Cars24 reports revenue of Rs 5,535 cr in FY23, 8% increase from FY22

The company reported profit before tax (loss) of Rs 467.8 crore in FY23 compared to Rs 1093.1 crore in FY22

Cars24, a leading e-commerce platform for pre-owned vehicles, reported a revenue of Rs 5,535 crore in FY23, marking an 8 per cent increase from FY22, when the reported revenue stood at Rs 5,136.5 crore. The company said it is already exhibiting a strong performance in the first half of FY24. The firm reported a gross margin of Rs 609.1 crore (11 per cent) in FY23, compared to Rs 157.6 crore (3 per cent) in FY22. This has improved at a 3.6x rate.

The company reported a profit before tax (loss) of Rs 467.8 crore in FY23, compared to Rs 1,093.1 crore in FY22. It posted an Ebitda loss of Rs 337.6 crore (6 per cent) in FY23, compared to Rs 997.7 crore (19 per cent) in FY22. This is a reduction of 68 per cent.

"Our losses have shrunk significantly by 68 per cent (Ebitda), 6 per cent loss in FY23 against 19 per cent loss in FY22. We are expecting to turn profitable in the coming years," said Gajendra Jangid, co-founder of Cars24.

The firm posted total expenses of Rs 946.7 crore for FY23, compared to Rs 1,155.3 crore in FY22. These comprise employee benefits, advertisement promotion, rent, IT costs, contractual expenses and others.

"We have substantially reduced our advertising expenses even as we maintain consistent growth. Our brand has solidified its presence over the years, and our customers enthusiastically endorse and recommend us to their friends and family," said Jangid. "In the used car category, we've attained the highest level of brand awareness, powered by strong word-of-mouth that has enabled us to cut down on our marketing expenditure."

By solving for process efficiency and automation, and implementing these changes across the organisation, the firm said it achieved substantial cost reductions. These cost savings, in turn, have allowed the firm to reallocate resources to areas such as technology development. This has helped the firm to be well-positioned for the long-term and continue providing value to the customers.

The company also gave a snapshot of its subsidiary Cars24 Financial Services Private Limited (CFSPL). It provides essential financial services to both consumers and dealers. This platform reported a revenue of Rs 163.4 crore in FY23, compared to Rs 86.6 crore in FY22. The profit before tax was Rs 1.5 crore, or 1 per cent in FY23, compared to a loss of Rs 19.5 crore (-22 per cent) in FY22.

Earlier this year, CFSPL also achieved a 100 per cent year-on-year growth in enabling loan disbursements. It surpassed a milestone of enabling disbursals worth Rs 2,000 crore since its inception. This jump is driven by the ease and accessibility of car financing becoming key drivers in attracting more young individuals who are seeking financial flexibility and a hassle-free car ownership experience.

"We are committed to seizing the dominant position in India's used car market and will persistently invest in cutting-edge technology and innovative solutions to deliver an unparalleled user experience," said Jangid.