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Snapdeal Loss Rises to 4,647 crore while revenue dropped to 1,291.3 in FY17

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Gurgaon Based Marketplace Snapdeal ( Jasper Infotech ) reported a net loss of  4,647 crores in FY17 with impacted by a provision for “impairment of goodwill” of Rs 1,797 crore.

Goodwill impairment is a charge that companies record when goodwill’s carrying value on financial statements exceeds its fair value. In accounting, goodwill is recorded after a company acquires assets and liabilities, and pays a price in excess of their identifiable value. Read more here

Snapdeal’s total income also declined by 12.6% to Rs 1,291.3 crore in FY2017 from Rs 1,478.2 crore in the previous year.

As per ET, Snapdeal spokesperson said:” the financial statement for the year 2016-17 “reflects the first stage of Snapdeal’s focus on unit economics and business efficiencies. Key highlights in this regard are the reduction in fulfillment cost by more than 20 percent (as a percentage of operating revenue) and reduction in operational losses by nearly 25 percent (excluding non-recurring cost on account of impairment of assets).” 

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He added that the company continues to make “rapid progress in driving profitable growth, which will be reflected in the results for the financial year 2017-18”.

With inputs from PTI.