SoftBank Group Corp, the Japanese conglomerate behind companies like OYO, Ola, Paytm, PolicyBazaar, amongst others has reported an operating income of ¥715 billion (approx $6.4 bn) for the quarter ended June 30, 2018 (Q1 FY18), representing YoY increase of 49.2%, boosted by a gain in valuation its subsidiary, Vision Fund, after the conglomerate sold its entire 21% Flipkart stakes to Walmart.
Softbank’s operating income from SoftBank Vision Fund and Delta Fund increased to ¥239,944 million ($ 2152 Mn) from ¥105,229 million ($ 944 Mn) in the same period of the previous fiscal year. “This was mainly due to the recording of unrealized valuation gain of ¥164,253 million recognized accompanying the agreement on the sale of Flipkart,” the company said in its statement. Its Vision Fund, which is also the world’s largest private equity fund, is now worth $32.5 billion, the company said in a release.
As part of the Flipkart deal, Softbank also recognised a deferred tax of ¥71,746 million ($644 mn). “The company estimates that the sale of Flipkart shares will occur within 24 months of the inception of the investment and has calculated the deferred tax at 43.68%, being the Indian short-term capital
gains tax rate expected to apply to the sale of Flipkart shares,” it stated in its financial results statement.
Further, the firm’s profit was also boosted by the sale of its stake in chip designer ARM Holding’s Chinese operations to a local consortium