Facebook India Online Services profit jumps 43% to Rs 505 crore in FY24

Facebook India Online Services, a subsidiary of Meta Platforms Inc., reported a significant increase in profit for the financial year ending March 31, 2024.

The company posted a 43% rise in profit, reaching Rs 504.9 crore, compared to Rs 352.91 crore in FY23.

Despite this substantial profit jump, Facebook India’s revenue from operations grew at a moderate rate of 9.3%, amounting to Rs 3,034.8 crore, up from Rs 2,775.7 crore in the previous fiscal year.

Revenue composition and key business activities

Facebook India Online Services Private Limited derives its revenue mainly from selling advertising inventory and providing IT-enabled and design support services to its parent company, Meta Platforms Inc., based in California.

The primary drivers of revenue growth in FY24 were these two business streams. However, total non-operating income decreased by 25% to Rs 28.95 crore, bringing the overall revenue to Rs 3,063.7 crore for the year.

Controlled expense growth boosts profitability

Facebook India’s effective cost management played a crucial role in boosting profitability. The company reported an increase in total expenses of only 2.4%, totalling Rs 2,349.6 crore in FY24.

This included steady “other expenses” at Rs 1,435.3 crore and a 7.8% rise in employee benefits, which reached Rs 476.1 crore.

On the other hand, depreciation and amortization expenses dropped by 10.8% to Rs 271.3 crore from Rs 304.2 crore in FY23.

Legal expenses saw a significant jump of 52.1%, amounting to Rs 166.7 crore, while miscellaneous expenses decreased by 32% to Rs 463.1 crore.