Facebook India has reported a profit increase of 43% for the fiscal year ending March 2024, surpassing the Rs 500 crore mark, despite not achieving double-digit growth in year-on-year revenue. The company’s revenue from operations rose by 9.3%, reaching Rs 3,034.8 crore, compared to Rs 2,775.7 crore in the previous fiscal year, according to its annual financial statement submitted to the Registrar of Companies.
Being a wholly-owned subsidiary of Meta Platforms Inc., Facebook India generates income primarily from digital advertising and support services for its parent company based in California. This revenue growth has largely been driven by these two segments, although non-operating income saw a decline of 25%, dropping to Rs 28.95 crore. Total revenue for FY24 stood at Rs 3,063.7 crore.
In terms of expenses, Facebook India managed to keep overall growth to a modest 2.4%, totalling Rs 2,349.6 crore. The largest expenditure category was "other expenses," which remained stable at Rs 1,435.3 crore. Employee benefit expenses increased by 7.8%, reaching Rs 476.1 crore.
Significantly, depreciation and amortization costs fell by 10.8% to Rs 271.3 crore, down from Rs 304.2 crore in FY23. Conversely, legal expenses surged by 52.1% to Rs 166.7 crore, while other miscellaneous expenses decreased by 32% to Rs 463.1 crore, making up 19.71% of total expenses.
At the end of FY24, Facebook India reported a profit after tax of Rs 504.9 crore, marking a notable growth of 43% from the previous year.
The concept of management slack—referring to costs that organizations accumulate during prosperous times and cut first when conditions change—appears to be less viable for Facebook India.
The company’s profitable business model leaves little room for excess costs, indicating a shift towards efficiency. As a result, we can expect to see significant initiatives, particularly in sustainability, as the firm navigates potential scrutiny over acquisitions that could be perceived as an abuse of its market dominance.
These financial figures further emphasize the dominant position held by Meta and Alphabet in India’s digital ecosystem, effectively stifling local competitors' attempts to capture a larger share of digital spending, despite their subpar service offerings. For now, smaller players remain overshadowed by these two tech giants, a trend that seems likely to persist in the foreseeable future.
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