, with reported profit before tax of Rs 1.5 crore, or 1 per cent, in FY23, as opposed to a loss of INR 19.5 crore in FY22.
CFSPL's performance this year also saw a 100 per cent year-on-year growth in enabling loan disbursements.
This growth was driven by the accessibility and ease of car financing, making it an attractive option for young individuals seeking financial flexibility and a hassle-free car ownership experience.
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