Microsoft India's FY23 profit increases by 30% to Rs. 648cr
Microsoft India has seen a remarkable 30.2% year-on-year growth in net profit for the fiscal year ending March 30, thanks to the increased demand for its software and services during the pandemic, Moneycontrol reported. The company's net profit reached Rs. 648.67 crore, while consolidated revenue for FY23 hit Rs. 19,353.79 crore, a 39% YoY increase from Rs. 13,922 crore in FY22.
Revenue breakdown: products and services
The revenue generated by Microsoft India comes from two main sources - products and services. Products include operating systems, productivity apps, server applications, business solutions, management tools, software development tools, and video games. Services include cloud-based solutions like Microsoft Office 365, Microsoft Azure, Microsoft Dynamics 365, and Xbox Live, as well as solution support and consulting services. Product sales brought in Rs. 4,508.33 crore, while service revenue reached Rs. 13,103 crore.
Reduced advertising expenses
Interestingly, Microsoft India's advertising promotional expenses dropped by 14.72% YoY to Rs. 3,720 crore. This decrease in advertising costs could be due to the higher demand for Microsoft's products and services during the pandemic, which may have reduced the need for promotional efforts to boost sales.
CEO Satya Nadella's outlook on India
During a visit to India in January, Microsoft CEO Satya Nadella expressed optimism about India's progress in developing and adopting large-scale digital public infrastructure and applications such as UPI, DigiLocker, and Aadhaar. Nadella outlined some key factors that would drive economic growth in India. These factors include migrating to the cloud, unifying data and applying AI models, empowering fusion teams of tech and non-tech domain experts, and re-energizing workforces.
