IKEA India Widens Loss to Rs 1,299 cr in FY24, Revenue Up 4.5 pc

New Delhi, Dec 30 (PTI) Ikea India, a leading furniture and home furnishing retailer, reported widening of losses to Rs 1,299.4 crore in FY24, according to an RoC filing by the company, a step-down unit of Netherlands-based Ingka Holdings.

Its revenue from operations was at Rs 1,809.8 crore, up 4.5 per cent in the financial year that ended on March 31, 2024, according to financial data accessed through business intelligence platform Tofler.

Total income of Ikea India Pvt Ltd was also up 5.12 per cent to Rs 1,852.7 crore in FY24.

Ikea India reported a loss of Rs 1,133 crore and its revenue from operations was at Rs 1,731.6 crore a year earlier.

According to the company, the increase in loss is largely due to investments towards expansion towards omnichannel growth.

"IKEA India maintained solid sales growth despite no price increase and lowering the prices on certain products in FY24. Our losses largely reflect the investment we are making towards our omnichannel growth," said an Ikea spokesperson.

Ikea India's "advertising promotional expenses" were at Rs 196.3 crore, up about 2 per cent in FY24. The advertising expense of Ikea India, a year before in FY23 was at Rs 192.5 crore.

Its total expenses were at Rs 3,152.1 crore in FY24, up 8.86 per cent, as against Rs 2,895.3 crore a year before.

Ikea India operates large-format stores in cities such as Hyderabad, Navi Mumbai, and Bengaluru. It had also opened two small city centres in Mumbai, in which it closed one of them.

Besides, it has also expanded its online presence with its e-commerce operations in Hyderabad, Mumbai, Pune, Bengaluru, and Gujarat.

It has continued to explore other properties/commercial spaces for IKEA's standalone and smaller stores.

"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 on March 31, 2024, Ingka Holding Overseas BV, Netherlands, held 99.9 per cent equity shares of Ikea India.