Panasonic India lapsed back into losses in FY18, after clocking its maiden profit a year ago, with revenue too dipping last fiscal, as per latest regulatory disclosures.
Panasonic’s flagship Indian entity, Panasonic India, reported net loss of Rs 131.8 crore in 2017-18, compared with a net profit of Rs 72.2 crore in FY17, it reported to the Registrar of Companies (RoC).
The company’s revenue too dipped marginally by 3 percent last fiscal to Rs 5409.2 crore from Rs 5589.9 crore in 2016-17. Panasonic India said the losses were due to “internal and external risk exposures”, without disclosing any further details.
The company also said that it faced challenges last fiscal after it changed the business strategy for the smartphone business by taking over “entire sales channel creation and service operations on its own,” Panasonic India said in the filings. “the management has taken a rigorous review of the mobility operation and steps are being taken in order to successfully sail through this tough situation.
Also, management is under process to bring in effective changes in the business strategy to secure the interest and to promote the business growth and profitability of the company,” Panasonic India said.
When contacted, Panasonic India CEO Manish Sharma said Panasonic businesses in India, including group companies, crossed Rs 10,000 crore in 2017-18, registering a growth over the previous year.
“Overall, we continue to be profitable, however some consumer categories were impacted in the backdrop of the sluggish demand post demonetization and goods and services tax implementation which in turn has impacted the overall industry growth. In 2017-18, revenues of Panasonic consumer appliances and enterprise business witnessed 10 percent year-on-year growth, if we were to compare it using the previous tax regime,” Sharma said.― Robusta Information Hub