According to regulatory documents obtained from business intelligence platform Tofler, Samsung India’s income from operations increased 8.6% to Rs 82,451 crore in the financial year 2021–22 (FY22), driven by its mobile phone division. In accordance with the information provided to the Registrar of Companies, the revenue from the cell phone company alone totaled Rs 55,201 crore.
Industry insiders claimed that the aggressive pricing of mobile phones and televisions on e-commerce platforms to gain market share was to blame for the net profit’s 4.9% decline to Rs 3,844 crore.
In the required filings, the corporation did not give explanations for the increase in revenue or the decline in profit. When the Japanese automaker Maruti Suzuki recorded sales of Rs 88,295 crore in FY22, it overtook Samsung as the largest consumer-facing multinational firm in the nation.
Samsung India had edged Maruti to the top rank in FY21. The South Korean company’s overall revenue in India for FY22, including other income, was Rs 85,324 crore, an increase of 10% from FY21.
According to Tarun Pathak, research director at market research firm Counterpoint Research, the decline in its FY22 profit may be the result of a base effect. Pathak claimed that in FY22, there was a significant pent-up demand for consumer electronics products, with mobile phones as the top sub-category, as a result of the first wave of the Covid-19 epidemic (in 2020).
Samsung’s major industry in India is mobile phones, which account for 67% of total revenue despite slight sales declines from Rs 55,397 crore in FY21. With a 16.3% share of the market during the April–June quarter, market researcher IDC India reports that Samsung was the fourth-largest smartphone brand in India by volume (or number of units sold). According to IDC, Chinese company Xiaomi topped with a 20.4% market, followed by Realme (17.5%) and Vivo (16.9%).
Home appliances, which made up 12% of Samsung India’s second-largest division and had a revenue of Rs 9,981 crore, contributed. According to the disclosures, the network equipment company contributed more than 5%. According to the documents, Samsung has been exporting both components and goods made in the nation, including mobile phones. In order to establish a new compressor manufacturing facility in Sriperumbudur, close to Chennai, the company earlier stated that it will invest Rs 1,588 crore.
Also Read:
