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Apple India revenue nears Rs 50,000 crore, sales surge 48%

Apple’s business in India came close to reaching revenue of Rs 50,000 crore, with sales increasing 48 percent to Rs 49,321 crore, while the net profit surged 76 percent to Rs 2,229 crore in the financial year 2022-23.

This is the fastest growth in net profit for Apple in India in the last five years, report said in a report on October 29, citing information provided by the tech giant to the Registrar of Companies (RoC).

The growth can be attributed to a higher share of sales from new-generation devices, which have better profit margins, and cost reductions in components during the last fiscal year.

Moneycontrol could not independently verify the report.

The report comes barely a day after it was announced that Tata Group will start making iPhones in India for both the Indian market and for customers worldwide.

Tata becomes the first Indian company to manufacture iPhones within the country as Wistron Corporation agreed to sell one of its plants in the southern part of India to the Mumbai-based salt-to-software conglomerate.

At the start of 2023, Union Minister Piyush Goyal said Apple Inc was aiming for India to contribute around 25 percent of its total production, a significant increase from the present 5-7 percent.

In April, Apple achieved record sales of nearly $6 billion in India in the year ending in March, highlighting the growing significance of the Indian market for the US-based tech behemoth.

The financial daily quoted Mohit Yadav, the founder of AltInfo, a business intelligence firm, as saying that Apple had shown impressive financial prudence, with substantial increases in both its revenue and profits, indicating that the company had the potential for unlimited growth.

According to the documents filed with the RoC, a significant 94.6 percent of Apple India’s revenue came from selling products, while a smaller 5.4 percent comes from maintenance and services. Apple has not yet expanded its services business in India, even though it accounts for about 30 percent of its global sales.

The regulatory filings showed that Apple India’s outflows in foreign exchange for the import of stock in trade, spare parts, and capital goods had not decreased in FY23, despite the company’s efforts to scale up local assembly.

The foreign exchange outflow in the last fiscal year was up 2 percent at Rs 18,140 crore from the previous fiscal year (FY22). This suggests that while Apple is expanding its local assembly operations in India, there may still be a significant dependence on imported components and goods, contributing to foreign exchange expenditures. Moneycontrol

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