With sales up 48% to Rs 49,321 crore and a 76% increase in net profit to Rs 2,229 crore in the fiscal year 2022–2023, Apple’s company in India almost reached the 50,000 crore mark.
According to data supplied by the tech giant to the Registrar of Companies (RoC), the Economic Times reported on October 29 that Apple’s net profit growth in India has been at its quickest pace in the previous five years.
The Economic Times has quoted experts as stating that the growth can be ascribed to cost reductions in components during the last fiscal year and a bigger share of sales from new-generation devices, which have stronger profit margins.
Tata will create the iPhone
The news that Tata Group will begin producing iPhones in India for the Indian market and global consumers was announced just a day ago.
After Wistron Corporation decided to sell one of its units in the southern portion of India to the Mumbai-based salt-to-software conglomerate, Tata became the first Indian company to make iPhones domestically.
Union Minister Piyush Goyal stated at the beginning of 2023 that Apple Inc. hoped for India to contribute about 25% of its total production, a substantial rise from the current 5-7 percent.
With record sales of about $6 billion in India for the year that ended in March, Apple set a record in April, demonstrating the growing importance of the Indian market for the US-based tech giant.
The founder of the business intelligence firm AltInfo, Mohit Yadav, was quoted in the Financial Daily as claiming that Apple had demonstrated excellent financial restraint, with significant gains in both its revenue and profits, suggesting that the company had the potential for limitless expansion.
Documents submitted to the RoC reveal that sales of items accounted for a substantial 94.6 percent of Apple India’s revenue, with maintenance and services accounting for a smaller 5.4%. Even though services make up over 30% of Apple’s global sales, the company has yet to grow in India.
Despite the company’s efforts to increase local assembly, Apple India’s outflows of foreign money to import capital goods, spare parts, and stock in trade were relatively high in FY23, according to regulatory filings.
Compared to the previous fiscal year (FY22), the foreign exchange outflow for the most recent fiscal year increased by 2% to Rs 18,140 crore. This implies that even while Apple is growing its in-house assembly operations in India, there might still be a high reliance on imported items and components, which raises the possibility of foreign exchange expenses.
