Flipkart parent company reports 63% drop in losses, 43% rise in revenue. Alibaba posts 40% jump in Q2 revenue.
Flipping on Cloud 9: In its first yearly performance report since it was acquired by US-based retail chain Walmart, Flipkart reported a 63% drop in losses and a 42% jump in consolidated revenue in the FY ending March 31, 2019. The company also has decreased its overall expenses from INR46,895cr to INR17,281cr, it said in its filings in Singapore.
Flipkart Pvt Ltd is the parent company of e-commerce platforms Flipkart, Myntra and Jabong; logistics firms EKart; and digital payments company PhonePe. Despite the positive numbers, three key units – Flipkart Internet, Flipkart India and PhonePe – have incurred heavy losses this year. Inc42
Chinese Juggernaut: Despite domestic consumption slowdown in China and trade doldrums abroad, Alibaba reported a 40% rise in Q2 revenue, exceeding expectations.
Total revenue rose to $16.91bn in the quarter ending in September. The company’s e-commerce business reported a 40% increase in sales while its cloud computing business posted a 64% jump in revenue.
Alibaba’s US-listed shares climbed c. 2% to $180.25 in trading before the bell.
The strong growth numbers come as China’s largest company gears for its annual Singles Day shopping gala, faces increased competition at home, and looks to launch a Hong Kong IPO. Reuters
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