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Leading computer maker Dell today said its net profit declined by nearly 33 per cent to $635 million in the first quarter of 2012-13 ended April 2012, impacted by flat performance in the Asia Pacific and Japan (APJ) region, including India.
Net profit stood at $945 billion for the first quarter ended April 2011. Dell’s fiscal year ends on the Friday nearest to January 31.
The company’s revenues also slipped four per cent to $14.42 billion in Q1 FY’13 from $15.01 billion in 2012.
Dell President (APJ), Mr Amit Midha, said the performance of the region was impacted by India.
Revenues
Though the company’s revenues in the Asia-Pacific and Japan remained flat, but that from China increased 9 per cent. Revenues in the BRIC (Brazil, Russia, India and China) countries increased by 4 per cent.
Europe, the Middle East and Africa (EMEA) revenues was down one per cent in the quarter, while revenues from Americas was down seven per cent.
“The macro-economic situation, currency impacted performance in India. Along with that, the low-priced computer orders by (state) government that we chose not to participate in, affected performance in the country,” Mr Midha said on a conference call.
Low-cost laptops order
He said the company had chosen to not participate in the government-funded programme for procuring low-cost laptops because “it remains focussed on sustainable growth and profitability’’.
“There was a government order for 900,000 laptops to be provided at about $260 to citizens. That changed the game.
We chose not to participate because it is not a part of the strategy. There has to be a balance between revenue growth and margins and we will focus on sustainable growth for our shareholders and our customers,” Mr Midha said.
PC shipments
The PC industry is being benefited by Tamil Nadu’s aim to give laptop to students of state-aided colleges and high schools to fulfil the pre-election pledge made by the Chief Minister, Ms J. Jayalalithaa.
This is expected to add about 920,000 to total shipments in 2012 and is expected to be a major contributor for an estimated 17 per cent growth to reach 12.5 million units, according to research firm Gartner.
Without considering this particular deal, PC market is expected to grow 8.4 per cent in 2012.
Dell expects second quarter global revenue to “to be in line with historical seasonal trends and be up 2-4 per cent from first-quarter levels”.
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