Saturday, July 13, 2024
Smartphone news

Smartphone maker Vivo India reports net profit of Rs 211 crore in FY23

Chinese smartphone maker’s India subsidiary, Vivo Mobile India has improved its inventory management and has registered profits in the financial year 2022-23 (FY23), The Economic Times (ET) has reported. 

The company reported a net profit of Rs 211 crore for FY23, according to recent filings with the Registrar of Companies (RoC). It posted a 9 per cent rise in its sales compared to FY22.

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Vivo India is the third-largest in India in terms of sales.  

Recently, the company has been in news after government agencies launched a probe into it for alleged non-compliance with local financial laws. The Enforcement Directorate (ED) is currently probing the company for alleged violations of the provisions under the Prevention of Money Laundering Act (PMLA). In a chargesheet filed against the company, the ED alleged that Vivo India remitted Rs 1 trillion outside India between 2014 and 2021 by showing losses, to avoid paying taxes.

With a revenue of Rs 29,784.90 crore in FY23, the company reported its second-highest profit. In FY22, the company made a revenue of Rs 26,971.11 crore.

Better management of inventory behind profit

According to the ET report, Vivo India registered profits owing to better inventory management. It liquidated more inventory than it carried forward at the beginning of the year. Vivo India also made an additional income of Rs 78 crore from other sources.

Vivo India has reported profits at a time when the overall smartphone industry has seen a 10 per cent decline in shipments. The slowdown is primarily because of global macroeconomic factors and the rising cost of components.

Talking about Vivo’s business network, a senior analyst with Counterpoint Research, Shilpi Jain told ET, “Vivo has held a strong position in the offline smartphone market having a healthy network of retail stores across the country…Vivo has increased its local production and operates on a leaner inventory.”


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