Amazon Internet Services’ makes profit\, posts ₹1\,235.4 crore revenue

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Amazon Internet Services’ makes profit, posts ₹1,235.4 crore revenue

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Interestingly in both the entities of Amazon, there was a delay in provident fund remittances for the current financial year.

Two technology entities of the e-commerce giant Amazon have posted profits in India, where it competes with Google, Microsoft and Alibaba in a battle to dominate cloud computing services.

Amazon Internet Services Private Limited (AISPL), an Indian subsidiary of Amazon that undertakes the resale and marketing of AWS Cloud services in India has made a profit of ₹28.5 crore in the financial year 2017-2018 compared to losses of ₹10.90 crore the previous year. AISPL posted a total revenue of ₹1,235.4 crore this financial year compared to ₹411.1 crore last year, according to the regulatory documents filed by Amazon, which were sourced from business intelligence platform Paper.vc.

“The sales growth primarily reflects increased custom usage of cloud-related services, partially offset by pricing changes,” said Amazon in the regulatory documents. This year the revenue from cloud-related services is ₹1,040 crore compared to ₹345.3 crore the previous year.

The company made an expenditure of ₹1,172.90 crore compared to ₹417.70 crore last year. This includes the ‘employee benefit expense’ which has doubled to ₹212.7 crore since last year.

Amazon Data Services

Amazon Data Services India Private Limited (ADSIPL), another arm of Amazon, made a profit of ₹87.9 crore this financial year compared to ₹22.1 crore last year. ADSIPL posted a total revenue of ₹ 956.6 crore compared to ₹243.3 crore last year.

“The company’s revenue has grown by almost 300% from last year. We continue to contract more capacity at better terms,” said Amazon in the regulatory documents.

Interestingly in both the entities of Amazon, there was a delay in provident fund remittances for the current financial year. This was attributed to the need for “seeding Aadhaar with every PF account.” “There was a delay from few employees to provide Aadhaar on time...We have made it mandatory for new hires to provide Aadhaar number,” said Amazon in the regulatory documents.

The India public cloud services revenue is projected to grow 37.5% in 2018 to total $2.5 billion, up from $1.8 billion in 2017, according to research firm Gartner, Inc. By 2020, this figure is expected to cross $4 billion, according to analysts.