Global tech giant Microsoft’s India business has reported a 38.44 percent growth in net profit on a year-on-year basis for the fiscal year ended March 30, driven by the continued uptick in cloud adoption and implementation and experimentation around artificial intelligence.
Profit for the period stood at Rs 898 crore, against Rs 648.67 crore in FY23. Revenue for FY24 stood at Rs 22,891.58 crore, growing 18.28 percent YoY, up from Rs 19,353.79 crore in FY23, 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 3,854.70 crore.
Revenue from services came in at Rs 16,530.88 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 13.77 percent YoY to Rs 320.80 crore.
Betting big on India
Microsoft remains bullish on the India opportunity coming with the significant developments happening in artificial intelligence globally, as the country is home to nearly 16 percent of global AI talent.
During his annual India visit in February, Microsoft's Chairman and Chief Executive Satya Nadella said that this is the first time India's fast growth in artificial intelligence (AI) is bridging its gap with the rest of world.
Nadella had highlighted four big shifts in the world of technology since the time he joined the industry. These include PCs, client servers, web and of course mobile and cloud.
Referring to the current AI revolution, Nadella said: “This is first time I feel what is happening in India and the rest of the world there is no gap. If anything, the use cases here are so unique and paving their own path.”
"We don't just talk about AI, we're scaling AI," he added.
He also said India is one of the fastest growing markets in the world and the technology giant is closely tracking the percentage of AI contribution to its GDP growth, which is targeted to reach $5 trillion by 2025.
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