Total revenue from operations grew a modest 12% to Rs 112 crore in 2016-17, up from Rs 100 crore in the previous fiscal, as per RoC filings sourced from Tofler. CEO Gaurav Singh Kushwaha said
had slowed down the company’s growth by 10% in the last five months of the financial year.
“We were expecting a growth in sales of 40-50% over 2015-16, but there was a significant drag on business due to demonetisation,” Kushwaha said.
The losses were higher despite advertising and promotional expenses falling to Rs 34.8 crore in 2016-17 from Rs 35.5 crore in 2015-16.
The company’s employee benefit expenses shot up from Rs 28 crore in 2015-16 to Rs 48 crore in 2016-17. Kushwaha said the company has been expanding its team.
The cost of materials consumed, mainly gold, also went up to Rs 99 crore from Rs 84.9 crore. Bluestone consumed Rs 69-crore worth of gold in 2016-17 against Rs 59 crore the year before. It also spent Rs 29 crore on silver compared to Rs 15 crore the year before. Costs on precious stones remained almost same.
Khushwaha, however, said the company was on track to become profitable by 2019 and expected revenues of Rs 1,000 crore in 2019-20.
But the company is expecting higher expenses in the current financial year on greater spend on advertising and plans to open offline stores. “We have allocated Rs 60-70 crore for marketing this year,” Kushwaha said. A major branding exercise has been the appointment of Alia Bhatt as brand ambassador. Bluestone’s main rival, Titan-owned
, is yet to post-financials for 2016-17.