Monday , November 30 2020

Snapdeal reduces losses to 613 thousand cr for FG18, is convinced of profits profits



NEW DELHI: Jasper Infotech, which owns and operates on the Snapdeal.com Internet market, has sharply reduced its losses in the fiscal year 2018, in which a Gurgaon company is forced to take a shift from its real estate business.

On a consolidated basis, the Soft-Bank Group, Alibaba Group and Fokconn supported an online loss of $ 613 in 2017-18, which is 87% less than the previous fiscal year, when it recorded a loss of 4,647.1 crore, according to documents the company submitted by the registrar of the company.

However, total revenues for the fiscal year 2018, including operating income, reached 514.5 crore rupees, which was more than a double drop in heat, compared to the FG17 when it reported revenue of 1,105.7 crore, as the company moved from premium products and even more to products branded products.

"Our main focus last year was to maximize the efficiency of our operations on the market before implementing the planned growth initiatives. We are extremely pleased to see the incredible results of our disciplined execution," Snapdeal said in a statement.

"The revenue segments, which were disproportionately lost losses, have been identified and shortened during the year so that the business will successfully grow with healthy margins."

In an exclusive interview with ET in September, Snapdeal CEO Kunal Bahl said the company, which was at its peak of more than $ 6 billion, sharply cut costs, and also drifted away from certain categories, such as premium smartphones and high-end consumer electronics, to improve the margin.

"We want to be the dominant player in the long tail market segment in terms of selling a selective seller, which is what our roots were as a company and company's goal in 2012," said Bahl ET.

"A lot of energy has actually ruined all inefficiencies in the system. The third thing was very sharply focused on the kind of goods we wanted to drive on the platform," said the company's CEO at that time.

Operating expenses for the year to March 31, 2018 were at 661.9 crore, which is less than 73% compared to the previous fiscal, as the company reduced costs related to personnel costs, marketing and propaganda costs and costs related technology.

In his interview with ET, Bahl said that the company's cash declined by 100% over a period of 12 months.

"In June 2018, we actually made cash at the company level. Since we have a very strong balance sheet, we have about 1.000 crocs, this is the problem of capital allocation for us," Bahl said.

The previous fiscal period was also the period when Snapdeal's founders had to fight against the company's offer to rival Flipkart, also the largest e-commerce company in the country, orchestrated by the largest shareholder in the online market, Japan SoftBank.

However, with the proposed contract that collapsed in July last year, Snapdeal introduced its strategy 2.0, which once again focused on a clean model of the market and sold its assets, a list that included the FreeCharge digital logging platform, the Logistics arm of Vulcan Express and multi-channel device to manage the Unicommerce account.


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