Online retail firm Amazon nearly doubled revenue from its cloud and data-hosting units in India to Rs 4,131 crore for the year that ended March 2019, show documents filed with the Registrar of Companies. The units also posted a combined profit of Rs 189 crore in the same 12-month period, up 60% from the previous fiscal year.
Amazon Data Services India, which provides services such as web hosting and data storage, posted revenue of Rs 1,504 crore and a profit of Rs 117.9 crore. Amazon Internet Services, which acts as a reseller for Amazon Web Services (AWS), reported a profit of Rs 71.2 crore on revenue of Rs 2,627 crore.
The two units had in fiscal 2018 posted combined revenue of Rs 2,151 crore. The revenue growth in FY19 was in fact, slower that in the previous year, when the two businesses recorded a nearly threefold jump.
Despite the slowdown in growth, experts said Amazon was continuing its march towards earning $1 billion in web services revenue from India.
An analyst tracking the space, who spoke to ET on the condition of anonymity, said Amazon was currently the leader in providing cloud computing services to customers in India and its market share would be almost double that of its nearest competitor. Microsoft, Google and Alibaba are the other large global players in this space.
One of Amazon’s biggest customers in the country is the government and several of its departments. Marquee government initiatives such as Digital India, Skill India and the Smart Cities Mission are all powered by AWS, with the company offering hosting, analytics, artificial intelligence and machine learning services.
Globally, AWS drove $8.4 billion in sales in the quarter that ended June 2019, making up 13% of Amazon’s total revenue. With $2.12 billion in operating income, AWS also drove 52% of the US online retail giant’s total operating income during the same quarter.