HomeLane, a manufacturer of home furnishings, reported a profit for fiscal year 22 on its website, but its financial statements showed otherwise. In the fiscal year ending in March 2022, the Sequoia-backed company’s losses increased by more than 50%.
In the meantime, we’ll get to the money and loss details at the conclusion. Let’s analyse its growth and revenue distribution first.
HomeLane offers interior design services and claims to employ more than 1,400 design professionals who work with more than 20,000 clients. The six-year-old company relied only on collection for these services, and revenue from them increased by 54.3% to Rs 426 crore in FY22.
Interest on fixed deposits brought in Rs 5.12 crore for the company, up 2.17 times over the previous fiscal year (FY22).
With 56.8% of total costs, the most notable spending category was the buying of house interior goods and contracts. As a result, the price tag for this item increased by Rs 332 crore, or 56.6%, in FY22.
The hiring of cricket superstar Mahendra Singh Dhoni drove up Homealane’s marketing expenditures by more than threefold, to Rs 70 crore, in the previous fiscal year. In FY22, the firm allocated an additional Rs 7 crore towards IT, bringing the overall expenditure on IT to Rs 584 crore (a 53.7% increase from FY21’s Rs 380 crore).
Both the company’s scale and its expenses expanded at a comparable rate in FY22. As a result, Homelane’s losses increased by 50% to Rs 153 crore in the most recent financial year. Its return on invested capital and earnings before interest and taxes (EBITDA) margin were -85.72% and -31.79%, respectively. In FY22, it cost the corporation Rs 1.37 to bring in a single rupee of operating income.
HomeLane’s main rivals are Livspace, which lost Rs 645 crore last fiscal year on revenue of Rs 570 crore, and pepperfry, whose losses grew to Rs 194 crore.
The cost of providing benefits to employees jumped to Rs 119 crore in FY22, a 10.2% increase over the Rs 108 crore spent in FY21.