Chinese tech company Lenovo posted strong third-quarter earnings for its current fiscal year as the world's largest manufacturer of personal computers beat analyst expectations, including a net profit of $395 million for its latest quarter.

The company's net profit for the period represented a 53% increase when compared to the previous quarter. The figure beat average analyst estimates of $293.7 million for the period, according to data compiled by Refinitiv. Revenue for the period increased by 22% quarter-on-quarter to $17.25 billion.

Lenovo attributed the significant increase to the strong demand for its products as people shift to work-from-home arrangements due to the prolonged pandemic.

Lenovo's business units, namely its Software and Services business, PC and Smart Devices, and its Data Center Group, all performed better than expected.

"The strong performance has been fueled by Lenovo's robust growth across business groups as well as structural changes in lifestyle and work habits since the onset of the COVID-19 pandemic," Lenovo said.

In its filing with the Hong Kong stock exchange, the company said that Pandemic-fueled buying of laptops and other gadgets had propped up its sales. The company said that group revenue and profit attributable to equity holders jumped by 22% and 53% year-on-year, respectively.

The company's software business - the highest margin profile among its products, delivered its best performance to date. The company reported a 36% invoiced revenue growth for the business for the three-month period.  

Lenovo's personal computer unit outperformed the market with pre-tax profit growth of 35%, setting a new personal best. The company said that its unique "hybrid manufacturing strategy" proved effective in significantly improving profitability.

Data from research company Gartner showed that worldwide shipments of personal computers had increased by 10.7% in the December quarter. Lenovo continues to dominate the market, with a 27.1% share. Right behind it is HP with a 19.8% market share and Dell Technologies with 16.6%.

The release of the company's latest earnings report comes just a month after it announced plans of issuing new Chinese Depository receipts (CDRs). The company plans to issue CDRs representing around 10% of its total stock listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.