TechSamvadDec 11, 2020 17:13:24 IST
Facebook India’s revenues grew by 43 percent year-on-year to about Rs 1,277.3 crore in 2019-20, while its net profit more than doubled to Rs 135.7 crore. Its total income was Rs 893.4 crore in the financial year ending 31 March 2019, according to Registrar of Companies filing, shared by market intelligence firm Tofler. The net profit of the company reportedly increased by over 107 percent to Rs 135.7 crore in FY20 (Financial Year 2020) as compared to Rs 65.3 crore in the preceding fiscal.
In November, Google had made a similar filing that showed its revenues from India had grown 34.8 percent to about Rs 5,593.8 crore in 2019-20 over the previous financial year. Its net profit was higher by about 23.9 percent at Rs 586.2 crore in FY20.
Facebook India acts as a non-exclusive reseller of advertising inventory to customers in India. It also provides IT/ITeS (Information Technology/ Information Technology enabled Services), marketing, and other support services to the Facebook group.
According to the filing, Facebook’s employee benefits expense grew 63.3 percent to Rs 299.3 crore in FY20 from Rs 183.2 crore in the preceding fiscal. The company paid an equalisation levy of Rs 369.5 crore in the fiscal under review as against a payment of Rs 118.2 crore in the fiscal ending March 2019.
The Indian government charges a 6 percent equalisation tax on gross payment received by global digital companies from Indian residents for online advertising. Google India paid an equalisation levy of Rs 611.1 crore in FY20.
India is among the biggest markets for Facebook, which operates its photo-sharing platform Instagram and messaging apps WhatsApp and Messenger, in the country. Around 2.5 billion people globally use Facebook’s family of apps daily, while there are over 10 million active advertisers across its services.