Ikea India Reports Rs 1,299.4 Crore Loss In Fiscal 2024, Revenue Up 4.5%

Ikea India reported a larger loss of Rs 1,299.4 crore for fiscal 2024, as per a filing with the Registrar of Companies.

The company, a subsidiary of Netherlands-based Ingka Holdings, saw its revenue from operations rise by 4.5% to Rs 1,809.8 crore for the financial year ending March 31, 2024, according to data from the business intelligence platform Tofler.

Ikea India's total income also grew by 5.12%, reaching Rs 1,852.7 crore in fiscal 2024, compared to Rs 1,113 crore in the previous year. The increase in losses is mainly attributed to investments made for expanding its omnichannel operations, according to the company.

"Ikea India maintained solid sales growth despite no price increase and lowering the prices on certain products in fiscal 2024. Our losses largely reflect the investment we are making towards our omnichannel growth," said an Ikea spokesperson.

Ikea India's advertising and promotional expenses amounted to Rs 196.3 crore in fiscal 2024, marking a 2% increase compared to Rs 192.5 crore in fiscal 2023.

The company’s total expenses for the fiscal year stood at Rs 3,152.1 crore, an increase of 8.86% from Rs 2,895.3 crore in the previous year.

Ikea India operates large-format stores in cities like Hyderabad, Navi Mumbai, and Bengaluru and had opened two smaller city centres in Mumbai, although one has since been closed. The company has also expanded its e-commerce presence, now serving cities including Hyderabad, Mumbai, Pune, Bengaluru, and Gujarat.

Additionally, Ikea India continues to explore new properties and commercial spaces for both standalone stores and smaller formats.

"The company has continued to perform reasonably well, and the management is optimistic about its prospects, too. There is no change in the business of the company during the period under review," said Ikea while submitting its performance review.

It is committed to its plan of opening more stores and serving 200 million people by 2025, Ikea spokesperson said.

As of March 31, 2024, Ingka Holding Overseas BV, Netherlands, held 99.9% equity shares of Ikea India.

(With PTI Inputs)