Amazon Internet Services revenue jumps 58% to Rs 4161.6 cr in FY20

The revenue growth is primarily attributed to an increased usage of cloud and other related services by existing and new customers in India Amazon Internet Services Private Limited (AISPL), an Indian subsidiary of the Amazon Group that undertakes the resale and marketing

by Team PITCH
Published - December 18, 2020
2 minutes To Read
Amazon Internet Services revenue jumps 58% to Rs 4161.6 cr in FY20

The revenue growth is primarily attributed to an increased usage of cloud and other related services by existing and new customers in India Amazon Internet Services Private Limited (AISPL), an Indian subsidiary of the Amazon Group that undertakes the resale and marketing of AWS Cloud services in India, has seen a 58% jump in total revenue at Rs 4161.6 crore for the fiscal ended 31st March 2020 compared to Rs 2637.2 crore in the previous fiscal. The revenue growth in AISPL is primarily attributable to an increased usage of cloud and other related services by existing and new customers in India. AISPL is a wholly-owned subsidiary of Amazon Asia-Pacific Resources Private Limited. According to financial data accessed by business intelligence platform Tofler, expenditure (excluding depreciation) jumped to Rs 4131.7 crore from Rs 2579.3 crore. The company posted a net loss of Rs 20 lakh as opposed to a net profit of Rs 71.1 crore. The company also reported a profit before tax of Rs 37.6 crore as compared to last year's profit before tax of Rs 137.8 crore. Revenue from cloud-related services jumped to Rs 4005.5 crore from Rs 2483.9 crore. Revenue from marketing services stood at Rs 156.1 crore compared to Rs 153.3 crore. The company noted that cloud-related services consist of amounts earned from sales of compute, storage, database, and other cloud-related service offerings (including training) for start-ups, enterprises, government agencies, and academic institutions in India. Marketing services consists of amounts earned from general marketing and promotional services provided to Amazon Web Services, Inc., a group company. The company's revenue from India stood at Rs 4004.2 crore compared to Rs 2483.9 crore. The USA market contributed Rs 157.4 crore revenue to the company compared to Rs 153.3 crore. Total employee benefits expense increased to Rs 480.1 crore from Rs 321.2 crore. Advertising and sales promotion expense stood at Rs 43.5 crore as against Rs 30.7 crore.

According to a recent news report, Amazon Web Services (AWS) is witnessing strong uptake of its services from startups in the country across segments like fintech, healthcare, e-commerce, and logistics. AWS, which competes with players like Microsoft and Google in the cloud computing segment, is planning to invest about Rs 20,761 crore in setting up its second data centre region in India in Telangana that will be operational by mid-2022. AWS customers in India include Ashok Leyland, Aditya Birla Capital, Axis Bank, Bajaj Capital, ClearTax, Dream11, Druva, Edelweiss, Edunext, Extramarks, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, Quantela, RBL Bank, redBus, Sharda University, Swiggy, Tata Sky, YuppTV, Zerodha, and others. Government agencies, educational institutions, and non-profits including Common Service Centres (CSCs) are also using AWS' services.

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