Amazon net profits dipped 77% to Rs 1,264crore in June, this effect occurred majorly due to wider losses in international operations. But it still remains committed to investing in India.
Amazon's operating losses in its international business enhanced to $724 million in June 2017 quarter against a loss of $135 million in the year-ago period.
On the other hand, its revenues rise close to 25% to $37.5 billion. Also, operating income of Amazon's North America business fell 38%, while that of Amazon Web Services (AWS) rose 27%.
Amazon Chief Financial Officer Brian T Olsavsky said in an investor call, "we continue to invest in India. 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,"
He further said: "we continue to invest in, as I said, fulfilment capacity and logistics services, digital video in India, the build-up of the AWS infrastructure, all the things I mentioned not to mention Prime Now and Amazon Fresh and Prime benefits."
The e-commerce giant is locked in intense battle with Flipkart in India. To be the best e-commerce service provider in India, Amazon has been aggressively investing in its units here.
Since the beginning of this year, it has pumped in $600 million (Rs 3,800 crore). It had committed investments worth $5 billion to the Indian market last year.
Amazon India, which has recently completed four years of operations, has been directing its investments towards building warehouses, strengthening logistics, increasing product assortment and marketing to capture more consumers in India.
In April, Flipkart had raised $1.4 billion in funding from Tencent, eBay and Microsoft. It is also believed to be in discussions to buy a smaller rival, Snapdeal that is expected to further intensify the battle. ET reported.