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As China’s growth engine stalls, Dassault Systemes is hoping India, Japan & Korea can compensate

The company, on Monday, began the inaugural 3DEXPERIENCE World event that builds on the 20-year legacy of Dassault Systèmes’ SolidWorks World events dedicated to the 3D design and engineering community.

, ET Online|
Last Updated: Feb 12, 2020, 01.17 PM IST
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India, Japan and Korea can compensate for any slowdown in China: Dassault Systèmes
India, Japan and Korea can compensate for any slowdown in China: Dassault Systèmes
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French tech major, Dassault Systèmes says the ongoing Coronoavirus crisis in China may hit business growth in the key Asian market, but is hoping others in the region, especially India, can cushion the impact.

“We were very pleased with the 2019 results from India. China has remained strong, but I think we can predict a slowdown from China in 2020. Given the footprint we have, we believe India, Japan and Korea can contribute to compensate,” says Dassault Systemes, Vice Chairman of the Board & CEO, Bernard Charlès. Charles adds that the company is backed by a very strong growth in the Americas, clocking 24% and that it can grow further in that market and in Europe.

The company on Monday began the inaugural 3DEXPERIENCE World event that builds on the 20-year legacy of Dassault Systèmes’ SolidWorks World events dedicated to the 3D design and engineering community. About 6,000 designers, engineers, makers, entrepreneurs, students and business leaders from all industries have come together to learn, collaborate, innovate and experience the latest 3D technologies.

Earlier this month, the company announced its FY19 results that put Q4 non-IFRS total revenue at €1.21 billion, operating margin 33.6%, EPS €1.20. The FY non-IFRS total revenue was up 13% to €4.06 billion, EPS up 17% to €3.65. Charles says it is difficult to predict now, but there are ways to hedge against a slowdown. “We will see at the end of Q1 or mid-year if we have to tinker with the guidance, but at the moment we believe the guidance we had stated. Our India revenue has also grown significantly last year and the plan is to double our revenue every three to five years,” said Charles.

Growth, according to him, should come from sectors like the aerospace that did well last year and would continue to be strong. Another sector Charlès adds would be big is the entire mobility space. “The energy space is also a very exciting sector for us and in India we have great partners like L&T. With the acquisition of Medidata, life sciences is a new sector that we would want to accelerate as well as industrial equipment,” said Charles.

(Disclaimer- The reporter is on a Dassault Systemes sponsored trip to Nashville.)

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