Computer-maker Dell on Wednesday posted a nearly three-fold increase in net income to $945 million for the first quarter ended March 31, 2011, boosted by 28 per cent growth in the Indian market.The company's net income grew to $945 million in Q1, FY'12, from $341 million in the same period a year ago, Dell said in a statement.
Revenue, however, grew just 1 per cent to $15.01 billion in the reporting period, compared to $14.87 billion in Q1, FY'11.
"We're off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving," Dell Chairman and Chief Executive Officer Michael Dell said.
Revenue from growth markets (which excludes the US, Canada, Western Europe and Japan) grew 17 per cent and represented 27 per cent of total company revenue, the statement said.
Revenue from BRIC countries grew 18 per cent, with India up 28 per cent and China up 22 per cent. Revenue from the Asia-Pacific and Japan (APJ) region increased 15 per cent in Q1, FY'12, hitting USD 3 billion, the statement
said.
While small and medium business revenue grew by 22 per cent in India, consumer business and large enterprises also witnessed solid growth in the Indian market.
Globally, Dell's large enterprise unit recorded 5 per cent growth during the reporting quarter compared to the year ago period.
However, its public revenue unit's revenue declined 2 per cent on weaker spending on desktop and laptop products.
Small and medium business revenue increased by 7 per cent, a two-year high driven by strong demand across all products and services, Dell said.
Consumer revenue was down by 7 per cent as demand was softer than expected, it added.
Dell said it expects mid-single digit revenue growth in the second quarter, a sequential seasonal growth of 2-3 per cent.
Public business is expected to benefit from stronger spending among state and local governments and education customers, while small and medium business and consumer businesses may experience above average seasonality, it said.
"Dell's updated outlook for fiscal 2012 includes revenue growth of 5-9 per cent and an increase in non-GAAP operating income growth to 12-18 per cent," it said.
