Google India reports 79.4% jump in FY22 gross ad sales

According to financial information received by business intelligence platform Tofler, tech giant Google India's gross sales from the sale of advertisement space increased 21.36% to Rs 13,886.7 crore for the fiscal year ending March 31, 2021, from Rs 11,442.3 crore in the prior year.

In comparison to the prior fiscal year, the company paid Google Asia Pacific Pte Ltd. Rs 12,262.2 crore for the purchase of advertising space during the current fiscal year.

In India, Google is a third-party reseller of Google Adwords advertising space as well as other Google advertising products and services to companies looking to advertise their goods and services to consumers and business users online.

In order to increase internet penetration in India, the business has invested $4.5 billion in Reliance's Jio Platforms and teamed up with Reliance Jio to jointly launch the entry-level smartphone JioPhone Next. Additionally, it has promised to invest $10 billion in India over the next five to seven years.

On a net basis, the company disclosed revenue from the sale of enterprise goods and advertising space, as well as related direct sales costs. From 1372.1 to 1624.5 crores, the company's net revenue from the sale of advertising space climbed by 18.39%.

Also, the business product sales revenue increased 33% to Rs 606.6 crore from Rs 457.6 crore. The company paid Google Asia 540 crore rupees Pacific Pte Ltd. for purchase of services relating to enterprise products, compared to Rs 402.7 crore in the previous fiscal.

Revenue from providing information technology and related services fell 5.17% for the company, to Rs 1652.7 crore from Rs 1743.5 crore. Information technology service revenue increased 32% to Rs 2913.3 crore from Rs 2213.1 crore.

The operational revenue for Google India increased by 16.2% to Rs 6257.1 crore from Rs 5384.7 crore. IT services contributed 46.56% of the company's income, which was then followed by advertising (27.03%) and IT enabled services (26.41%).

From Rs. 5603.3 crore to Rs. 6386.2 crore, the total income increased by 14%. From Rs. 4465 crore to Rs. 5297.4 crore, spending jumped by 19%. In comparison to the previous year, total employee benefit costs increased by 54% to Rs 3230.8 crore. Advertising promotional expenses reduced by 69% to Rs 132.8 crore from Rs 427.7 crore a year ago.

Trade receivables for the company increased 7.2%, from Rs 3634.8 crore to Rs 3896.8 crore. It was mentioned that trade receivables typically have maturities of 0 to 90 days and are not interest-bearing. As of March 2021, provision for doubtful debts on trade receivables was recognised at Rs. 134.4 crore as opposed to Rs. 132.6 crore.

The firm that houses the digital payment network Google Pay, Google India Digital Services, has reported a 2% increase in FY21 revenue to Rs 1467 crore from Rs 1498 crore in the prior year. The business's net profit increased by 61%, from Rs 33 crore to Rs 53 crore.

For the fiscal year that concluded on March 31, 2021, Google Payment India generated operational revenue of Rs 14.75 crore as opposed to Rs 4.69 crore the year before. The company, a subsidiary of Google USA, specialises in offering Google Asia Pacific Pte. business support services. Google Ireland Limited and Limited (GAP) (GIL). It had a net profit of Rs. 1.41 crore for the fiscal year as opposed to Rs. 45.65 lakh