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Amazon Q2 net slumps 77% to Rs 1,264 cr, remains committed to India

Despite widening losses, Amazon remains committed to making further investments in India

Press Trust of India  |  New Delhi 

Amazon India has been investing in building warehouses, strengthening logistics & product assortment

E-tailing giant Amazon's net profits tanked 77 per cent to $197 million (Rs 1,264 crore) in the June quarter hurt by wider losses in international operations but said it remains committed to investing in

Amazon's operating losses in its international business widened to $724 million (Rs 4,646 crore) in June 2017 quarter against a loss of $135 million in the year-ago period.

Its revenues, on the other hand, jumped close to 25 per cent to $37.5 billion. Operating income of Amazon's North America business fell 38 per cent, while that from Web Services (AWS) rose 27 per cent.

Despite widening losses, remains committed to making further in

"...We continue to invest in We are very hopeful with the progress we have made with sellers and customers alike in India and we see great momentum and success there, so we continue to invest and we have some of our best people in that business," Chief Financial Officer Brian T Olsavsky said in an investor call.

Explaining the company's strategy, he said: "... We continue to invest in, as I said, fulfilment capacity and services, digital video... India, the buildup at the AWS infrastructure, all the things I mentioned not to mention Prime Now and Amazon Fresh and Prime benefits."

The Seattle-based company, which is locked in an intense battle with in India, has been aggressively pumping in money across its units here, including and

Since January this year, it has pumped in 600 million (Rs 3,800 crore). It had committed worth $5 billion to the Indian market last year.

Amazon India, which has recently completed four years of operations, has been directing its towards building warehouses, strengthening and increasing

Besides, money is also being invested in marketing and promotions as the company looks to bring more into shopping online on its platform.

In April, had raised $1.4 billion in funding from Tencent, and It is also believed to be in discussions to buy smaller rival, that is expected to further intensify the battle.

First Published: Fri, July 28 2017. 18:06 IST