Airbnb profit rises to ₹5 crore in FY20

Airbnb’s revenue from operations more than doubled to ₹68.67 crore for FY20 compared to ₹32.35 crore in the previous fiscal. However, its expenses have zoomed up to ₹62.52 crore for the fiscal which was 112 per cent higher than the previous fiscal. It has reported a net profit of ₹5.05 crore for FY20 compared to ₹1.7 crore profit in the previous fiscal.

Airbnb’s marketing expenses for the fiscal stood at a whopping ₹35.92 crore compared to ₹1.46 crore in the previous fiscal and its financial costs went up to ₹1 crore from ₹32 lakh.

Covid impact

In the last month of FY20, the impact of Covid-19 had already started impacting India. In the last week of March, the Indian government had enforced a country-wide lockdown to curb the spread of the virus. The company in its results have said that work-from-home was enabled to majority of the employees to work remotely.

“The management has assessed the impact of Covid-19 pandemic on the financial statements, business operations, liquidity position, cash flow up to the date of approval of these financial statements and has concluded that no material adjustments are required in the carrying amount of assets and liabilities as at March 31, 2020. The impact of the Covid 19 may be different from that estimated as at the date of approval of these financial statements and the company will continue to closely monitor any material changes to future economic conditions,” it said in regulatory filings.

In a 2018 interview, a senior Airbnb executive had told BusinessLine that India is one of the top 3 strategic markets for the company.