Homegrown mobile handset maker Lava International has been in the limelight for entering the wearable market segment. Today, the company has come a long way from competing with Chinese smartphone makers and other domestic brands. Though Lava International vanished for a few years due to low market demand, it soon flourished for its homegrown products.
We have seen the dominance of the company in the handset industry, and now it is preparing to make an impact in the wearable market as well with its state-of-the-art products. This news has already enticed investors to invest in Lava unlisted shares to diversify their investment portfolio and earn high ROI. But one question is, how does the company's decision to enter the wearable market make an impact on its profit and loss statement?
In this blog, we will shed light upon Lava's decision to enter the wearable market and its impact on P&L. Let's start and talk about it below.
Lava To Prepare For Wearable Market
Sunil Raina, President and Business Head of Lava International, said in an interview with Business Line that with government support, a lot of things have changed at the policy level, and with 5G services in India, the market looks promising. He also said that the company grew 2x against the previous year, and in the past few years, the company has been performing well in the smartphone segment. In FY22, the recorded revenue of the company was Rs. 5,878 crores against Rs. 5,513 crores in FY21. This shows the company's positive outlook and performance in its business. However, the company did not perform well in the unlisted share space, as its unlisted share prices were reduced from Rs. 195 to Rs. 135 and are currently trading at Rs. 115.
Impact On Lava's Profit And Loss Statement
Lava International recorded high revenue for its homegrown smartphones in the past few years. Its revenue from operations in FY21-22 was Rs. 55,128 crores, which increased to Rs. 58,980 crores in FY22-23. Further, the profit before tax also reached Rs. 2031 crores, which depicts the company's healthy growth. Now, as the company plans to enter into a wearable segment, its profit will surely boost in the future with the expansion of products in the market domestically and internationally.
Increased Revenue
Raina said that with this decision to enter a wearable segment, they would focus on products such as smartwatches and audio products like TWS, headphones, earbuds, and neckbands. If the company offers high-quality products at affordable prices, it will surely help them increase their profit by 4x compared to the smartphone products they are selling currently. One thing is clear with the launch of Lava's wearable products in the market: it will only beat giant brands, boAt, Zebronics, etc., in the future.
R&D Expense
The introduction of any new product requires proper research, cost, etc. Lava's latest venture in the wearable segment demands the same; the company will need to allocate resources to design and develop innovative products that will entice people to purchase. So, this might result in increasing their expenses to some extent.
Marketing And Promotion
Since Lava is entering a highly competitive market that is dominated by giant brands like boAt, it will have to invest in marketing and promotion to create awareness in the market. This will include expenses like advertising, promotional campaigns, and branding.
The Focus On Targeting Global Market
There is no doubt that Lava is all set to expand its business operations and product portfolio. Since it's a multinational company operating in more than 11 countries, with the launch of smart wearable audio products, the company will surely establish its presence globally. Also, they might set a pricing strategy for each country in which they offer their products.
One thing is very true: the decision of Lava to enter the wearable market will positively impact its unlisted shares in the market. People who want to diversify their portfolio can buy Lava unlisted shares and earn high ROI. Stockify is an online trading platform with a team of expert brokers who can help you buy unlisted shares of top pre-IPO companies in India. Whether you want to invest in Lava unlisted shares or any other company, our expert brokers will guide you through the buying and selling process.
Additionally, we can give you all the necessary information that is required for trading, like EBITDA, EPS Growth, Profit and loss statement, etc. So, what are you waiting for? Speak to expert brokers today and start trading.
FAQs
Is Lava International a good company to invest in?
Ans. Lava International is a prominent MNC in the mobile handset industry. Currently, the company is gearing up for the wearable market to expand its product portfolio and business operations.
What was the operating revenue of Lava International in FY 21-22?
Ans. The operating revenue of the company was Rs. 5,878 crores against the previous year, which was Rs. 5515 crores.
What is the current Lava unlisted share price?
Ans. Lava unlisted shares are currently trading at Rs. 115 per equity share, but the price fluctuates per the company's performance and share market trends.
Where can I buy Lava pre-IPO shares in India?
Ans. You can easily buy Lava unlisted shares at Stockify, which is the number one stock trading platform in India for pre-IPO stocks. Speak to our experts today.
Why should I trust Stockify?
Ans. Stockify is a leading online stock broking platform with expert, certified, licensed, and experienced stock brokers who help you buy and sell unlisted shares in India.
