DQ Estimates Revenue (Rs Crore)
For the year 2016 to 2017 : 8,000
For the year 2017 to 2018: 9,075
Increase of 13%
Transformation efforts drove the full year Lenovo Group revenue back to growth and reached the highest level in 3 years; full-year Group revenue of US$45B, up 5%. The revenue traction can be attributed to the 3-wave strategy the company introduced at the beginning of the fiscal year 2017-18 and after a year’s strong execution, both its full-year revenue and operating profit before taxation returned back to growth, despite a highly competitive environment. During the fiscal quarter ended on March 31, 2018, the Group revenue continued to grow year-on-year for three consecutive quarters led by continued strength in PCSD and Data Center Groups. The first wave PC business continued to deliver solid profitability and cash flow to the Group, which provided a solid base to fuel the growth needs of the second wave strategy in Data Center and Mobile businesses and investment needs for the third wave strategy in Device + Cloud strategy.
Other highlights for the company globally during FY 18:
- FY18Q1 Lenovo rode the wave of healthy refreshed momentum in Japan as well as recovered channel efforts in North America to grow 11.3% year on year (which start including Fujitsu volume beginning in 2018).
- In FY 18 WW Lenovo is No.1 in PCs + tablets, while rank 2nd in PC market with share gain in AP/LA/EMEA, achieved double-digit YTY growth in AP and LA.
- In FY 18 Q1 AP market, Lenovo (including Fujitsu since FY18Q1) is the fastest growing PC or “Intelligent Devices” company and is currently number 1 in PCs + Tablets
- In FY 18, Lenovo secured the # 2 position in AP PCs with a market share of 17.2%; In AP Tablet segment Lenovo is at the #4 position with a market share of 8.3%, rank 4th in AP tablet market.
- The Data Centre Group is well positioned to provide the infrastructure for the smart IoT era and is becoming a growth engine for Lenovo. The group’s financial performance serves as tangible proof that the DCG strategy is yielding significant results: Q4 FY 1718 delivered a second consecutive quarter of double-digit year-on-year growth and achieved the highest revenue growth (+50%) since the IBM System x acquisition in 2014.
On the back of a strong global revival of Lenovo , India also saw strong uptick and growth across categories. For Smartphones, the Lenovo Mobile Business Group attained a market share of 6%. The other leading performance highlights of Lenovo India over FY 18:
- Lenovo has been on the path of profitable market share growth
- Lenovo India’s PC market share was 21.1%
- Lenovo is No 2 in PCSD and 1 in Tablets (The Tablet segment witnessed a record market share of 29.3%, closing in on the #1 position)
In all its a good year for Lenovo in India, even though it saw headwinds globally in the smartphone business, the other business areas are set to gain bigger traction in the year ahead.