New Delhi, October 18, 2006: HCL Infosystems Ltd, India's premier Information enabling company today announced its un-audited results for the quarter ended September 30, 2006.

The company has reported consolidated revenue of Rs. 2824.0 crores (USD 612.4 Mn) during the quarter ended September 30, 2006 as against Rs. 2285.3 crores (USD 495.6 Mn) in the corresponding quarter of the previous year, a growth of 24%.

Profit before tax for the quarter was Rs. 93.5 crores (USD 20.3 Mn) as against Rs. 82.0 crores (USD 17.8 Mn) in the corresponding quarter of the previous year. Profit after tax was Rs. 67.1 crores (USD 14.5 Mn).

Revenue from the Computer Systems business was Rs. 563.6 crores (USD 122.2 Mn) as against Rs. 487.5 crores (USD 105.7 Mn) in the corresponding quarter of the previous year, a growth of 16%. Profit before interest and taxes was Rs. 31.2 crores (USD 6.8 Mn) as against Rs. 27.4 crores (USD 5.9 Mn) in the corresponding quarter of the previous year, a growth of 14%.

Revenue from the Telecommunication and Office Automation business was Rs. 2254.4 crores (USD 488.9 Mn) as against Rs. 1791.2 crores (USD 388.5 Mn) in the corresponding quarter of the previous year, a growth of 26%. Profit before interest and taxes was Rs. 62.3 crores (USD 13.5 Mn) as against Rs. 47.8 crores (USD 10.4 Mn) in the corresponding quarter of the previous year, a growth of 30%.

Consolidated EPS for the quarter was Rs. 3.97 per share.

The Board of Directors has declared quarterly Interim dividend of Rs. 2/- per share
(100 % on an equity share of par value of Rs. 2/- each)

Conversion rate: 1 USD=46.11 INR

Announcing the results, Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems, said, " We are glad to share that HCL has not only further consolidated its presence as nation's largest player in the ICT distribution & service domain - but has also spearheaded the penetration of digital lifestyle and technological innovations in the country. This quarter witnessed opening up of HCL Digilife outlets in different parts of the nation in quick succession as well as adding Casio digital cameras in our rich digital lifestyle product portfolio. Opening new avenues of opportunity in the IT industry, HCL has also spearheaded 'co-creation' of products - specifically developed & designed for particular industry verticals. After having launched pioneering PCs and complete trusted ICT infrastructure for the BPO sector, we are working on developing products for the other emerging industries too. I am proud to note that HCL has sustained its quest for innovation and passion even today."

Key initiatives of the Quarter:

Taking concrete steps to effectively capture the growing organized retail market and redefine standards for digital lifestyle retailing, HCL is setting up a chain of exclusive Digital Lifestyle showrooms all across the country. These stores offer an 'experiential' journey into the complete digital lifestyle product range of HCL and serve as a one-stop-shop for all the digital needs of a household. The current quarter witnessed the launch of ten such stores, spread across the nation - with many more planned to be launched in the coming quarters.

Further consolidating its digital lifestyle offerings, HCL also announced a strategic national distribution tie-up with Casio India Pvt. Ltd. - to distribute & service Casio digital cameras in the country. Casio - one of the leading global pioneers in digital imaging technology and leaders in Japan market - would leverage the wide reach & distribution expertise of HCL to take their gen-next 'Exilim' range of slim digital cameras to key Indian markets.

India is a multilingual country and considering that less than 5% of the Indian population understand English, HCL endeavored to reach out to the non-english speaking masses by launching an exclusive Ezeebee range of PCs. These PCs with Microsoft XP edition running on original Microsoft operating system support multilingual usage. HCL, the first Indian IT company to initiate financing on PCs, as part of this initiative has introduced finance with 0% interest and extended warranty on select models of its Ezeebee product range. On mobile computing front, HCL launched Toshiba Satellite L30, a perfect mix of price and value thus offering an ideal choice for the first time notebook buyers and small business enterprises.

One step ahead in its effort to develop customized solutions for the emerging small business enterprises, HCL launched a new Electronic Cash Register specially aimed to assist the small and medium businesses. The ECR comes with in-built battery back-up and it speeds up the process of daily tracking of sales, inventory report, purchase report and all credit sales thus saving a lot of time for the enterprise.

HCL continued to be the 'nation's first' for simultaneous global launches of advanced computing technologies for the Indian enterprises. Leveraging its 'lead server account' with Intel - which empowers it to actually co-test advanced technologies prior to their commercial launch - HCL became India's first hardware vendor to introduce products such as Intel Core 2 Duo-powered PCs and Intel vPro based PCs.

The launch of Dual-core Itanium processor-based enterprise servers is yet another progressive step ahead in the direction of HCL's endeavor to provide the latest high-tech server solutions. It has also introduced new products covering the entire spectrum of servers market with products ranging from 2-way to high-end 32-way servers. These new class of dual core enterprise servers offer almost twice the performance at lower price points vis a vis the proprietary architecture server platforms. In the enterprise business space HCL showed healthy growth, winning new customers from leading corporates, banks and government sector.

Leveraging its three decades of expertise in ICT technology enablement, HCL also announced the launch of a pioneering new PC and trusted ICT infrastructure solutions for the burgeoning Indian BPO-IteS sector. Launched in the presence of Mr. Kiran Karnik, President, NASSCOM - these solutions are designed to enable the BPO centers comply with global security standards as well as better manage their resources and substantially reduce their IT infrastructure cost.

Using a set of innovative & advanced security technologies such as biometric & smart-card logon, physical hard disk separation, data encryption, network partitioning and others - these solutions have been created based on the inputs from some of the leading BPO centers across the country.

The imaging business of HCL showed a remarkable growth over the same quarter in 2005. It won many high value and prestigious orders from the banking, hospitality and Government sectors.

HCL has also consolidated its presence in the telecommunication segment - with launch of several new products. HCL's recent offering in the segment - TV Broadcast Studio, also elicited an encouraging acceptance amongst users. The division bagged deals from prestigious clients like UTV, Bajaj Auto, Cisco, Wipro, GE etc. HCL has also set up video conferencing facilities and TV Broadcast Studios in some of the leading educational institutes of the country.

In the cellular handset business, Nokia continued its dominance in this quarter too. Apart from these initiatives, HCL marketed some new models of iPods introduced by Apple through its sales and distribution network extended to 15 cities across the country.



About HCL Infosystems

HCL Infosystems, with annual revenue of US$ 2.6 billion, is India's premier information enabling and system integration company. HCL offers products and infrastructure solutions in the fields of computing, communication, networking, office automation, broadcasting and imaging. It has partnerships with leading global players like Intel, AMD, Toshiba, Bull, Ericsson, Cisco, Microsoft, Nokia, Apple, Computer Associates, Symantec and Konica Minolta among others.

HCL has a direct sales, channel sales and retail sales network pan India. HCL has a support of 360+ customer service centers and four ISO 9001 certified state-of-the-art manufacturing facilities. HCL Infosystems has pan India presence across metros and non-metros. With a mission to provide world-class information technology solutions and services to enable its customers to serve their customers better, HCL Infosystems is forever setting new standards of IT in the country. For more information please visit us at www.hclinfosystems.in


About HCL Enterprise:

HCL Enterprise is a leading Global Technology and IT enterprise with annual revenues of US$ 3.5 billion. The HCL Enterprise comprises two companies listed in India - HCL Technologies & HCL Infosystems. The 3 -decade old enterprise, founded in 1976, is one of India's original IT garage start -ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration and distribution of technology and telecom products. The HCL team comprises 37,000 professionals of diverse nationalities, who operate from 16 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms including leading IT and Technology firms. For more information please visit us at www.hcl.in