Snapdeal trims losses to `613 cr, con­fi­dent on hit­ting prof­its

Financial Chronicle - - MONEY GAME -

E-COM­MERCE firm Snapdeal has nar­rowed its con­sol­i­dated losses sub­stan­tially to Rs 613 crore for FY2017-18, as per reg­u­la­tory doc­u­ments.

The com­pany, which com­petes with larger ri­vals like Ama­zon and Flip­kart, had posted a con­sol­i­dated loss of Rs 4,647.1 crore in FY2016-17, doc­u­ments filed with the cor­po­rate af­fairs min­istry showed.

The con­sol­i­dated rev­enue from op­er­a­tions de­clined to Rs 436.1 crore for 2017-18 as against Rs 903.8 crore in FY17

On stand­alone ba­sis too, Snapdeal trimmed its losses to Rs 440.7 crore in FY18 from Rs 4,638.9 crore in the year-ago pe­riod. To­tal rev­enue was at Rs 514.6 crore in FY18 as against Rs 1,105.7 crore in the pre­vi­ous fis­cal.

Snapdea said that the com­pany had em­barked on its jour­ney to­wards prof­itabil­ity last year.

“This year, we con­tin­ued on this path and fo­cused on build­ing a leaner and more cap­i­tal ef­fi­cient busi­ness. We sub­stan­tially re­duced our costs, both vari­able and fixed over­heads,” it added.

The com­pany said it re­duced its busi­ness pro­mo­tion ex­pense by 88 per cent year-on-year. “We op­ti­mised the team struc­ture and lever­aged tech­nol­ogy more ef­fi­ciently, which was crit­i­cal in trim­ming our em­ployee ex­penses by 68 per cent y-o-y. While all of this has come at the ex­pense of lower top line, your com­pany is ex­tremely proud of its achieve­ments and is ab­so­lutely con­fi­dent that it is head­ing in the right di­rec­tion to achieve prof­itabil­ity,” it said.

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