Dell Technologies, the global computing solutions giant, is on a growth trajectory on steroids in India, with the country’s revenue tripling to $4 billion between FY 2017 and FY 2022, at a compound growth rate. is over 20%. However, the home run was over.
The company’s sales decreased for the second consecutive year in the fiscal year ending March 2024.
Meanwhile, it has managed to extract record profits from its business in the country.
Dell operates in India through multiple channels, with imported computer sales or trading being the top segment.
During FY24, sales of such computers increased by 3% to Rs 14,066.50 crore. This was offset by a sharp decline in manufacturing activity at Sriperumbudur in Tamil Nadu, which makes computers and had an output of more than $1 billion till FY23. The manufacturing sector’s revenue fell by more than 21% to Rs 6,770 crore last year.
The software development division, which provides software development, testing, validation, documentation, program management and product support services to Dell group companies, was the only performer, increasing 18% to Rs 3,248 crore. Dell’s in-house IT support team provides services for IT projects, infrastructure management, and global parent company support. Group call center operations also suffered some failures compared to FY23, with revenues of Rs 2,734 million and Rs 1,177 million, respectively.
Meanwhile, other services provided by marketing support services, analytics, financial sharing services and other IT-enabled services grew to Rs 2,384 crore in FY24.
Globally, Dell Technologies’ 2024 fiscal year fared even worse through January 31, with revenue dropping to $88.42 billion from $102.3 billion a year earlier.
Lenovo, one of Dell’s major competitors in India, faces similar challenges. Lenovo India’s total revenue fell 14% to Rs 10,847 crore, the second consecutive year of decline.
