Microsoft Corporation India’s turnover fell 12% to Rs 6,312 crore in 2017-18 after it discontinued marketing, sales and distribution of mobile devices and accessories. Excluding revenue from the mobile business of Rs 896 crore a year earlier, Microsoft’s revenue would have remained flat in 2017-18, according to the company’s latest filing with the Registrar of Companies. Net profit fell 23% to Rs 358 crore.
“This year’s (2017-18) numbers seem to be a one-off case,” said Sanchit Vir Gogia, chief executive at Greyhound Research, adding that Microsoft had taken a hit owing to the discontinuation of the “lowmargin and high-tension” mobile marketing business.
Experts said Microsoft has gone through a lot of changes globally, which is reflecting in India too.
“We cannot really count these numbers as a reflection of their broader game plan for the country. This is a loss (decline in business) that they have to make in the short term to realign their business towards cloud, cyber security,” said Gogia.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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