Decathlon India's revenue jumps to over Rs 4,000 crore with a net profit of Rs 197 crore in FY24

French sports retailer Decathlon has reported a profit of Rs 197 crore in FY24, marking a sharp turnaround from a loss of Rs 18.6 crore in the previous fiscal year.

The company's revenue grew to Rs 4,008 crore in FY24, showing a modest increase over Rs 3,920 crore in FY23. Despite the relatively flat revenue growth of around 2.3%, Decathlon's tighter control over costs helped it return to profitability in India.

Managing costs for profitability  

The company's total expenditure dropped to Rs 3,797 crore in FY24, down from Rs 3,975 crore in FY23. This reduction stemmed from strategic cost controls across categories such as utilities, rent, maintenance, advertising, information technology, fuel, freight, franchise fees, and professional services.

Procurement costs remained the largest expense at around 64.4% of the overall spending, but even this saw a dip when compared to the previous year.

Decathlon's improved efficiency meant it spent only Rs 0.95 to earn a rupee, which boosted its EBITDA margin to 14.49% and pushed its return on capital employed to 17.79%.

Strong retail presence and product focus  

Decathlon operates 90 stores across India, offering a wide selection of sports gear and equipment through its own brands. The company follows a direct-to-consumer model, managing everything from product design to in-store and online sales.

Its flagship product categories cover sports such as cycling, hiking, football, swimming, and running. The retailer’s strategy includes creating engaging in-store experiences, which has helped it build a loyal customer base.

In FY24, Decathlon also benefited from a steady stream of non-operating income, including Rs 58 crore from interest on investments, which contributed to an overall revenue of Rs 4,066 crore.

E-commerce and new approaches  

In a market where growth can sometimes plateau quickly, Decathlon has begun exploring fresh ways to reach customers. Besides focusing on its large-format stores and e-commerce site, the company has experimented with third-party platforms to find new shoppers.

While it has built a reputation for high-quality sports and fitness products at affordable prices, the company now faces the challenge of ensuring continued expansion and staying ahead of competitors who have stepped into the same space.