BENGALURU: India is a bright spot for IBM. It was called out for its performance by CFO Martin Schroeter in the June and October quarters. And its most recent financials, filed with the Registrar of Companies, reinforces it.
IBM India’s revenue rose 10.3% to $3.43 billion in 2015-16, from $3.11 billion in the previous year, riding on the robust performance of its domestic IT and export IT servicess businesses. Domestic IT sales grew 10.6% to $731 million and the exports rose 13.6% to $2.34 billion. The export business growth is better than that for most Indian IT services companies. Nasscom had estimated that the industry average growth in the year was 12.3% in constant currency. Some 133 executives in the company received a salary of Rs 1 crore or more in the year.
India’s standout performance has got a lot of attention because IBM’s Asia-Pacific business has decelerated due to a decline in the Japan business and weaker performance in China. IBM India has four primary business segments – hardware, software, financing, and sale of services (includes domestic IT services and export IT services). The sales from hardware and software dropped 16.4% and 4.9% respectively in 2015-16.
IBM India’s net profit rose 12.6% to $242 million. Operating profit increased by about 5%, from $441 million to $463 million. The company has merged three subsidiaries in India – Bigfix Software, Telelogic India and Unica Softtech Systems India – into Sterling Commerce Solutions India and a one-step down subsidiary IBM Business Consulting Services. IBM globally has seen its revenue decline for 18 consecutive quarters, as the company struggles to deal with the massive changes in the technology environment towards cloud and mobile. It is investing significantly in analytics and cognitive computing.
