Flipkart had acquired Walmart India’s wholesale business in July this year. (Image: PTI)
Walmart India, whose wholesale operation was acquired by Flipkart in July this year, saw its losses for the financial year (FY) 2020 increase 74 per cent from last FY. The company reported Rs 299.20 crore in net loss up from Rs 171.68 crore in FY19, according to its FY20 financials accessed by business intelligence platform Tofler. Flipkart had acquired “100 per cent interest in Wal-Mart India Private Limited, which operates the Best Price cash-and-carry business,” it had said. Walmart owned and operated 28 Best Price cash and carry wholesale stores that offered nearly 5,000 items along with two fulfilment centres based in Lucknow and Hyderabad. Alongside, Flipkart, which would be hosting its Big Billion Days between October 16-21, had also launched an exclusive B2B marketplace – Flipkart Wholesale – for MSMEs and kiranas to enable them to procure goods in categories including grocery, general merchandise, or fashion along with offering schemes and incentives.
Revenues, on the other hand, for Walmart India during FY20 jumped 20 per cent to Rs 4,926 crore from Rs 4,095 crore while operating revenue increased from Rs 4,061 crore to Rs 4,910 crore. Moreover, expenses also shot up 22 per cent from Rs 4,266 crore to Rs 5,225 crore for the year ending March 31, 2020. Out of the total expenses, Rs 4,451 crore was involved in purchases of stock in trade up from Rs 3,721 crore from FY19. Purchases of stock in the trade refer to finished goods bought by the company towards conducting business. Other major expenses were towards employee benefit expenses – Rs 349 crore and other expenses – Rs 310 crore.
Walmart India’s US parent Walmart had reported a 5.6 per cent increase in its revenue for the quarter ending July 31 FY21 to $137.7 billion from $130.4 billion for the year-ago period. However, its international business witnessed a fall of 6.8 per cent partly due to India’s Covid lockdown. Walmart International had reported net sales of $27.2 billion for May-July quarter down from $29.1 billion for May-July quarter of FY20. “Net sales included the effects of the government-mandated closure of the company’s Flipkart business in India for a portion of the quarter, as well as similar actions in markets in Africa and Central America,” Walmart had said in its earnings release. Walmart’s fiscal year is February-January.