Facebook India’s services have reported a net profit of Rs 128 crore for 2020-21 on ad revenues of Rs 1,481 crore, regulatory filings showed. In the pandemic, Facebook’s gross ad revenue from the Indian market increased to Rs 9,326 crore, recording year-on-year growth of 41 per cent. The social media platform paid Rs 518 crore equalisation tax to the administration on the gross ad revenue, according to the filings to the Registrar of Companies (RoC).
Facebook works on a reseller model to purchase inventory from a global subsidiary and sell it to clients in India. These revenues are generated by displaying impression-based ads on Facebook, Instagram, Messenger, third-party affiliated websites, and mobile applications.