Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,888.60-48.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Microsoft India’s software sales stay flat in FY18

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.

Dec 27, 2018, 07.22 AM IST
0Comments
Agencies
Microsoft
The technology giant gets almost 93% of its revenue from retail software products, which declined marginally to Rs 5,828 crore.
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.

The technology giant gets almost 93% of its revenue from retail software products, which declined marginally to Rs 5,828 crore. Income from search online-advertising and services grew 11% to Rs 483 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. Microsoft said it does not comment on market-wise numbers.

In the recent past, Microsoft has focused on ramping up enterprise business solutions that can be hosted on the cloud (remote servers accessed through the internet) and products such as Office 365 and Kaizala since the company has seen a declining trend in its traditional enterprise business business. While the retail software products business remained almost stagnant, the company has been realigning its goals to strengthen cloud offerings and infrastructure-as-a-service 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.

Also Read

InMobi extends partnership with Microsoft

Ola in talks with Microsoft for $200 million funding

Microsoft, Jio empowering small businesses in India: Nadella

Microsoft India earnings at $1b on cloud push

TCS launches Microsoft Business Unit to help enterprises leverage AI, ML

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service