Swedish furnishing company IKEA’s Indian unit recorded a net loss of ₹902.8 crore in FY22. The net loss widened this year as compared to ₹809.8 crore in the preceding year. “Management is optimistic about its future prospects too. There is no change in the nature of business of the company during the period under review,” it has said.
According to financial data accessed by the business intelligence platform Tofler, and reviewed by businessline, the company that operates large and small format stores in India reported a 73 per cent jump in total revenues in FY22 to ₹1,126 crore compared to a year ago period as it opened more stores in the country. Its revenue from ‘other income’ was up over two folds to ₹48.2 crore in FY22.
Its net revenue from operations was by 77.07 per cent to ₹1,076.1 crore in FY22 compared at ₹607.7 crore during the financial year that ended in March 2021. Total expenses of the company, grew 39 per cent to ₹2,027 crore FY22, up from ₹1,457 crore in the year ago period.
Humanitarian relief
“During the FY 2021-22, the company’s expansion plan and operations were impacted due to the global pandemic of Covid-19. However, the Company, not only managed its operations in an effective way but also extended its support to the society through its various partners to help the needy and minimise the spread of pandemic. The Company also ensured the safety of its co-workers while managing its operations,” the company known for its DIY range.
“The Company has continued to perform reasonably well, and the management is optimistic about its future prospects, too. There is no change in the nature of business of the company during the period under review,” it further added.
IKEA operates three big-format furniture and home stores in Hyderabad, Navi Mumbai and Bengaluru, and offers online services in Mumbai, Pune, Hyderabad, Gujarat, and Bengaluru. It also opened two small-format city centres in Mumbai opened in December 2021, and July 2022, respectively.