India is set to become the 3rd largest economy and double the per capita income by 2026 with a high level of digital adoption, ahead of most western markets. The company is expected to deliver robust revenue growth. They serve more than 5,000 customers daily across 24,000 pin codes and they also have 5,80,000 Blink members which is a paid membership on EyeMyEye. The value segment is untapped and all existing eyewear players in the market are focused on the premium segment. EyeMyEye is positioned as a branded/organized platform in the value/mid-tier segment.
The company generated a revenue of Rs 21.44 Cr in the first 6 months of its operations, i.e., between Oct'21-March'22 and in the first 6 months of FY23 it was able to generate a revenue of 28Cr. This was possible as the company was able to sell 1.2 million prescription eyeglasses and 0.4 million Sunglasses during this 12-month period. The company also managed to sell 5,80,000 Loyalty memberships(Blink) which further contributed to its revenue.
Subsequently, its revenue is estimated to increase at a growth rate of 70.58%. from FY22 to FY27, on account of new retails stores and more distribution channels.
.The company has invested a lot in the past in the development of technology and in talent. The expenditure on technology and talent has been going on continuously because of which the company has incurred the loss. Going ahead it is expected to leverage the technology and scale it up, which is expected to bring operational efficiency to the company.
Since it is an asset-light business so the business will not be affected much by depreciation and amortization. Currently, the EBITDA and EBIT of the company are negative but with the advancement, in technologies, the company will use that technology to scale its business and can earn higher profit margins.
Growth in %
Total assets of the company have decreased -5.25% in the first 6 months of FY23 compared to the last 6 months of FY22 .The company's technology and goods, such as sunglasses, eyeglasses, and computer lenses, are its key assets, and these assets are most likely to grow over time.
Growth in %
In the first half of FY23, the company's cash flow from operations increased by 44%.The business model of this company demands sufficient inventory in stock to meet the demands of the consumers immediately so the they have a major cash outflow in maintaining their inventories.
The company will most likely pay off all of its debt by 2024 and then finance its operations with equity, resulting in a debt-to-equity ratio of zero after 2024.
This company's business model necessitates the retention of current assets in order to meet demand.
At present the company is in nascent stage of growth and is financing its business by debt later as the business grows the current assets of the company will be able to meet up its current liabilities.
The company will most likely pay off all of its debt by 2024, after which they will not have to pay any interest on loans, resulting in a zero interest coverage ratio.
At present the company is building up so the expenditure is more on its technology and assets once the company is done in making the technology then their expenditure will be lower and it will be able to earn high margins and also when the company will pay off all its debt in 2024 then they will not have to pay any interest which will increase the company's profit margins.