Alphabet Inc. (GOOG) has reported a 28.98 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $5,426 million, or $7.73 a share in the quarter, compared with $4,207 million, or $6.02 a share for the same period last year.

Revenue during the quarter grew 22.18 percent to $24,750 million from $20,257 million in the previous year period. Gross margin for the quarter contracted 182 basis points over the previous year period to 60.42 percent. Total expenses were 73.46 percent of quarterly revenues, down from 73.63 percent for the same period last year. This has led to an improvement of 17 basis points in operating margin to 26.54 percent.

Operating income for the quarter was $6,568 million, compared with $5,342 million in the previous year period.

"Our excellent results represent a terrific start to 2017, with revenues up 22% versus the first quarter of 2016 and 24% on a constant currency basis. We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet," said Ruth Porat, chief financial officer of Alphabet.

The company has spent $2,851 million cash to meet investing activities during the quarter as against cash outgo of $6,245 million in the last year period. It has incurred capital expenditure of $2,467 million on net basis during the quarter, up 1.61 percent or $39 million from year ago period.

The company has spent $1,674 million cash to carry out financing activities during the quarter as against cash outgo of $2,911 million in the last year period.

Cash and cash equivalents stood at stood at $18,132 million as at Mar. 31, 2017.