Ikea India’s loss further falls to Rs. 720 crore

Furniture retailer Ikea India saw  its net loss further falling to Rs 720.1 crore in the financial year that ended March 2020.The company had registered a loss of Rs 685.4 crore in the last financial year too, according to a Registrar of Companies filing shared by market intelligence firm Tofler.

However, Ikea India saw its net sales grow 64.68 per cent to Rs 566 crore in 2019-20 from Rs 343.7 crore in the previous fiscal. Its total revenue during 2019-20 was at Rs 665.6 crore up 63.18 per cent against Rs 407.9 crore in the previous financial year.

Ikea India, which has opened its second retail store in Mumbai this month saw its revenue from other income in FY20 grow at Rs 99.6 crore against Rs 64.2 crore in 2018-19. The company said that India was an important market for the company and it is investing to offer customers an omni-channel experience.

“India is an important market for Ikea. We are here in India for the long term. We are in the initial years of operations in the country where we are investing in our priority markets to offer customers an omnichannel experience,” said Ikea India CFO, Preet Dhupar.

Part of Ingka Group, Ikea India opened its first retail store in Hyderabad in August 2018 followed by online stores in Mumbai, Hyderabad and Pune. Besides its new flagship store in Navi Mumbai, the company has plans to set up two stores in Mumbai.