According to financial information accessed by business intelligence platform Tofler, Ikea’s Indian division lost a net amount of Rs 902 crore in FY22, increasing from Rs 809.8 crore the year before, according to PTI.
The sales revenue revenue for Ikea India Pvt Ltd’s FY22 increased by 77.07% to Rs 1,076.1 crore. During the fiscal year that ended in March 2021, it was Rs 607,7 crore. Its ‘other income’ revenue more than doubled to Rs 48.2 crore in FY22.
In FY22, the company’s overall revenue increased by 73.1% to Rs 1,125.5 crore from Rs 650.2 crore in the same time the previous year. Additionally, operating expenses as a whole increased by 45.62 percent to Rs 1,590.8 crore. Interest, depreciation, and amortisation were not included.
The global Covid-19 pandemic had an influence on the company’s expansion plan and operations in FY22, according to Ikea India’s financial report.
“However, the company not only managed its operations in an effective way but also extended its support to society through its various partners for helping the needy people and for minimising the spread of the pandemic. The company also ensured the safety of its co-workers while managing its operations,” it said.
It further added: “The company has continued to perform reasonably well, and the management is optimistic about its future prospects too.” The company continued to focus on its strategies for positioning, expansion, and profitability of Ikea’s omnichannel business in India throughout FY22.
Three large-format Ikea locations can be found in Hyderabad, Navi Mumbai, and Bengaluru. Additionally, it sells online in Bengaluru, Hyderabad, Gujarat, Pune, Mumbai, and Pune. In FY22, it was also “focussing on the cities of Hyderabad, Mumbai, Pune, Bangalore and Delhi NCR”.
According to a corporate representative, India is a significant market for Ikea.
“We continue to invest in omni-channel expansion in our priority markets even if we are still in the early stages of our operations in India. Over the past year, our sales in India have almost doubled, and we’ll keep working to spread the word about our easily available, reasonably priced, environmentally friendly products and solutions that are useful for everyday living there”added the spokesperson.
Ikea opened their first location in India in Hyderabad in 2018.
