Nokia Q1 net sales rise 10% to 5.8B euros as India biz jumps four-fold

Finnish telecom gear maker Nokia on Thursday reported a 10% increase in global net sales to 5,859 million euros in the first quarter ended March 2023, on account of over a four-fold jump in Indian business.

The company registered 5,348 million euros in net sales in the same period a year ago.

"Network infrastructure and mobile networks both grew at double-digit rates, with network infrastructure increasing 13%, led by optical networks and IP networks, and mobile networks increasing 13%, reflecting the continued ramp up of 5G in India," Nokia said in its earnings report.

Boost in Indian sales saved the company from the reduced spending in North America and other geographies.

Nokia India sales zoomed by over four-fold to 853 million euros during the reported quarter from 200 million euros in the March 2022 quarter on account of fast pace deployment of the 5G network in the country.

"Mobile Networks net sales grew 13% (on constant currency basis) as 5G deployments in India ramped up, more than offsetting a slowdown in North America spending," Nokia President and CEO Pekka Lundmark said in the earnings report.

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Nokia reported a 9% or 160 million euros dip in North American business to 1,666 million euros from 1,826 million euros on a year-on-year basis.

"The double-digit decline in North America reflected lower net sales in Mobile Networks as customer spending returned to a more normal pattern in 2023 (compared to first-half biased spending in 2022), combined with some customer inventory depletion seen in the quarter," Nokia said.

The company's business in Greater China declined by 14% to 336 million euros during the reported quarter from 392 million, Asia-Pacific sales dipped by 9% to 578 million euros from 634 million on a y-o-y basis and business in Europe remained flat.

Overall Nokia's business came down by 272 million euros but India alone added net sales of 653 million euros.

"The strong growth in net sales in India was related to Mobile Networks, as 5G deployments continued to ramp in the first quarter of 2023. Network Infrastructure also saw strong growth driven by Optical Networks, IP Networks and Fixed Networks," Nokia said.

India is the third biggest contributor to overall sales of Nokia after the US and Europe.