Chinese smartphone company Vivo saw its revenue in India growing over 45 percent to about Rs 25,060 crore in FY20 even as its losses widened significantly over the previous fiscal, according to regulatory filings.
Vivo Mobile India's revenue from operations were at Rs 17,201.7 crore for the year ended March 31, 2019, according to Registrar of Companies filing – shared by market intelligence firm Tofler.
The company, which competes with players like Xiaomi and Samsung in the Indian market, saw its losses widen to Rs 348.94 crore in FY20 from Rs 18.94 crore in FY19. Vivo's total expenses rose to Rs 25,618.79 crore in FY20 from Rs 17,397.71 crore in the preceding fiscal, the filing said.
"During the period under review, the company has recorded an increase in sales as compared to the sales of the financial year 2018-19. Overall sales have been increased by 45.68 percent against the previous year. The company incurred the loss of Rs 34,894.14 lakhs in the current financial year (FY20) as compared to the loss of Rs 1,894.45 lakhs of the previous financial year," it added.
Vivo said it will continue its focus on reducing costs and improving efficiencies, tapping new business opportunities, enhancing value addition to its customer base and maximising capacity utilisation with least cost to achieve higher revenue and improve profitability.
"The company has also invested in new technologies and assets for product diversification and to make available adequate manufacturing capacities for the growth and to cater to customer requirements in the forthcoming years," the filing stated. When contacted, Vivo said the company has witnessed steady growth in the country through its sustained customer-centric strategy.
"With around 70,000 retail outlets across the country and an annual production capacity of 33 million units, Vivo is one of the strongest players in the Indian offline market. 2020 was a difficult year for all of us. Despite the pandemic, Vivo introduced technologically advanced products for its customers and consolidated its robust distribution and sales network," Vivo said in its emailed response. The company emphasised that its commitment to the Indian market is "absolute" and that it is "here for the long-term".
"It's our continuous endeavour to provide innovative smartphones to our customers and build credibility for the brand. As a long-term potent player, we shall continue to invest in the future and create a delightful end-to-end experience for our valued customers and partners," Vivo said. India saw smartphone shipment at over 150 million units in the pandemic-hit 2020. The smartphone market grew 19 percent year-on-year in December 2020 quarter with Xiaomi (including POCO) at numero uno position with 26 percent market share during the quarter.
Samsung ranked second (21 percent), followed by Vivo (16 percent), Realme (13 percent) and Oppo (10 percent) in the fourth quarter of 2020, according to Counterpoint data.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
