D’Decor Posts 20% Profit Growth Amid Modest Revenue Rise in FY24

India’s home décor market is booming, with double-digit growth fueled by rising disposable incomes and evolving lifestyles. Yet, amid this sector-wide surge, soft furnishings major D’Decor reported only modest top-line growth in FY24. Still, the company managed to deliver a strong bottom-line performance, with profits rising by over 20% during the year.

D’Decor FY24 Performance Overview

According to its consolidated financials filed with the Registrar of Companies (RoC), D’Decor’s revenue from operations grew by 4.2% year-on-year—from ₹783 crore in FY23 to ₹816 crore in FY24. The company added another ₹ 37 crore through non-operating income, taking its total revenue to ₹ 853 crore for FY24

On the expense side, procurement costs made up 39.2% of the total expenditure, amounting to ₹ 308 crore. Advertising spending saw a notable spike—up 173% year-on-year to ₹ 41 crore. Costs related to employee benefits, utilities, rent, freight, and other overheads pushed total expenses up by 4%, from ₹ 755 crore in FY23 to ₹ 785 crore in FY24.

Despite the subdued revenue growth, D’Decor’s profit rose to ₹ 53 crore in FY24 from ₹ 44 crore in the previous year—marking a 20.5% increase. Operationally, the company spent ₹ 0.96 to earn each rupee of revenue. Its financial metrics also showed improvement, with Return on Capital Employed (ROCE) rising to 14.09% and EBITDA margin reaching 17.80%.

As of March 2024, the company held total current assets of ₹ 547 crore, which included trade receivables worth ₹ 224 crore.

In an increasingly competitive market, D’Decor is up against both legacy brands and newer entrants like The Yellow Dwelling, Vaaree (backed by Peak XV), Furlenco, and Pepperfry. While the Indian home décor sector holds tremendous potential in terms of size and margins, it remains a fiercely contested space.

About D’Decor

D’Decor is a well-known name in the soft furnishings space, offering a range of products like curtains, upholstery, and bed and bath linens. The company exports to over 65 countries and maintains a strong domestic presence through its retail stores and online platforms. Notably, its entire revenue during FY24 came from the sale of fabrics and made-ups, though the firm did not disclose a split between domestic and international markets.

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