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Facebook India Sees Profit Surge by 43%, Reaches Rs 505 Crore in FY24

• ByStartupStory     |    November 4, 2024

Facebook India has reported a significant 43% increase in profit, reaching Rs 504.9 crore for the fiscal year ending March 2024. Although the social media giant’s Indian subsidiary did not achieve double-digit revenue growth, its profits soared past the Rs 500 crore mark. The company’s annual financial statement, filed with the Registrar of Companies, reveals steady revenue growth alongside effective expense management.

Revenue and Operational Performance

Facebook India’s revenue from operations saw a 9.3% increase, rising to Rs 3,034.8 crore in FY24 from Rs 2,775.7 crore in FY23. As a wholly-owned subsidiary of Meta Platforms Inc., Facebook India generates revenue primarily from digital advertising and support services, which it provides to its California-based parent company. However, non-operating income experienced a 25% drop to Rs 28.95 crore, bringing Facebook India’s total revenue for FY24 to Rs 3,063.7 crore.

Controlled Expenses and Key Cost Adjustments

While the company maintained controlled growth in overall expenses—up just 2.4% to Rs 2,349.6 crore—it saw notable shifts within specific categories. The largest expense segment, listed as “other expenses,” remained stable at Rs 1,435.3 crore. Employee benefit expenses increased by 7.8%, reaching Rs 476.1 crore, reflecting a focus on talent acquisition and retention.

Interestingly, Facebook India reported a 10.8% reduction in depreciation and amortization costs, totaling Rs 271.3 crore in FY24, down from Rs 304.2 crore in the previous fiscal year. However, legal charges surged by 52.1% to Rs 166.7 crore, indicating heightened legal engagement in the Indian market. Other miscellaneous expenses dropped by 32% to Rs 463.1 crore, representing 19.71% of overall expenses.

Market Implications and Future Prospects

The significant profit boost highlights Facebook India’s robust financial health in an otherwise challenging market environment, underscoring the dominance of the Meta and Alphabet (Google) duo in India’s digital advertising landscape. This dominance has reportedly created an uphill battle for local competitors, who continue to struggle to secure a larger share of the digital ad spend.

 

As Facebook India achieves cost optimization, industry analysts speculate that the company may redirect resources towards high-visibility initiatives, potentially focusing on sustainability. Big-ticket acquisitions, however, may face regulatory scrutiny due to Meta’s influential market position.

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