IBM India reported a 12% drop in net profit to Rs 2,426 crore in the financial year 2018-19 on higher taxes, according to regulatory filings sourced by Tofler. The company reported a net profit of Rs 2,754 crore in the previous fiscal.
The technology major reported more than a 2% decline in revenue in the last fiscal to Rs 27,279 crore.
The computer hardware and software major reported its total expenses for the financial year at Rs 23,886 crore.
India has been one of the key markets for IBM in South Asia and its offices across the country support the company globally with a significant talent base. India is already the biggest resource for IBM, the world’s largest computer services company, with more than 1,00,000 people building solutions, products for its customers globally and in India.
In India, IBM is among the top vendors for local IT contracts with and receives a significant chunk of the government contracts.
Analysts said IBM has been taking certain futuristic bets to transform the company digitally and that might result in short term impact. The company has been investing heavily into AI, IP and repackaging some of the products.
The country contributed majorly to the technology major’s number of patents. IBM reported early this year that it received 9100 patents in 2018 and India emerged the second-highest contributor with 800 patents.
IBM India’s revenue for the financial year 2017-18 dropped by nearly 14% in revenue to Rs 27,887 crore.