Chaayos, the popular Indian tea chain, has posted an encouraging financial performance for the fiscal year 2024, showcasing a significant reduction in losses and a positive turnaround in its earnings before interest, taxes, depreciation, and amortization (EBITDA).
The company’s operating revenue saw a modest increase of 4.89%, rising to INR 248.6 crore for FY24, compared to INR 237 crore in the previous fiscal year (FY23). While the growth in revenue was relatively slow, Chaayos demonstrated significant improvement in cost management, leading to better overall financial health.
In terms of expenditures, Chaayos was able to reduce its total expenditure by 3.69%, bringing it down to INR 352.2 crore for FY24, from INR 365.7 crore in FY23. This reduction in costs was a key factor in the company’s improved financial outcomes, contributing to a notable decrease in losses.
The most remarkable development for Chaayos in FY24 was its transition to a positive EBITDA of INR 28.3 crore, a sharp turnaround from an EBITDA loss of INR 22.1 crore in FY23. This indicates the company’s ability to manage its operations more efficiently, despite facing challenges in a competitive market.
This financial performance highlights Chaayos’ efforts to optimize operations, reduce expenses, and focus on its core business, even as it navigates the evolving landscape of the food and beverage industry in India. The company’s positive EBITDA suggests a promising outlook as it works toward scaling its operations and enhancing profitability in the coming years.
