HCL Infosystems reports consolidated revenue of Rs. 3,027 crores (USD 633 Mn) for the quarter ended 30th September 2009. .
- The Board of Directors declared 75 % quarterly dividend.
- Services revenue grew by 12 % YoY during the quarter.
- Launched ‘Bharat PC’ as a part of National Broadband Penetration Program (NBPP)
- Bags India’s First RAPDRP order of over Rs. 500 crs to implement a state wide power solution in Rajasthan
- Ranked No.1 by DQ –IDC ‘Best Employers 2008 -09’
- Rolled out new marketing initiative ‘Mobile Excitement’, a multi dimension initiative with more focused marketing strategy towards today’s youth
Investor Pack for Q1 FY 2009-10 (.pdf file) Unaudited Financial Results for the quarter ended 30th Sep ’09 (.pdf file)
Transcript of the Earnings Call on Q1 FY 10 results
Results Highlights
The company has reported consolidated revenue of Rs. 3027.5 crores (USD 632.8 Mn) for the quarter ended September 30, 2009.
Consolidated services revenue for the quarter was Rs. 146.7 crores (USD 30.7 Mn), a Y-o-Y growth of 12%.
Consolidated profit before tax for the quarter was Rs. 83.0 crores (USD 17.3 Mn).
Consolidated profit after tax for the quarter was Rs. 59.0 crores (USD 12.3 Mn).
Revenue from Computer Systems business for the quarter was Rs. 817.4 crores (USD 170.9 Mn).
Profit before interest & taxes for Computer Systems business for the quarter was Rs. 48.3 crores (USD 10.1 Mn).
Revenue from Telecommunication and Office Automation business for the quarter was Rs. 2221.6 crores (USD 464.4 Mn), a sequential growth of 2%.
Profit before interest & taxes for Telecommunication and Office Automation business for the quarter was Rs. 55.6 crores (USD 11.6 Mn).
Consolidated EPS for the quarter ended 30th September 2009 was Rs. 3.4 per share.
The Board of Directors has declared quarterly Interim dividend of Rs. 1.5/- per share
(75 % on an equity share of par value of Rs. 2/- each)
Conversion Rate 1 USD = Rs. 47.84
Overview
Commenting at the results announcement Mr. Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd said“The year gone by has witnessed a major turmoil in the global economic scenario across the globe as well as in India. The ICT market in India has since de-grown due to a host of reasons including global slowdown, currency fluctuation and the political situation. However, with improving sentiments across the world, we have seen the Indian ICT market picking up sequentially over the last two quarters. HCL today is one of the largest India facing ICT companies, with diverse business portfolio’s, each with its specific growth trajectory and this has helped the company to tide over the recent challenging times. The quarter witnessed HCL unveiling pathbreaking initiatives like ‘Bharat PC’ and has seen us investing in our brand through our new youth centric ‘ME’ campaign, which we intend to continue to invest in as we go forward. I am also proud to share that this quarter we were rated as the ‘Best Employer’ in the Indian IT sector by a DQ – IDC survey.”
During the quarter, the company has announced various initiatives as a part of its growth charter. This quarter saw the company launching a nation building initiative in ‘Bharat PC’ as a part of National Broadband Penetration Program (NBPP). This quarter, the company also rolled out successfully its new marketing initiative ‘Mobile Excitement’. The multi dimension initiative includes more focused marketing strategy towards today’s nomadic customer and saw the launch of a new logo and TV commercial focused around Mobility and life–on–the-go. HCL ME campaign has been designed around the concept ‘It’s all about ME’ thereby reaching out to the largest emerging consumer group – the youth & the young executives. On the System Integration Front, the company bagged orders from leading banks, PSUs, corporates and multinational establishments in the BFSI, eGovernance, Railways, telecom, Power and Infrastructure verticals. The company has also been ranked as ‘Best Employer 2008-09’ in the Indian IT sector by IDC DQ survey.
Business Highlights for the quarter
Enterprise Products & Services
In the enterprise space HCL bagged orders to deploy desktops, servers and networking products from the leading names across industry verticals including government, education and BFSI.
HCL also saw wins in High Performance Computing space as the company bagged orders from leading universities and research institutions of the country. The company also bagged orders for deploying servers from leading Banks, Educational Institutions and Corporates.
HCL is committed to bring the best and the latest in technology to the Indian Customers. This quarter, the company launched a host of products and solutions designed especially for the enterprise market. HCL introduced a new desktop model Neutron PC with Optical Disk Drive (ODD) & Trim Top. On the notebooks front, company this quarter, launched ME Series 43 based on CULV SKU Intel GS40 chipset with 7 hours battery backup & multi touch gesture touch pad. In the server space, HCL this quarter introduced a new server series based on the latest Intel Nehalam architecture.
This quarter HCL along with BSNL launched HCL broadband PC under the National Broadband Penetration Program (NBPP). The program is a nationwide initiative to accelerate IT proliferation in rural India. The project aims to accelerate PC and broadband penetration by offering a complete solution and to create new markets in the interiors of the country. The NBPP project, believed to be the largest government program to promote rural connectivity till date, aims to break through the affordability barrier. The project aims to power the next million PC+ Broadband connections in untapped market space.
This quarter HCL bagged a strategic IT outsourcing deal from Fortis Healthcare Ltd, the leading healthcare company in the country. The deal is a part of the five year agreement under which HCL will undertake complete outsourcing of IT systems and processes of the Fortis Healthcare Ltd. HCL will deploy Hospital Information Systems (HIS) & Enterprise Resource Planning (ERP) solutions to standardize operations across hospitals. HCL also bagged another IT outsourcing deal from a large player in the logistics industry.
This quarter HCL bagged a turnkey contract from Bharti Airtel for establishing their network operation centre. The company also won an order from Commonwealth Games for installing and commissioning of the public announcements at the Indira Gandhi Indoor stadium.
Consumer Business
The company this quarter continued its focus on Brand building through innovative and effective methods. This quarter three consumer promotion campaigns for HCL desktops and laptops were rolled out. ‘Young India Offer’ was launched in July, ‘Freedom To Win’ offer for August and ‘Tick and Click’ offer for Onam in September were successfully launched in different parts of the country.
To promote channel business, HCL successfully launched its Channel Loyalty Program “Star’s Club” August’09 with an objective to cultivate loyalty among channel partners and provide sustainable mutual growth. The program elicited a very positive response from the channel community.
This quarter, the company also rolled out successfully its new marketing initiative ‘Mobile Excitement’. The multi dimension initiative includes more focused marketing strategy towards today’s nomadic customer and saw the launch of a new logo and TV commercial focused around Mobility and life–on–the-go. HCL ME campaign has been designed around the concept ‘It’s all about ME’ thereby reaching out to the largest emerging consumer group – the youth & the young executives.
This quarter, the company also rolled out successfully its new marketing initiative ‘Mobile Excitement’. The multi dimension initiative includes more focused marketing strategy towards today’s nomadic customer and saw the launch of a new logo and TV commercial focused around Mobility and life–on–the-go. HCL ME campaign has been designed around the concept ‘It’s all about ME’ thereby reaching out to the largest emerging consumer group – the youth & the young executives.
With consumer sentiments picking up and festival season around the corner, the digital lifestyle business showed better growth in JAS 09 over corresponding quarter last year. As a part of rebranding exercise HCL Digilife stores have been rebranded post the new brand launch of ME. The Multi category stores offering a range of ICT products including laptops, mobiles, cameras, MP3 Players and gaming consoles have been branded as “ME-Zones” and the Computing Stores selling desktops, laptops and netbooks are called “ME-Xclusives”. In the distribution business, the market trend in this quarter has been positive compared to the previous quarters. New product launches by Nokia like Nokia 2323, 2700, 6303 and 6700 have been well accepted.
System Integration (SI)
HCL’s System integration saw the company executing projects in a number of verticals like Telecom, Power, eGovernance, Infrastructure, Railways, Retail and BFSI & Coop.
This quarter HCL bagged a contract of over Rs.500 crs to implement a state wide solution involving integration of IT, GIS, AMR & the associated technologies. The state is also the first in India to facilitate implementation of power reforms by the ministry of power under Re-structured Accelerated Power Development and Reform Program (RAPDRP). The project involves consultancy, design, development & implementation encompassing business process applications, CRM, Billing, GIS, AMR. The project involves setting up of a wide area network, data center with a disaster recovery back-up centre. The project will also implement a state wide differential GPS to map all the electrical assets of the three distribution companies of the state. The project involves creation of baseline data, energy audit, accountability & efficiency improved consumer services & satisfaction. This is the largest power sector order in SI till date.
In the Infrastructure area this quarter HCL bagged an order from a leading airport of the country to deploy Airport control centre solution. This quarter HCL also undertook Network rollout for unreserved ticketing system under itsRailways vertical. In Retail, this quarter saw wins to deploy retail solutions from a leading hospitality chain of the country and Milk Unions & private Dairies across Maharashtra. In the BFSI this quarter, HCL bagged order from a leading financial & banking institution of the country to deploy financial inclusion and infrastructure solutions.
In the eGovernance space, this quarter saw the company bag a project from Uttar Pradesh (UP) State Government, in-order to facilitate disbursement of wages to workers under NREGA project. In order to create an electronic monitoring and payment system, State Government of Uttar Pradesh has partnered with HCL Infosystems to implement technology for issuing e-job cards to workers in Aliya Block under Sitapur district in UP.
The project will be implemented in multiple phases. These e-job cards also provide demographic and biometric details of all the family members willing to do unskilled work, online record of the workers attendance and the record of wages (both accrued and disbursed). These e-job cards are expected to completely eliminate bogus enrollments and transactions through simultaneous use of e-job cards and biometric authentication, authenticate and capture correct data at job site using handheld terminals and update it at block level database through internet/GSM connectivity.
In the security area this quarter company bagged an order for deploying Wireless IP Surveillance Solutions for monitoring purposes at the Khumb Mela in Haridwar and another order from Tutucorin Port Trust, Tutucorin for installing Wireless IP Surveillance Solutions for monitoring activities at the port area. HCL also bagged order from Indian Space Research Organization, Bangalore for installation of Perimeter Intrusion Detection Systems for detecting unauthorized entries inside the premises and projects for installing of X ray based Baggage Screeners to scan parcels & baggage of visiting guests at a major hotel in Mumbai. Also received was an order for installation of Under Vehicle Surveillance System for identification of hidden & concealed objects at the bottom chassis of the vehicles passing by.
Education & Training
This quarter also saw the launch of ‘HCL DigiSchool’, its state-of-the-art solutions designed for Indian schools that offer modern multimedia classroom with world class content. HCL announced this new initiative at ‘eIndia’, a three day international conference on ICT applications being held at Hyderabad. HCL Digischool solutions are designed & customized as per Indian school curriculum including all K12 boards.
Build on the latest eLearning standards, the state of the art module effectively integrates Sharable Content Object Reference Model (SCORM) which is a collection of standards and specifications for web-based e-learning. SCROM compliant Learning Management Systems (LMS) helps in effective lesson planning and content management and seamless integration of various features like interactive white board, student response system and online examination module.
HCL’s training initiatives have grown its presence rapidly over the last quarter taking ICT education to the various corners of India. This quarter HCL CDC announced Yuva Pratibha Scholarship Exam. The initiative saw good response nationally with over 15,000 participants taking the online assessment test. This quarter HCL CDC also tied up with world’s leading independent IT management software company to provide training on network management & security products.
Employee Matrix
HCL Infosystems continues to invest in strong people management initiatives. The total employee strength as on 30th Sep 09 was 6105. This quarter the company has also been ranked as ‘Best Employer 2008-09’ in the Indian IT sector by IDC DQ survey.
Sustained Environment Initiatives
HCL has always been focused in developing a sustainable future through environment friendly green computing. HCL amalgamated its various environment protection initiatives under the comprehensive ‘HCL ecoSafe’ program. Under the ‘HCL ecoSafe’ initiative, HCL Desktops, Servers and Laptops are RoHS (Restriction of Hazardous Substances) compliant.
HCL also has a comprehensive e-waste recycling policy, wherein HCL facilitates its consumers to recycle / dispose their ‘end of life’ products manufactured by HCL in an environmentally safe manner. In addition, the HCL Best Assured Campaign, an initiative against the counterfeit electronic products has created consumer awareness and is helping in preventing the dumping of these into India.
About HCL Infosystems
HCL Infosystems Ltd, with revenue (LTM) of US $ 2.6 billion (Rs. 12,307 crores) is India’s premier information enabling and ICT System 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 organization.
India’s leading System Integration and Infrastructure Management Services Organization, HCL has specialized expertise across verticals including Telecom, BFSI, E-Governance & 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. HCL Infosystems has a 100% subsidiary that addresses the physical security technology system integration market. The subsidiary leverages technology to build a security framework called ‘Safe State’ that will safe guard life, infrastructure & society. For more information please visit us at www.hclinfosystems.in
About HCL Enterprise
HCL is a $5 billion leading global Technology and IT Enterprise that comprises two companies listed in India – HCL Technologies & HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups, a pioneer of modern computing, and a global transformational enterprise today. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over 60,000 professionals of diverse nationalities, who operate from 26 countries including over 500 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 www.hcl.in
