Published
Jan 10, 2018
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LVMH posts Rs 178 crore revenue in FY17 for India, profit up 50 percent to Rs 8 crore

Published
Jan 10, 2018

The world’s biggest luxury goods maker LVMH Moët Hennessy Louis Vuitton reported surge in sales revenue for the financial year ended March 2017 with profits jumping 50 percent from last fiscal, according to documents filed with the Registrar of Companies and consulted by research platform Tofler.
 

The group credited its brands Christian Dior and Louis Vuitton for the revenue growth - Photo: LVMH


The group which owns fashion brands such as Louis Vuitton and Christian Dior saw an increase in sales revenue which reached Rs 178 crore (approx $28 million) compared to the Rs 167 crore (approx $26.2 million) it reported last year.
 
The profits after tax jumped almost 50 percent to Rs 8 crore (approx 1.3 million) from the 5 crore (approx 0.8 million) it had reported in the previous fiscal, according to data filed by the firm with the Registrar of Companies in India.

Globally, the luxury group has been doing reasonably well and has credited its brands Christian Dior and Louis Vuitton for the revenue growth. Despite demonetisation which hit the luxury sector hard due to the cash crunch LVMH’s managed to report strong growth.
 
The current financial year has also proved to be challenging for many luxury firms post the implementation of Goods and Services Tax (GST) which has put all the luxury goods firms under the 28 percent tax slab. The high taxes have taken a hit on sales, so it remains to be seen if LVMH manages to replicate similar or better numbers in the current fiscal.
 
However, the positive of LVMH is that recently it managed to get the nod from the Indian Government’s Department of Industrial Policy and Promotion for foreign direct investment (FDI) proposals for single-brand retail. Louis Vuitton’s FDI proposal was to allow the addition of more products which is likely to boost its revenue.

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