The Indian subsidiary of technology giant Google reported a 34.8% year-on-year increase in turnover for the financial year 2019-20 at Rs 5,384 crore.
The company clocked a net profit of Rs 586.2 crore for the year ended March 31, 2020, a 23.9% increase compared to the same period last year, according to regulatory filings.
The Indian entity’s total expenses rose 30.4% for FY20 to Rs 4,455 crore, even as its employee benefit expense, at Rs 2,100, showed a 43.8% increase from last year.
Google India provides information technology (IT) and IT-enabled services (ITeS) to its group companies and is also the third party reseller of Google’s advertising services in India. As per the filings, revenue from its advertising business made up 27% of the turnover, while IT and ITeS contributed 41% and 32%, respectively.
“The outbreak of the novel coronavirus is leading to a global market disruption. The company expects to recover the carrying amount of all its assets as at March 31, 2020 and no adjustments are required as at March 31, 2020 in relation to Covid-19, considering various internal and external information up to the date of approval of these financial statements,” the company said in its filings.
During the financial year, it provided loans worth Rs 190 crore to Google Connect Services India. Additionally, the filings indicate that the dues related to income tax, interest and penalty on account of dispute amount to Rs 6,127 crore, of which Rs 1,952 crore was paid under protest.
Earlier this year, Google CEO Sundar Pichai said the firm would invest $10 billion in India over the next five to seven years through Google for Indian Digitalization Fund, to boost digital inclusion in the country. Of this, $4.5 billion was invested in Reliance Industry’s Jio Platforms, with a plan to develop entry-level smartphones for the masses.