Vivo Mobile India's FY22 net loss at Rs 123 crore
Vivo Mobile India, which is facing a probe for repeatedly reporting losses in its local operations allegedly to avoid paying tax while remitting huge amounts to its Chinese parent, posted a loss for fiscal 2022 after recording a profit in the previous year.
The smartphone company reported a net loss of Rs 123 crore for FY22, as per its recent filings with the Registrar of Companies (RoC), compared with a net profit of Rs 552.5 crore in FY21, even as sales rose 9% to 26,971.11 crore. It did not give any reason for swinging back to a loss in FY22.
The Enforcement Directorate (ED) had filed a chargesheet last week against the company alleging that it had remitted Rs 1 lakh crore outside India between 2014 and 2021 by showing losses to avoid paying income tax, ET among others had reported.
An email sent to Vivo seeking comment remained unanswered till Monday press time.
ET reviewed Vivo’s last six annual filings available with the RoC, which showed that the company reported net losses in FY17, FY18, FY19, FY20, and FY22, with FY21 being the only exception.
“The company will continue its focus to reduce costs and improve efficiencies, enhance value addition to its customer base and maximise capacity utilisation with least cost to achieve higher revenue and improve profitability,” Vivo said in the latest RoC filings made on November 25.
Vivo in the filings said its auditors had not made adverse observations or reservations about the company.
