Microsoft India’s profit rises 30% in FY23 at Rs 648 crore, revenue jumps 39%

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Global tech giant Microsoft’s India business has reported a 30.2 percent growth in net profit on a year-on-year basis for the fiscal year ended March 30, driven by the uptick in adoption of the company’s software and services by Indian enterprises during the pandemic years.

Profit for the period stood at Rs 648.67 crores. Consolidated revenue for FY23 stood at Rs 19,353.79 crore, growing 39% YoY, up from Rs 13,922 crore in FY22, according to the company’s filings sourced from Tofler.

Microsoft, which incorporated in India in 1988, offers product and services.

Products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games. Revenue from sale of products stood at Rs 4508.33 crores.

Revenue from services came in at Rs 13,103 crore. Service and other revenue includes cloud-based solutions that provide customers with software, services, platforms, and content such as Microsoft Office 365, Microsoft Azure, Microsoft Dynamics 365, and Xbox Live; solution support; and consulting services, the company said.

Meanwhile, the company’s advertising promotional expense declined by 14.72 percent YoY to Rs 3720 crores.

Bullish on India

In January, during his visit to India, the company’s CEO Satya Nadella hailed India’s advancement in building and adopting population scale digital public infrastructure and applications such as UPI, DigiLocker, Aadhaar etc.

Nadella had outlined six imperatives that he believed would drive economic growth through technology in India, surrounding several of Microsoft’s products. These imperatives included migrating to cloud, unifying data and applying AI models, empowering fusion teams of tech and non-tech domain experts and re-energising workforces to name a few – signalling his bullishness on India.

Leadership changes

Microsoft India also saw a slew of leadership changes in the past few months. The company's former India president Anant Maheshwari resigned in July, followed by then COO Irina Ghose being promoted as the India managing director.

In August, former AWS India head Puneet Chandok was appointed as the corporate vice president of Microsoft for India and South Asia