In an impressive turnaround, Decathlon Sports India has achieved profitability for the fiscal year 2023-24, posting a remarkable net profit of ₹197.19 crore. This significant change comes after the company faced a net loss of ₹18.61 crore in the previous fiscal year, a transformation detailed in filings with the Registrar of Companies (RoC) and accessed via data intelligence platforms.
Financial Growth and Performance
Decathlon India has shown resilience with a 2.8% increase in total income, reaching ₹4,066.4 crore compared to ₹3,954.98 crore in FY23. This growth is particularly noteworthy given the economic challenges many retailers faced last year.
- Total Income FY24: ₹4,066.4 crore
- Total Income FY23: ₹3,954.98 crore
- Net Profit FY24: ₹197.19 crore
- Net Loss FY23: ₹18.61 crore
On the expenditure side, the company successfully reduced costs by over 4%, bringing total spending down to ₹3,797.13 crore from ₹3,974.81 crore the previous year. This combination of increased revenue and decreased expenses has significantly bolstered Decathlon’s financial standing.
Strategic Expansion Plans
Decathlon is not resting on its laurels. The retailer has ambitious plans to invest ₹900 crore over the next five years to enhance its footprint across India.
- Target New Stores: 10-15 annually
- Current Outlets: 127
- Future Goal: Approximately 190 stores across 90 cities
The company aims to solidify its position in the market by continuing to expand its retail network, demonstrating a strong commitment to the Indian market.
Emphasizing Digital Presence
While online sales have seen a decline in FY24, Decathlon remains optimistic about enhancing its digital footprint. The retailer has partnered with quick-commerce platforms to ensure that customers can receive their orders within 10-15 minutes in major metropolitan areas.
Manufacturing Goals
By the year 2026, Decathlon plans to boost local manufacturing, aiming to produce 85% of its goods sold in India, a significant increase from the current 68%. This strategy not only supports local employment but also aligns with the government’s push for self-reliance in manufacturing.
Commitment to the Indian Market
Decathlon has consistently emphasized the importance of the Indian market, proclaiming it a "big priority" and projecting it to become one of its top five global markets within the next five years. Since entering India in 1999 and launching retail operations in 2009, the company has already invested approximately ₹900 crore in the region.
In summary, Decathlon Sports India is on a promising trajectory toward sustained growth and profitability, fueled by strategic investments and a focus on both physical and digital retail expansions.
