Google India saw a surge in its net profit and total revenue for the financial year 2021-22, as the Internet giant benefited from a pandemic boom in online advertising led by increased digital adoption.
The company posted a net profit of Rs 1,238.9 crore for the year, registering a 53.3 percent year-on-year (YoY) jump from Rs 808 crore profit a year back, as per the company's latest filing with the Registrar of Companies, shared by business intelligence platform Tofler.
Operating revenue grew to Rs 9,286 crore for the financial year, posting a 48.4 percent YoY increase from Rs 6,257.1 crore in the previous financial year. Total revenue rose to Rs 9,439.3 crore for the financial year, a 46 percent YoY jump from Rs 6,386.2 crore in the previous financial year.
The gross advertising revenue grew to Rs 24,926.5 crore for the year, a 79.5 percent increase YoY from Rs 13,886.7 crore in the past year. The net advertising sales were at Rs 2,080.9 crore, up from Rs 1,624.5 crore in FY21
Google India is a third-party reseller of advertising space for the Google Adwords programme and other Google advertising products and services in India. The firm also provides IT/ITeS, marketing and other support services to its group entities.
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Net sale of enterprise products was at Rs 88.8 crore for the financial year, as compared to Rs 66.6 crore in the previous fiscal. This includes sales from its cloud computing, productivity and collaboration tools including Gmail and Google Docs. The gross sales from enterprise product sales were at Rs 840.4 crore for the year, up 38.5 percent from Rs 606.6 crore in the previous year.
Google India said it earned Rs 4,978.5 crore from providing IT services during the financial year, a 70.9 percent increase from Rs 2,913.3 crore in the previous year. The tech giant also generated Rs 2,137.8 crore from providing ITES services during the financial year, up from Rs 1,652.7 crore in the previous year.
In terms of expenses, Google India saw its employee benefits expense increase to Rs 4,988.1 crore in FY22 from Rs 3,230.8 crore in FY21. This includes a 56.6 percent increase in salaries, bonuses and other allowances to Rs 2,821 crore for the year and a 50 percent rise in share-based payment expenses to Rs 1,883.5 crore.
The company also paid an equalisation levy of Rs 1,370.7 crore to the government during the fiscal, which is 6 percent of their gross ad revenues, as per the filing.
These developments come at a time when India's competition watchdog Competition Commission of India (CCI) has dealt two back-to-back blows to Google that could have a significant impact on how the internet giant does business.
The commission has passed antitrust orders on two of Google's businesses - Android and Google Play Billing - directing the company to implement a list of remedial measures apart from paying a combined provisional penalty of Rs 2,274 crore. Google said it was currently evaluating the next steps on both orders.
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