The company’s net loss also narrowed marginally to Rs 86 crore in FY23 from Rs 95 crore in FY22, according to regulatory filings made with the Registrar of Companies (RoC). In FY22, ATS had clocked a revenue growth of almost 13%.
ATS’ financial numbers are in line with a deceleration seen in Amazon’s other India businesses during the last fiscal, as the Seattle-based parent is pulling back on cash burn across the board.
The company’s marketplace business in India — Amazon Seller Services — reported an on-year growth of a little over 3% in its operating revenue for FY23 to Rs 22,198 crore. This entity earns revenue from third-party seller services, subscription services, and other marketplace-related services such as advertising revenue and support services to related parties.
Meanwhile, its local payments business Amazon Pay India’s FY23 revenue grew only by around 5% year-on-year to Rs 2,093 crore.
ET also reported on December 3 that Appario Retail, the largest seller on Amazon India, reported an 8% drop in revenue for FY23 at Rs 14,604 crore.
ATS’ total expenses during FY23 stood at Rs 4,660 crore, slightly lower than Rs 4,678 crore in FY22. Its FY23 expenses on account delivery service fees were Rs 2,811 crore, lower than Rs 2,843 crore in FY22. Meanwhile, costs incurred on consumption of packaging materials fell to Rs 158 crore against Rs 176 crore in FY22.
Over 95% of the company’s revenue comes from Amazon. ET had reported in November last year that ATS was opening up its logistics infrastructure to deliver non-Amazon orders as well, making it a direct rival to new-age logistics companies such as Xpressbees, Delhivery, and Ecom Express.
Amazon has also opened up its fulfillment infrastructure to sellers and direct-to-consumer (D2C) brands even if they aren’t selling on the platform.
During FY23, ATS received a total infusion of Rs 775 crore from its parent company in two tranches — Rs 400 crore in January this year, and Rs 375 crore in June 2022. In FY22, the company received an infusion of Rs 365 crore from its parent entity.
The additional fund infusion in FY23 came in at a time when Amazon’s marketplace business was ramping up its seller base and product catalogue.
However, in FY24, ATS hasn’t received any additional investment from its parent company so far.
In August this year, senior vice president for India and emerging markets, Amit Agarwal told ET the company started supporting its India investments from the revenue it generates from the local market.
“Our ecommerce business is generating enough revenues that allow us to make the desired investments into infrastructure and logistics,” he had said.
