Google India has reported impressive financial results for the fiscal year ending March 2024 (FY24), showcasing a 26% year-on-year revenue increase, reaching ₹5,921.1 crore. This growth was primarily fueled by a significant rise in digital advertising and enterprise product sales.
Key Financial Highlights:
- Revenue Performance:
- Revenue from operations grew by 22.5%, reaching ₹5,518.1 crore, compared to ₹4,504.7 crore in FY23.
- When accounting for income from discontinued operations, total income for the year amounted to ₹7,097 crore, which represents a 25% decline from ₹9,470 crore in FY23. This drop is attributed to the transfer of Google India’s IT services unit to Google IT Services India Private Limited.
- Net Profit:
- The company’s net profit saw a modest increase of 6%, totaling ₹1,424.9 crore. Notably, profit from continuing operations surged by 60%, climbing to ₹1,294.4 crore, while profit from discontinued operations decreased by 76% to ₹130.5 crore.
- Advertising Revenue:
- Google India’s gross advertising revenue increased by 11.3% to ₹31,221 crore, with net advertising sales reaching ₹2,743.4 crore, up from ₹2,323.1 crore in the previous fiscal year.
- Enterprise Products:
- Revenue from enterprise products, including cloud computing and productivity tools like Google Workspace, saw impressive growth. Gross sales rose by 35% to ₹1,551.9 crore, while net sales jumped 40% to ₹155.4 crore.
- IT-Enabled Services:
- Revenue from IT-enabled services, which support Google’s global operations, increased to ₹2,389.6 crore, up from ₹2,070.4 crore in FY23. This segment includes a variety of technical and administrative support functions for Google’s group companies, although the transfer of the IT services unit marked a significant strategic shift.
Expenditure Analysis:
- Google India’s total expenses rose by 16% to ₹4,184.4 crore, up from ₹3,609.4 crore in FY23.
- Employee benefits expenses increased by 10% to ₹1,989.2 crore, driven by a 5% rise in salaries, bonuses, and allowances, which totaled ₹1,299.6 crore.
- The company also incurred higher costs for ad space purchases, totaling ₹28,267 crore, reflecting a 10% increase from the previous year.
Leadership Changes:
Amidst its expansion strategy in India, Google has made leadership changes to enhance regional growth. Sanjay Gupta has been promoted to President of Google Asia Pacific, while Roma Datta Chobey, the Managing Director of Digital Native Industries, Media and Entertainment, and Government sectors, will lead Google India in an interim capacity.
This strategic repositioning, coupled with strong financial performance, underscores Google India’s commitment to tapping into the growing digital landscape of the country, particularly in areas like artificial intelligence and cloud computing.
Disclaimer: The information provided in this report is for informational purposes only and does not constitute financial advice or recommendations. All financial data and statements are based on publicly available information as of the date of this report. While efforts have been made to ensure the accuracy of the information, Google India and its associated entities assume no responsibility for errors or omissions, or for any actions taken based on the contents herein. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.
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