Gurgaon-based Micromax that was once seen as a close competitor to iconic brands like Nokia and Samsung is now seems to be biting the dust in its home turf. This company which was founded in 2000 with the vision of its founder Rahul Sharma has witnessed a phenomenal growth during its remarkable journey. However, not all is going well for the company since last few years. At least data proves that all. Company’s revenue has been reduced by half since fiscal year 2016 and its profit also plummeted to a larger extent.
According to sources it has been found that Micromax had earn a total revenue worth INR 5,614 crore in 2017 which reduced to just INR 4,430 crore in the fiscal year 2018. This steep fall in the revenue by 26 percent is giving thunders to its stock holders as the company had hit nearly 10,000 crore mark in its revenue in FY16.
On the front of gaining profit from its business operations in the FY18, Micromax has given a lack lustre performance. The company’s profit has fallen to whopping 76 percent to just INR 104 crore in FY18 as compared to the profit of INR 365 crore that it has earned in the year ago period.
The company is taking many corrective measures to improve the deteriorating financial health of the company. One such measure where Micromax has done better is managing its operational expenses. Its total expense was just around INR 4,293 crore, much less than its previous year.
In its initial and subsequent years, Micromax came out with many innovative and interesting features that were received quite well by the consumers. It is in fact, once, the most popular phone brand in India whose sales even exceed than that of Samsung.
However, by the end of year 2015, Micromax started losing its shine. Many experts believe that the entry of newer players like Xiaomi, Vivo and Oppo, among others has dented the business prospects of Micromax in its home ground. While others believe, Micromax has unable to grasp the changing market realities and consumer expectation after the roll-out of 4G services in India and had led to such a situation.
The company had won INR 1,500 crore deal with Chhattisgarh government in 2018 to distribute 50 lakh smartphones to its state citizens. In this election year, Micromax is hoping to capitalize through more such sops. However, experts believe this is not a viable strategy and the company has to think some out-of-the-box ideas to sustain long in this fiercely fought battle of Mobile market.