Strong growth in BRIC region pushes Dell Q2 net up 16 pc | business | Hindustan Times
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Strong growth in BRIC region pushes Dell Q2 net up 16 pc

business Updated: Aug 20, 2010 11:50 IST
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Riding on strong growth in emerging markets like India, computer maker Dell on Friday reported a 16 per cent jump in net income at $ 545 million for the three months period ended July 30, 2010.

"We saw a robust revenue growth of 52 per cent from BRIC (Brazil, Russia, India and China) countries. India, where we are now ranked No 1 by IDC (IT research firm), grew 80 per cent," Dell President (Consumer, Small and Medium Business) Steve Felice told reporters on a conference call.

While large enterprises continue to contribute half of the revenues in India, consumers, small and medium businesses will continue to drive growth in this market, he added.

BRIC countries now account for 12 per cent of Dell's overall revenue.

The Texas-based company's overall revenues rose by 22 per cent to $ 15.53 billion in the May-July period.

Talking about the Indian market, Felice said, "The Indian market holds immense potential for us ... We are also exploring export opportunities from our factory in India, but nothing has been finalised as of now."

For the third quarter, Dell anticipates revenue growth between 14-19 per cent and non-GAAP operating income growth between 18-23 per cent.

"For the third quarter, Dell expects seasonal improvements from federal government sales and commercial businesses, resulting in a pick-up in the low single digits," it said.

Asked about introducing smartphones in the Indian market, Felice said, "The Aero is likely (to be launched) by the end of this year. I think Streak is more likely to hit the Indian markets by next year."

Last month, Dell had placed an advertisement in a local newspaper, saying it is "making a move into mobile phones" and is seeking distributors with "retail reach."

Post the economic downturn, there has been a revival in corporate buying and has helped Dell's enterprise solutions (including servers and networking systems, storage and services) revenues increase significantly in Q2 worldwide.

By customer segment, Dell reported growth in terms of revenues for all four segments -- large businesses, public agencies small and medium businesses and consumer.

Dell's sales from large businesses surged by 38 per cent to $ 4.5 billion, driven by revenues for servers, services and mobility.

Besides, revenues to public agencies grew 21 per cent, while sales to small and medium businesses went up 25 per cent and consumer revenue remained flat at $ 2.9 billion.