In India, Lenovo saw steady growth throughout the past fiscal year and delivered an exceptionally strong Q3. Total revenue for all Lenovo businesses in India was US$ 662 million for the third quarter (October-December 2021) of the fiscal year ending March 31, 2022, representing year-on-year growth of 58.5 percent.
“Lenovo had a great quarter with strong demand across businesses in India. India is leveraging the power of technology to transform businesses, education, homes, and lives, and Lenovo is committed to driving this transformation. We are seeing a continuing rise in demand for our solutions and services, including as-a-service offerings; this trend has accelerated during the past several quarters as we support our customers’ changing needs. At the same time, we have invested in further expansion of our local presence, including our initiatives supporting Make in India,” said Shailendra Katyal, Managing Director, India, Lenovo PCSD, and Lenovo India Site Leader.
Lenovo Delivers Record Quarter, as Strategy and Investments in Innovation Continue to Drive Sustainable Profitability Growth
HONG KONG, February 23, 2022– Lenovo Group (HKSE: 992) (ADR: LNVGY) today announced record quarterly results for the Group, with historic highs for both profit and revenue and the Group’s first US$20 billion quarter. The company’s focus on innovation and profitability, supported by its operational excellence, has helped it navigate wider industry supply challenges and delivered rapid growth and profitability across all key business groups and geographies.
Lenovo’s performance delivered significant year-on-year improvements. Net income grew at a rate of over 50% for the 6th consecutive quarter, with Q3 growing 62% year-on-year to a record US$640 million. Net income margin improved by nearly one point, on track towards the Group’s goal of doubling in three years. Pre-tax income was a record US$855 million, up 45% year-on-year, and Group revenue continued its strong growth trajectory hitting a record US$20.1 billion, up 17% year-on-year.
Lenovo continues to invest significantly in innovation, with R&D expenses for the quarter up 38% year-on-year, as part of the company’s wider commitment to double R&D investment over three years. Investments are aligned to driving Lenovo’s ongoing transformation to a solutions and services company, by developing technologies focused on the “New IT” full stack architecture of “Client-Edge-Cloud-Network-Intelligence”. Looking ahead, the company remains focused on its 3S strategy (Smart devices/IoT, Smart Infrastructure, Smart Verticals) seeing continued opportunities for sustainable growth and profitability improvements across all areas of the business, keeping it on track to double net margin by the end of FY 2023/2024.
The Hang Seng Indexes Company Limited announced last week that effective March 7, 2022, Lenovo will be included as a constituent stock on the Hang Seng Index – Hong Kong’s benchmark stock gauge.
Chairman and CEO quote – Yuanqing Yang:
“Lenovo continued to embrace the opportunities driven by accelerated digital and intelligent transformation, and our New IT architecture prepared us well with ‘client-edge-cloud-network-intelligence’ capabilities. With another record quarter, we delivered the 6th quarter of more than 50% net income year-on-year growth, and the first US$20 billion revenue quarter in our history. We remain on track to double both our net margin and R&D investment in three years from FY20/21 levels.” said Yuanqing Yang, Lenovo Chairman and CEO. “Once again, we have shown that Lenovo’s innovation, transformation strategy, and strong execution can consistently deliver sustainable profitability increases for the future.”