Samsung’s wholly owned subsidiary has recorded total income of ₹98,924 crore in 2022-23, showed the company’s recent regulatory filings to the Registrar of Companies (RoC). Samsung India Electronics’ sales are 65% more than Hindustan Unilever Ltd (HUL) and 35% more than ITC Ltd‘s FY23 sales.
Phone business generates ₹70,292 crore
Samsung India’s sales grew by 16% in FY23 compared to the year before, but net profit fell to Rs 3,452 crore from Rs 3,844 crore in 2021-22. This is when demand for smartphones, televisions and household appliances nosedived since the second half of last fiscal due to macroeconomic headwinds.
The company did not give reasons for its FY23 earnings performance in the RoC filings. An email sent to Samsung India did not elicit any response till press time on Thursday.
This is the second consecutive decline in annual profit for Samsung India.Samsung’s mobile phone business, the largest in India, raked in revenue of Rs 70,292 crore in FY23, surpassing the standalone revenues of ITC (Rs 70,251 crore) and HUL’s (Rs 59,144 crore).Samsung India’s mobile phone sales rose by 27% in FY23, which industry executives attributed to higher share and success of the ultra-premium Galaxy Z series of flip and fold phones, the premium S series phones and maintaining its share in the mid-segment – industry segments which posted growth last fiscal.
Tarun Pathak, research director at market tracker Counterpoint Research, said Samsung strengthened its premium play in smartphones across price points with the Flip, Fold and S series models, driving up the average selling price in India by 15%. Its smartphone sales also grew last fiscal despite a decline in the overall market.
“The company has also launched its own financing scheme which has made rapid inroads helping to upsell to the customers. Last fiscal, Samsung also wrested back the market leadership from Xiaomi,” said Pathak.
The mobile business now accounts for 71% of Samsung’s total sales in India, up from 67% in FY22. The company’s second largest business in India is home appliances where it logged sales of Rs 11,844 crore in FY23, growing 18% from the previous year.
“There has been a recent 30% jump in capital expenditure at Samsung India, accompanied by a substantial increase in workforce investment, which underscores the company’s strong commitment to the long-term prospects in India,” said Mohit Yadav, founder at business intelligence firm AltInfo.
Samsung, in its RoC filings, said it has grown from “a one-room, two-employee startup to the country’s biggest” consumer brand. The company last year announced an investment of Rs 1,588 crore to set up a new compressor manufacturing plant near Chennai to expand the component ecosystem in the country.
Samsung leads the smartphone market in India with 18% share in the June quarter, followed by Vivo at 17%, Xiaomi at 15%, Realme at 12% and Oppo at 11%, as per the latest report by Counterpoint Research. The researcher said in smart televisions, Samsung is at the second spot with 9.6% share trailing Xiaomi’s 9.8% share in January-June period of this year.
