Chennai-headquartered SaaS unicorn Zoho has reported a 43.3% increase in profit from Rs 1,918 crore in FY21 to Rs 2,749 crore in FY22. At the same time, the company’s revenue from operations also surged by 28.3% to Rs 6,711 crore in FY22 from Rs 5,230 crore in FY21.
According to the company’s annual filings with the Registrar of Companies (RoC), Zoho One, formed around 52.6% of the total collections, which grew 62% to Rs 3,533 crore in the last fiscal year from Rs 2,181 crore in FY21.
Revenue from enterprise IT management software grew marginally by 4.1% to Rs 3,158 crore in FY22 from Rs 3,033 crore in FY21. This vertical was the largest revenue generator, followed by Zoho One in FY21.
The company also said that the income from software updates and maintenance and support licence also contributed Rs 20 crore to operating revenue during FY22.
Employee benefit expenditure turned out to be the largest cost centre for the company, accounting for 51.1% of the total expenditure. This cost surged 5.9% to Rs 1,827 crore in FY22 from Rs 1,725 crore in FY21. Zoho’s advertising promotional costs increased 2X to Rs 715 crore in FY22 from Rs 335 crore in FY21.
Its legal and professional costs increased 23.2% to Rs 175 crore in FY22. It also incurred Rs 125 crore on information technology, which pushed its overall cost by 18% to Rs 3,572 crore during FY22.
On the ratios side, Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins for Zoho remained positive with 31.27% and 43.38%, respectively.