Amazon Internet Services India falls into losses in FY20 even as revenue swells up 58 percent

Amazon Internet Services, Amazon’s subsidiary, which undertakes the resale and marketing of Amazon Web Services’ (AWS) cloud services in India, has shown a net loss of Rs 20 lakh for the financial year ended 31 March 2020 reported business intelligence platform Tofler. The company had posted profits in the previous FYs including Rs 71.1 crore in FY19, Rs 28.5 crore in FY18, Rs 176.2 crore in FY17, and Rs 3.7 crore in FY16. On the other hand, the revenues reported for FY20 stood at Rs 4,215.9 crore, up 58 percent from Rs 2,740 crore in the preceding financial year even as expenses also increased 60.5 percent to Rs 4,178 crore in FY20 from Rs 2,602 crore in FY19. Amazon Internet Services saw revenue from continuing operations jump to Rs 4,161.6 crore from Rs 2,637.2 crore. The revenue from cloud-related services stood at Rs 4,005.5 crore, while the company earned Rs 156.1 crore from marketing services. The regulatory filing from Tofler report that the employee benefit expenses increased 49 percent from Rs 321.2 crore to Rs 480 crore while finance costs saw a jump of 9,000 percent from Rs 40 lakh to Rs 36.5 crore. Depreciation and amortization expenses were also up 101 percent from Rs 23.1 crore to Rs 46.6 crore during the said period. The majority share of expenses belonged to other expenses, which increased 60 percent from Rs 2,257.7 crore to Rs 3,615 crore, out of which reseller fees constituted the majority component increasing 52 percent from Rs 1,946 crore to Rs 2,966 crore. Ad and sales promotion costs were Rs 43.5 crore while traveling and conveyance costs were Rs 68.6 crore for FY20. In November, AWS announced that it will be investing about $2.77 billion (approximately Rs 20,761 crore) to open a cloud region in Hyderabad by mid-2022. (Also read: Amazon Pay India's Loss Widens To Rs 1,868.5 crore In Financial Year 2020 Reports Tofler)