Google India profit stays almost flat at Rs 1,437 cr in FY25, revenue dips 3 pc

Google India registered a flat standalone profit of Rs 1,436.9 crore in the financial year ended March 2025 due to lower revenue and higher employee and tax expenses, according to a regulatory document shared by market intelligence firm Tofler.

Google India registered a flat standalone profit of Rs 1,436.9 crore in the financial year ended March 2025 due to lower revenue and higher employee and tax expenses, according to a regulatory document shared by market intelligence firm Tofler. The company logged a profit after tax of around Rs 1,425 crore in the preceding financial year. When contacted, a Google India spokesperson said that the financial numbers of 2025 were not comparable with those of 2024. ''Profit of Rs 1,425 crore for 2024 includes profit from the IT division. The IT division was demerged into a separate company (Google IT Services), so the 2025 GIPL profit numbers do not reflect IT division profit,'' the spokesperson said. The spokesperson further said that the net revenue for 2024 includes adjustment (addition) of Rs 229 crore, which pertains to the revenue of fiscal years 2016-17 to 2022-23 but reflected in 2024 based on the BAPA agreement signed with the Indian government. A note in the company's financial report said the company entered into a Bilateral Advance Pricing Agreement (BAPA) with the Central Board of Direct Taxes (CBDT) under Section 92CC of the Income Tax Act, 1961, covering transactions pertaining to the purchase of advertisement space and enterprise products from Google Asia Pacific (GAP) in March 2024. Under the terms of the BAPA, the company has agreed to the arm's length price in relation to the purchase of advertisement space and enterprise products from GAP for financial years 2016-17 to 2024-25. ''Pursuant to the BAPA in relation to the aforesaid transactions, the company has recognised the additional income of Rs 2,297 for 2016-17 to 2022-23 under the head revenue from operations (net) in its financial statement for the year ended March 31, 2024, and the additional income of Rs 2,297 has been offered to tax by the company. The revenue from operations of Google India declined by 3.2 per cent to Rs 5,340 crore during the reported fiscal from Rs 5,518 crore in FY24. Total revenue of Google India increased by 3.2 per cent to Rs 6,116 crore from Rs 5,921 crore a year ago, an account of ''other income'' of around Rs 776 crore. According to the analysis done by Tofler, the net margin of Google India also declined to 23.49 per cent from 24.06 per cent a year ago. ''The company's total expenses for the fiscal year were reported as Rs 4,136 crore,'' Tofler said. The company posted a 7.8 per cent increase in employee benefit expense to about Rs 2,146 crore in FY25 from Rs 1,989 crore in the year-ago period. The total tax expense of Google India during the reported fiscal increased by 22.6 per cent to around Rs 543 crore in FY25 from over Rs 442 crore in FY24.

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