BRIC countries fuel Dell's growth; posts 52% jump in Q1

Computer maker Dell Inc today reported a 52 per cent jump in net income at $441 million for the three-month period ending April 30, 2010, boosted by strong demand across consumer and enterprise segments along with higher sales in India and Brazil.

In the year-ago period, the company had a net income of $290 million, Dell said in a statement.

The company's overall revenues rose by 21 per cent from the year-ago period to $14.87 billion for the first quarter ended April 30, 2010.

"The results point towards improving economic environment. The growth across our commercial business as well as consumer vertical has helped our numbers," Dell President (Consumer, Small and Medium Business) Steve Felice told reporters through a conference call.

Talking about the Indian market, Felice said, "We have had a focussed strategy for India and that is now paying off. We are a solid No 2. We have substantially increased our coverage of the Indian market and the progress is excellent."

He added that the consumer segment has witnessed a 100 per cent growth in India and China.

Dell has generated robust revenue from BRIC (Brazil, Russia, India and China) countries. Revenue from these nations increased by 60 per cent, led by India's 90 per cent growth and Brazil with 81 per cent, the statement said.

Besides, China had revenue growth of 44 per cent, representing a critical growth engine for the company.

The firm attributed its profit to strong demand in BRIC countries, robust growth in all segments and higher sales of personal computer and server.

In customer segment, Dell reported a 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 25 per cent to $4.2 billion, benefited by demand for servers and technology services.

Besides, revenue from public agencies grew 22 per cent, while sales from small and medium businesses went up 19 per cent and consumer revenue was up 16 per cent during the period under review.

Revenue from desktop personal computers registered 13 per cent growth, while the mobility segment, mainly notebook computers, saw 18 per cent rise. In addition, Dell's servers, storage and services revenue together saw a 38 per cent jump.

Looking ahead, the company is optimistic that its commercial business will keep picking up throughout the year, helped by a strong refresh cycle for PCs.

However, it did express caution saying, "The second quarter and the first part of the third quarter typically experience slower demand from larger commercial customers in the US and Europe."