As demand for digital devices to maintain work-life balance continued to surge amid the second Covid wave, Lenovo saw a 31.3 percent year-on-year growth in the June quarter, clocking around $462 million in revenues for all group businesses in India.
Lenovo saw steady growth in the country throughout the past fiscal year and delivered an exceptionally strong performance this past quarter.
Globally, Lenovo’s performance delivered significant year-on-year profitability improvements, with pre-tax income almost doubling to $650 million (up 96 per cent), and net income also more than doubled (up 119 per cent).
“We saw strong demand across businesses in India over the past year, and the first quarter this year did exceptionally well. As individuals, companies, and institutions address the demands of the ongoing pandemic, they are transforming their relationship with technology,” said Shailendra Katyal, Managing Director, Lenovo PCSD India and Site Leader, Lenovo India.
“With our comprehensive technology services, our broad range of devices, and infrastructure solutions, Lenovo is supporting this transformation. We are expediting the adoption of hybrid work systems, the digitization of core industries, and further educational opportunities,” he added.
In the June quarter, the Lenovo Group logged $16.9 billion in revenue, up 27 per cent year-on-year.
“The accelerated digital and intelligent transformation has created significant market opportunities globally. Lenovo is successfully seizing these as we transform from a device company to a services and solutions provider,” said Yuanqing Yang, Lenovo Chairman and CEO.
“Going forward, we will continue to increase R&D investment, aiming to double it over the next three years and further improve our operational excellence,” he added.
Looking ahead, the company sees continued opportunities for sustainable growth and profitability improvements across its business, in areas such as vertical solutions, infrastructure solutions, premium PCs, and adjacent non-PC devices such as tablets, smartphones, embedded computing, and other smart devices.
Having increased R&D expenses in the first quarter by 40 per cent year-on-year, Lenovo said it will further invest in innovation and double its R&D investments over the next three years.