Vivo Mobile India, a leading smartphone company, has reported a net loss of Rs 123 crore for the fiscal year 2022. This information was revealed in the company’s recent filings with the Registrar of Companies (RoC). The net loss comes as a significant contrast to the net profit of Rs 552.5 crore that the company recorded in the previous fiscal year, FY21.
Despite the net loss, Vivo Mobile India experienced a 9% increase in sales, which reached Rs 26,971.11 crore in FY22. This growth in sales indicates that the company has been able to maintain its market presence and attract customers, despite the challenging economic conditions and intense competition in the Indian smartphone market.
Vivo Mobile India’s net loss can be attributed to various factors, including increased expenses, changes in market dynamics, and the impact of the COVID-19 pandemic. The pandemic has disrupted supply chains, affected consumer purchasing power, and led to a decline in overall smartphone sales. These factors have likely contributed to Vivo Mobile India’s financial performance in FY22.
Mohit Yadav, the founder of AltInfo, a business intelligence firm, highlighted that Vivo India’s abrupt shift from significant profits to sudden losses didn’t exhibit prudent financial management. Particularly concerning were the allegations made by the ED regarding the illegal diversion of over Rs 1 lakh crore to China. He believes that to restore trust, Vivo must demonstrate complete transparency in its financial operations and handling of funds to refute the accusations of unlawful diversions.
RTM Watch’s Take
Vivo Mobile India’s net loss is a significant development for the company, as it highlights the challenges faced by smartphone manufacturers in the Indian market. The Indian smartphone market is highly competitive, with several domestic and international players vying for market share. Companies need to continuously innovate, offer competitive pricing, and provide value-added features to stay ahead in this dynamic market.
