Google India saw its revenues surge by 26 percent year-on-year (YoY) to Rs 5,921.1 crore for the financial year ended March 2024 (FY24), from Rs 4,700 crore revenue in FY23.
The increase in revenue was primarily driven by strong growth in digital advertising in India, spurred by rising digital adoption, as well as a jump in the sales of the tech giant's enterprise products in the country.
These revenue figures do not include income from the company's discontinued operations of Rs 1,176 crore for FY24. If included, the total income was at Rs 7,097 crore for FY23, down 25 percent YoY from Rs 9,470 crore, as per the firm's latest filing with the Registrar of Companies, shared by business intelligence platform Tofler.
The company's revenue from operations grew 22.5 percent to Rs 5,518.1 crore for the year, from Rs 4,504.7 crore in FY23.
Net profit saw a modest 6 percent increase to Rs 1,424.9 crore in FY24, from Rs 1,342.5 crore in FY23.
Profit from continuing operations increased by 60 percent YoY to Rs 1,294.4 crore for FY24, from Rs 811.3 crore in FY23. Meanwhile, the net profit from discontinued operations fell by 76 percent YoY to Rs 130.5 crore.
The discontinued operations include the results of Google's IT business, which was transferred to Google IT Services India Private Limited on June 30, 2023. The unit provided IT services to Google's group companies. The company had filed an application for the demerger of its IT business with the National Company Law Tribunal (NCLT) during the financial year 2020-21. NCLT approved this scheme of arrangement on May 25, 2023.
The gross advertising revenue grew to Rs 31,221 crore for the financial year, a 11.3 percent increase YoY from Rs 28,040 crore in the past year. The net advertising sales were at Rs 2,743.4 crore in FY24, up from Rs 2,323.1 crore in FY23.
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Google India is a third-party reseller of advertising space for the Google Ads (previously Google Adwords) programme and other Google advertising products and services in India. It is also engaged in providing IT-enabled services (ITES) to its group company.
The company paid Rs 28,267 crore to Google Asia Pacific for the purchase of ad space in FY24, reflecting an 10 percent increase from Rs 25,717.4 crore in FY23. It also paid Google Asia Pacific Rs 1,377.6 crore for purchase of service related to enterprise products in FY24, a 32.3 percent increase from Rs 1,041.3 crore in FY23.
The gross sales from enterprise products rose by 35 percent to Rs 1,551.9 crore for the year, from Rs 1,152.5 crore in FY23. Net sales grew 40 percent to Rs 155.4 crore in FY24, up from Rs 111.2 crore in FY23. This includes sales from its cloud computing, productivity and collaboration tools including Gmail and Google Docs.
The tech giant generated Rs 2,389.6 crore from providing ITES services during the financial year, up from Rs 2,070.4 crore in the previous year.
In terms of expenses, Google India saw its employee benefits expense increase by 10 percent to Rs 1,989.2 crore in FY24 from Rs 1,807.5 crore in FY23. This includes a 5 percent increase in salaries, bonuses and other allowances to Rs 1,299.6 crore for the year and a 23.7 percent rise in share-based payment expenses to Rs 548.9 crore.
Total expenses grew 16 percent to Rs 4,184.4 crore during the year, from Rs 3,609.4 crore in FY23.
With over a billion users, India is Google's largest market in terms of user base for its products. It is also a critical region for the future growth of the search giant, especially in its artificial intelligence efforts. The company also recently saw a change in the top management, with Google India country manager Sanjay Gupta elevated as the president for Asia Pacific region.
Roma Datta Chobey, who is currently serving as Google India's managing director - Digital Native Industries, Media and Entertainment and government, is leading the country's operations on an interim basis.
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