Alibaba’s fourth-quarter revenue beat on Thursday, as growing demand in China for some of its niche shopping services offset weakness in its key markets due to the country’s COVID-19 lockdown.

U.S.-listed Alibaba shares are down about a third so far this year, rising about 5% in premarket trading.

Revenue from Alibaba’s cloud computing division rose 12 percent to 18.97 billion yuan (approximately Rs 21,845 crore) in the reported quarter. In its largest core business segment, revenue rose 8 percent to 140.3 billion yuan (approximately Rs 1,616.43 crore).

However, the company said it would not release a forecast for the new fiscal year, citing risks and uncertainties related to the pandemic.

Rival beat quarterly revenue estimates last week as more people shopped for groceries and other necessities, but it warned that supply chain disruptions and sluggish consumption would hit in coming quarters.

Overall, Alibaba’s revenue for the quarter rose 9% to 204.05 billion yuan (about 24,971 crore rupees). Analysts on average expected revenue of 199.25 billion yuan (about 229.44 billion rupees), according to Refinitiv data.

Annual active consumers on its platform about 1.1 billion this fiscal year, with Chinese consumers breaking the 1 billion mark for the first time.

Net profit attributable to shareholders fell 59% to 61.96 billion yuan (about 71.73 billion rupees) in the fourth quarter ended March 31, mainly due to losses related to equity investments in listed companies.

Alibaba’s fintech subsidiary Ant Group reported a profit of about 22 billion yuan (about 25.32 billion rupees) in the quarter ended December, with 21.76 billion yuan a year ago, according to a filing by Alibaba on Thursday. (approximately Rs 25,056 crore).

See also  JPMorgan analysts predict end of India's IT growth boom as inflation soars, supply chain woes

© Thomson Reuters 2022