HCL Infosystems reports 6% sequential growth in Revenues and Profit after tax
- Consolidated revenue reported at Rs. 2810 crores for the quarter, a sequential growth of 6%
- Consolidated profit after tax was Rs. 12 crores for the quarter (including foreign exchange loss of Rs. 22 crores), a sequential growth of 6%
- Revenue from Computer Systems business for the quarter was Rs. 722 crores
- Segment profits for Computer Systems business for the quarter was Rs. (1) crores (including foreign exchange loss of Rs. 15 crores), a sequential growth of 91%
- Revenue from Telecommunication and Office Automation business for the quarter was Rs. 2073 crores, a sequential growth of 17%
- Revenues from Telecom distribution business for the quarter was Rs. 1792 crores, a sequential growth of 27%.
- Segment profits for Telecommunication and Office Automation business for the quarter was Rs. 45 crores (including foreign exchange loss of Rs. 7 crores), a sequential growth of 22%.
- The longstanding relationship of HCL Infosystems and Nokia was renewed and announced in the last quarter. The partnership witnessed substantial uptake for the new product range launched in the period
- The company continued to generate strong free cash flow (FCF) from operations and had Rs. 44 crores of FCF in the quarter.
- The Board of Directors has declared 50% quarterly Interim dividend. This is the 33rd continuous quarter for dividends.
(50 % on an equity share of par value of Rs. 2/- each)
- The rate of Interim dividend for the quarter was lowered from 100% to 50% on account of foreign exchange rate loss of Rs. 22 crores; while the free cash flows continued to be strong Rs. 44 crores for the quarter.
HCL Infosystems India’s premier ICT System Integration, services, hardware and distribution company today announced financial results for its first quarter ending September 30th 2011.
Mr. Harsh Chitale, Chief Executive Officer, HCL Infosystems Limited, commenting on the results said,
“The quarter recorded strong positive movements in the B2C Computing, led by turn around in consumer computing on the strength of a reinvigorated product mix. Our distribution business performed extremely well with better traction of new models of a leading telecom brand in the portfolio. Overall System Integration business continued to be severely impacted by slow down in projects and customer decision cycles. Our Learning Business consistently grew market share and also recorded year on year growth.B2B Computing & Office Automation Business did have significant declines YOY due to reduction in spending by government sector. I am confident that the companywide business excellence program ‘Aspire’ triggered over the last two quarters to re-align the organisation to drive cost and working capital efficiencies and to re-position for future growth opportunities will over the next few quarters show positive results in terms of both bottom-line as well as cash flow performance.”
Key updates and Quarter Snapshot
- In our last financial results release we had indicated that our Systems Integration (SI) Business will continue to be affected adversely by project delays over a few quarters
- During this quarter also the SI business has been impacted by continued slowdown in projects and customer decision cycles
- During the quarter, the BFSI vertical bagged various orders from leading banks like Central Bank of India, UCO Bank and SBH to undertake Financial Inclusion mandates including banking for the unbanked
- Several banks and financial institutions like Dena Bank, State Bank of Travancore, State Bank of India, Mahindra Finance etc. had solutions deployed by the company
- Company also won large multiyear contract for nationwide Infrastructure Managed Services engagement from a leading Pharma company in India
- The Office Automation Business won various orders from organisations like All India Radio (Delhi), Doordarshan, Cisco, Vodafone, Reliance Life Insurance etc
- HCL Digischool grew YOY by 100%
- HCL Learning recently in the month of October also tied up with Annamalai University to launch the MBA-IMS Program (Infrastructure Management & Security) via distance learning mode
- Our 100% subsidiary, Digilife Distribution and Marketing Services (DDMS) further enhanced the portfolio with signing on brands like Hitachi and Emtec for distribution and marketing mandates
- As a recent development in the month of October, our mobility division unveiled the next generation Tablets by HCL, the ME X1 tablet
- HCL Infosystems MEA, company’s subsidiary based out of Dubai, further enhanced its reach with the addition of customers like Amor Group, Dubai Chamber Of Commerce, Dubai World and STRATA – Government of Abu Dhabi
Awards and Accolades
The quarter that went by witnessed numerous recognitions for the Company as we bagged several awards and accolades as under:
- HCL Infosystems Ltd. wins Skoch Digital Inclusion Award in “Technology in Service Delivery” category for successful implementation of Kolhapur Municipal Corporation E-Governance project
- HCL Infosystems: No. 1 Employer of the Year by DQ-CMR Best Employer Survey 2011
- Won DDI’s “Grow your Own Leaders Award” for overall management culture & effectiveness of the organization’s talent management system
- HCL Learning won Best Innovative Live Two Way Learning Solution for Test Preparation – Xcelerate and Most Preferred Learning Solutions Partner for Schools – Digischool at the World Education Congress
About HCL Infosystems
HCL Infosystems Ltd, with revenue (LTM) of US$ 2.6 billion (Rs.11,362 crores) is India’s premier hardware, services and ICT systems integration company offering a wide spectrum of ICT products that includes Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a one-stop-shop for all the ICT requirements of an organisation. India’s leading System Integration and Infrastructure Management Services Organisation, HCL has specialised expertise across verticals including Telecom, BFSI, eGovernance & Power. HCL has India’s largest distribution and retail network, taking to market a range of Digital Lifestyle products in partnership with leading global ICT brands, including Apple, Cisco, Ericsson, Kingston, Kodak, Konica Minolta, Microsoft, Nokia, Toshiba, and many more. HCL today has India’s largest vertically integrated computer manufacturing facility with over three decades of electronic manufacturing experience & HCL desktops is the largest selling brand into the enterprise space. With India’s largest ICT services network that reaches to every corner of India, HCL’s award winning Support Services makes it the preferred choice of enterprise and consumers, alike. For more information please visit us at www.hclinfosystems.in
About HCL Enterprise
HCL is a $6 billion leading global technology and IT enterprise comprising two companies listed in India – HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 85,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HCL has partnerships with several leading global 1000 firms, including leading IT and technology firms. For more information, please visit www.hcl.com