Meta India reported a robust financial performance for FY24, with net profit surging 43% year-on-year to ₹504.93 crore. The company’s revenue from operations increased by 9.3%, reaching ₹3,034.8 crore, compared to ₹2,775.7 crore in FY23. This growth was significantly fueled by a 24% jump in gross advertising revenue, which totaled ₹22,730.7 crore, up from ₹18,308 crore the previous year.
A pivotal factor in this financial upturn was the shift from a reseller agreement with its parent company, Meta Platforms Inc., to an operating license model that began in August 2022. This change enabled Meta India to take direct control over ad sales, resulting in substantial increases in royalty payments (which soared 95.1% to ₹17,887 crore) and infrastructure costs (which rose 89% to ₹2,922.2 crore). Despite these escalated expenses, net advertising revenue experienced an impressive 48.9% growth, reaching ₹1,817.5 crore.
Beyond advertising, Meta India also generates income from IT-enabled business process outsourcing (BPO) services, which accounted for ₹1,135.4 crore, albeit a slight decline from ₹1,251.1 crore in FY23. A new revenue stream emerged from design support services, contributing ₹81.9 crore in FY24, following a service agreement with Meta USA established in October 2023.
The total operational expenses for Meta India saw a modest 2% increase, totaling ₹2,349.6 crore, with employee benefits rising by 7.8% to ₹476.2 crore, reflecting ongoing investments in workforce expansion.
As India hosts over a billion users across Meta’s platforms, the country remains a key market for the company’s growth ambitions, particularly in digital advertising and AI initiatives. Sandhya Devanathan, Meta’s head for India, noted that India’s ad spending as a percentage of GDP is relatively low, suggesting significant growth potential in alignment with economic expansion and increasing digital penetration.
A focal point for Meta’s future strategy in India lies in business messaging, particularly via Click-to-WhatsApp ads, which have reportedly doubled in revenue over the past year. The rising trend of small businesses utilizing WhatsApp for customer engagement positions the app as a crucial tool for acquisition and communication. Meta recognizes India as a priority market for business messaging, indicating promising opportunities for further revenue generation in this sector.
Disclaimer: The financial figures and statements provided are based on the latest reports and are subject to change. For complete details and official disclosures, please refer to Meta India’s financial statements and press releases.
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