Policy balance
The recent appointment of Sanjay Malhotra as Governor of the Reserve Bank of India (RBI), replacing Shaktikanta Das, signals a pivotal shift in India’s monetary policy dynamics.
Retail major Walmart on Tuesday said “limited operations” by its Indian e-commerce firm Flipkart amid coronavirus outbreak has “negatively affected growth” of its international business in the March 2020 quarter.
Walmart group’s overall net sales stood at USD 133.67 billion during the reported period, logging a growth of 8.7 per cent.
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Walmart International, which is present in nine markets including China, Japan, Mexico, the UK apart from India, saw sales growing by 3.4 per cent to USD 29.76 billion in the January-March period, with e-commerce accounting for 9 per cent sales.
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“E-commerce contributed 9 per cent of total segment net sales, led by growth in China, Canada, UK and Mexico. Limited operations of the company’s Flipkart business in India for a portion of the quarter negatively affected growth,” said Walmart in a post earnings statement.
India is presently under an unprecedented lockdown since March 25 to prevent the spread of the COVID-19 pandemic. The government imposed the lockdown, restricting commercial activities and vehicular movements, among other curbs.
While, in the US market Walmart recorded a 74 per cent growth in its e-commerce business.
“Store pickup and delivery, ship to home, ship from store and marketplace channels were strong throughout the quarter,” it said.
During the quarter, Walmart International’s gross profit increased 10 basis points on a reported basis, primarily due to the company’s Flipkart business.
However, this was “partially offset by an outsized change in mix towards lower margin categories and formats in response to COVID-19”, said Walmart.
During the quarter, Flipkart had also announced partnership with ride-hailing platform Uber to deliver everyday essentials to customers.
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