More power to do more

With the hybrid work momentum taking off strongly in the region, the company’s Client Solutions Group’s revenue was up 45 percent YoY

Revenue

Rs 233,494 mn

You can’t go wrong if you are Dell and you have a year where most people are working on devices, from homes, from hybrid workplaces and in virtual collaboration like never before. You also can’t go wrong if enterprises are asking for more power to fuel their digital transformation projects.

Right. Dell Technologies said India brought in quantum growth for the company globally during the fiscal ended in February 2022. As reported in media, Dell saw 61 percent growth in Q4 alone in India and the company’s business in the country grew 64 percent year-on-year in FY2022. The revenue of the Asia Pacific and Japan (APJ) region grew 34 percent. Dell’s Infrastructure Solutions Group’s revenue for the year was up 21 percent YoY. With the hybrid work momentum taking off strongly in the region, the company’s Client Solutions Group’s revenue was up 45 percent YoY. The region also witnessed strong demand for notebooks and desktops.

On a global level, Dell Technologies’ financial results for its fiscal 2023 third quarter show that revenue was $24.7 billion, down six percent while recurring revenue for the third quarter was approximately $5.4 billion, up 11 percent year-over-year. Here, we see that the Infrastructure Solutions Group delivered record third-quarter revenue of $9.6 billion, up 12 percent year-over-year. Also, Servers and networking revenue was $5.2 billion, up 14 percent while Storage revenue was $4.4 billion, up 11 percent. Its Client Solutions Group showed a third quarter revenue of $13.8 billion, down 17 percent year-over-year. Its Commercial revenue was $10.7 billion, down 13 percent and Consumer revenue was $3 billion, down 29 percent.

Client solutions group and PC – as seen in consistent quarters – have been the main pivots of growth for Dell. But the tidings get tough as main players like Dell and HP also report a dip in shipments. Shipments of Dell Technologies fell the sharpest at 40.5 percent year-over-year, with HP Inc’s shipments falling 25.9 percent- with the Indian PC market falling about 11 percent in the third quarter (As per IDC).

“We executed Q3 with focus and delivered strong operating results, successfully navigating the challenging environment we highlighted in our Q2 earnings call. With the industry’s largest direct sales force and our technology ecosystem, we anticipated the changing landscape and responded quickly. We combatted slower demand and drove record profitability, with record operating income of $1.8 billion.”

— Chuck Whitten, co-chief operating officer, Dell Technologies

APJ, a region that comprises India also, played a very big role in the company’s global operations. With demand from IT/ITeS on a muted note and with education and government sectors showing new hunger for devices, it would be a new bag of opportunities and dead-ends mixed for PC majors. Dell has a lot going in its kitty. Dell Laptops had emerged as the most desired brand in India, in a survey by consumer insights and brand analytics company, Trust Research Advisory (TRA). Would the newly-built-up appetite for digital tools and devices continue ahead and will Dell give more power to people and its own trajectory? Dell will tell.

Key wins and initiatives

• Plans to expand notebook manufacturing in India

• Participation in India’s Production Linked Incentive (PLI) and Preferred Manufacturing in India (PMI) programmes

• With NTT for PhonePe for the first green data center

• With Alienware for gaming laptops

Alok Ohrie

CEO, Dell Technologies India

By Pratima H

pratimah@cybermedia.co.in