Buoyed by an increase in its online advertising income, Google Inc has recorded an increase of 17% in its net profit, which stood at $2.3 billion for the three month period ended March 2011.

During the same period last year, internet search giant registered a net profit of $1.96 billion.

The company's revenue grew by 27% to $8.58 billion during the primary quarter, which ended on March 31, 2011 as compared to $6.77 billion during the same period of 2010.

Google has attributed growth in its quarterly incomes to revenue yielded by paid clicks on its search advertisements that comprise clicks linked to advertisements served on Google's websites and the sites of its associates.

Google CFO Patrick Pichette stated, "We had a great quarter with 27% year-over-year revenue growth."

"These results demonstrate the value of search and search ads to our users and customers, as well as the extraordinary potential of areas like display and mobile. It is clear that our past investments have been crucial to our success today, which is why we continue to invest for the long term," Patrick added.

In the opening quarter of 2011, Google-owned sites yeilded revenues of $5.88 billion.

But, augmented marketing expenditure together with the higher labor costs pushed the company's operating expenditures by 54%, cutting down its operating margin by 4 points to 33%.

In a declaration, the company said that it appointed over 1,900 people during January to March period, which takes the total number of employees to 26,316 allover the world.

Google stated that aggregate paid clicks that comprise clicks related to advertisements served on its websites and the sites of its partners, zoomed 18% as against the same period of 2010.