Intel India saw profits grow 4.6% to Rs 379 crore and revenue by 23% to Rs 4,149 crore in fiscal 2018, according to the company’s filings with the Registrar of Companies (RoC).
The company has seen increased competition from peers such as AMD in India and other markets, say analysts.
“Physical infrastructure (data centre) across organisations is seeing slowing demand and that is impacting the hardware product business. Products have traditionally got a higher margin for companies like Intel but with the recent movement of enterprise workloads to a multi-cloud setup, the need to invest in physical infrastructure has reduced,” said Sanchit Vir Gogia, chief executive, Greyhound Research.
Intel India did not respond to an email from ET with detailed queries.
In a report last month, IDC said the overall server market in India witnessed a decline of 8.1% to $276.6 million in the quarter to September over the previous year. The x86 server market, which is used by IT services firms to host applications in their campuses, has de-grown for Q3 2018.
The company has also applied for the merger of its mobile communication-related business with Intel India and is awaiting regulatory approvals.