China's Lenovo Group reported a more than three-fold increase in its quarterly profit as strong computer sales helped the world's largest personal computer (PC) maker to beat market expectations.
Lenovo's net profit in the quarter ended March rose to $118 million (roughly Rs. 820 crores) compared with an average estimate of $91.4 million by seven analysts, according to Refinitiv data, and versus a profit of $33 million a year earlier.
"The growth strategy of PC and Smart Device (PCSD) focusing on commercial, high-growth and premium segments has paid off in delivering record revenue for the fiscal year," CEO and Chairman Yang Yuanqing said in a statement on Thursday.
Revenue rose 10 percent to $11.71 billion (roughly Rs. 81,500 crores), in line with the average estimate of $11.65 billion by 11 analysts.
For the full year ended March, Lenovo swung to a profit of $597 million, from a loss of $189 million a year earlier. Revenue rose to a record $51 billion, which Lenovo attributed mainly to record revenue from its PCSD business - which accounts for 75 percent of its total revenue.
The global PC market as measured in shipment units declined 4.6% in the three months of the year, estimates from industry consultancy Gartner show.
© Thomson Reuters 2019