Lenovo's growth slips again in India amid weak PC market

Chinese computer manufacturer Lenovo India faced a second consecutive year of a fall in sales and net profit in 2023-24, when the country’s computer market slowed down from the Covid-19 peak.

The company’s total income declined 14% year-on-year to Rs 10,847 crore, while net profit fell 3% to Rs 100 crore, as per the company’s filing with the Registrar of Companies. For 2022-23, the company had reported a 12% drop in sales while net profit fell a sharper 45%.

Lenovo India said in its latest filing that despite economic uncertainty, supply chain disruptions and inflationary pressures, it demonstrated resilience. It did not give any reasons behind the financial performance. Queries emailed to the company remained unanswered.


As per market researcher IDC India, the country’s personal computer (PC) market (desktops, notebooks and workstations) declined 6.6% year-on-year in 2023 to 13.9 million units. In the first quarter of the 2024 calendar year, the market grew 2.6% year-on-year, and 7.1% in the second quarter. Lenovo India was in second place in the April-June quarter with 17.5% market share, after HP Inc’s 31.7% share, IDC India said.

Mohit Yadav, analyst and founder of business intelligence firm AltInfo, said Lenovo India’s profit levels declined marginally in 2023-24 through cost optimisation.

“There has been a significant improvement in cash position – more than doubling to Rs 1,091 crore - suggesting Lenovo India is building reserves amid market uncertainties. However, the rising trade payables by over 50% to Rs 2,428 crore warrants attention as it could indicate stretched working capital management,” said Yadav.

Lenovo India managing director Shailendra Katyal said in the RoC filing that throughout 2023-24, the company significantly expanded its portfolio with artificial intelligence (AI)-enabled, AI-ready and AI-optimised devices and infrastructure, including PCs, workstations, servers and edge computing solutions.

The company also launched a new range of products with made-in-India components which, he said, reflected a commitment to local manufacturing and strengthening its role in the global supply chain.

“We have also announced our intention to participate in the PLI (production-linked incentive scheme) 2.0 IT hardware scheme through local partners, reinforcing our dedication to India and our active involvement in government initiatives aimed at scaling production and supporting India’s growth as a global electronics manufacturing hub,” said Katyal.

Lenovo India has partnered Dixon Technologies for manufacturing of its products.

The company said that in 2024-25, the focus will be on enhancing local manufacturing and expanding global capability centre footprint, and bringing AI-powered computers from a premium segment to the mainstream market.

Lenovo India’s auditor, Price Waterhouse Chartered Accountants LLP, said in the filing that the Income Tax Department's search of Lenovo India’s premises in September 2023 and subsequent notice for the assessment year 2017-18 led the computer maker to file revised income tax returns for that year.

“The impact of this matter on the other assessment years which were also subject to the search, is dependent upon the notice(s)/ order(s) in respect of those years which are yet to be received by the company,” it said in the auditor report.