Hewlett-Packard (HP) India, a leading brand in the computing space, registered 104% year-on-year (y-o-y) growth in net profit in FY14 to Rs 196.3 crore. During the period, income rose 33% to Rs 13,221.7 crore, according to a filing with the Registrar of Companies (RoC).
Though the company has been struggling to stabilise margins since FY11, this is the first time since 2010 that it has witnessed growth in net profit.
In FY10, Hewlett-Packard India posted a Rs 696.3-crore profit with a profit margin of 9.1%. By the end of FY11, even though revenue increased 6.6%, profit margin slipped to 1.9%. The margin fell further in the following two years and hit the bottom, at 0.97%, last year when it managed to post a Rs 96.3- crore net profit.
In India, HP increased its margin to 1.47% in FY14 from below 1% last year. However, according to an analyst, it is still lower than industry’s average. “From the industry’s perspective in India, the margin is 2-3% now,” the analyst said.
By Arnab Dutta
