Vivo Mobile India, the third-largest smartphone brand in India by sales, has reported a net profit of ₹211 crore for the fiscal year 2022-23. This comes as a significant turnaround for the company, which had reported a net loss of ₹123 crore in the previous fiscal year. The company’s sales also grew by 9% compared to the previous year. The improved financial performance can be attributed to better inventory management and increased local production. Vivo Mobile is currently under investigation for alleged breaches of local financial laws and violations of the Prevention of Money Laundering Act. The company is accused of remitting large amounts of its revenue to its Chinese parent company to avoid paying taxes. It is also being investigated for alleged money laundering activities by the Enforcement Directorate. Despite these challenges, Vivo Mobile India managed to generate its second-highest profits, with revenues from operations reaching ₹29,874.90 crore in FY23. The company’s profits were further boosted by additional income from other sources amounting to ₹78 crore. Vivo Mobile India’s success can be attributed to its strong position in the offline smartphone market and increased focus on local production and efficient inventory management. The company has a wide network of retail stores across the country and has been able to increase its market share by operating on a leaner inventory. The company’s commitment to providing sufficient channel partner schemes, price cuts, and stock clearance has also contributed to its success. However, Vivo Mobile India had to deal with an 8.2% increase in total expenditure, primarily due to rising costs of materials, employee benefits, finance costs, and depreciation. Despite this, the company managed to achieve its second net profit in the past seven years, with FY21 being the only other year when it reported a profit of ₹552 crore. Vivo Mobile India’s financial performance stands out in a declining smartphone industry, which saw an overall 10% decline in shipments due to macroeconomic headwinds and rising costs of components and foreign exchange. The company managed to maintain its position as India’s third-largest smartphone brand by effectively managing inventories and introducing more premium handsets. Vivo Mobile launched seven models above ₹30,000 in 2021 and increased the number to ten in 2022. The company also expanded its presence in international markets by starting exports to Malaysia and Thailand. The company plans to export over 1 million India-made smartphones in 2023. Vivo Mobile India’s success in FY23 is a result of its strategic investments and focus on improving inventory management and increasing local production. The company has invested ₹2,400 crore so far and plans to invest an additional ₹1,100 crore by the end of this year. Vivo Mobile India’s financial report stands as one of the first among major Chinese smartphone brands to be filed with the Registrar of Companies (RoC). Other brands, such as Oppo and Xiaomi, are yet to hold their general meetings and file their financial statements for FY23.