The acquisition of Flipkart by Walmart may negatively impact the net income of the latter this fiscal and also the next, said Walmart in its recent regulatory filing.
The US retail giant had last month said it completed the acquisition of 77 per cent stake in Flipkart Group, an Indian-based eCommerce marketplace, for approximately USD 16 Billion.
We also expect the ongoing operations of Flipkart to negatively impact fiscal 2019 and 2020 net income, including additional interest expense due to the long-term debt issuance in the second quarter of of fiscal 2019.
Beginning in the third quarter of fiscal 2018, Walmart will consolidate the financial statements of Flipkart using a one-month lag, it added.
Speaking in an investors meet in U.S recently, Douglas McMillon President, CEO and Director Walmart Inc said they are learning about retail ecosystems and how they work around the world.
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