HCL Infosystems Reports Revenue of INR 3,718 Crore in FY 2016 (9 months ended Mar 31, 2016) with positive momentum for Enterprise Business at 34% YoY growth over the 9 month period
Quarter on Quarter Business Highlights
Q3 Revenue at INR 1,101 Crore; Focus on offering complete suite of product, solutions and services to Enterprises & Partners
Enterprise Business revenues grew by 19% Q-o-Q from INR 468 Crore in OND 2015 to INR 556 Crore in JFM 2016
Enterprise Business share in the revenue mix increases from 40% in Q2 FY16 to 50% in Q3 FY16
Consumer Business revenue at INR 453 Crore, declines 20% due to product rationalization by the major Principal
Earnings before interest, taxes and exceptional items was INR (30.4) Crore
Exceptional items for the quarter and year ended March 31, 2016 include impairment charge in respect to Learning Business of Rs. 70 Cr on account of write down of part of the goodwill, which was recognized in the prior years during the process of restructuring of the Company. This write down has no impact on cash flows and brought about due to change in the current business model and changes in the overall business environment for the segment.
Profit / (Loss) before interest, taxes and after exceptional items was INR (101.5) Crore
Profit / (Loss) before tax and after exceptional items was INR (140.6) Crore
9-month (July-March FY16) Business Highlights*
9-month ended Mar 31, 2016 Revenue at INR 3,718 Crore
Enterprise products distribution business registered INR 732 Crore revenue
Consumer distribution business registered revenue of INR 1,893 Crore
System Integration (SI) and Solutions continued its focus on execution with revenues of INR 404 Crore – order book at Rs. 1180 Crore as on 31st March 2016
Earnings before interest, taxes and exceptional items was INR (79.8) Crore
Profit / (Loss) before tax and after exceptional items is INR (253.1) Crore
* HCL Infosystems Ltd. has changed its current Financial Year by shortening it to 9 months i.e. to end on March 31, 2016 (from July 01, 2015 to March 31, 2016) to comply with the requirement of the Companies Act.
HCL Infosystems, one of India’s premier IT Services, Distribution and Digital Solutions Company, today announced its financial results for the third quarter and for the nine months ended March 31, 2016.
Mr. Premkumar, Executive Vice-Chairman and Managing Director, HCL Infosystems Ltd., commenting on the results said, “Due to focus and investments in the Enterprise Business it has registered robust growth over the last three quarters. However, the ‘de-growth’ of the Consumer Distribution Business significantly impacted profitability. The SI business was on track on execution and commercial enablement for payments.”
The core Enterprise Business consisting of Enterprise Products Distribution, Domestic Enterprise Services, Global Enterprise Services and Care Services showed positive traction and will be the engine for the Company’s next level of growth. The business continued its strong performance, growing 19% Q-o-Q and 34% Y-o-Y in revenues.
The Enterprise Products Distribution portfolio was further strengthened with addition of leading international technology brands during the last three quarters. With a differentiated value added distribution proposition, growing strategic partner alliances and channel network, the business is set on a sustainable growth trajectory.
Enterprise Services business kept its focus firm on capability enhancements in the emerging technologies space. The business bagged prestigious deals from major clients, including leading companies in the BFSI sector.
The Global Services business continued to register growth in revenue and profitability. The Singapore business won prestigious Tech Refresh and Operating System Upgrade projects. In order to enhance and accelerate growth the business will widen its focus on the private sector, apart from the government projects. HCL Infosystems MEA bagged important Data Centre transformation and Managed Services deals during the quarter.
The Consumer Distribution business witnessed 20% contraction in Q-o-Q Revenue, affected due to continuing telecom product and price rationalization by the Principal especially in the entry-level category.
System Integration (SI) & Solutions
The SI and Solutions business registered revenue of INR 404 Crore for the three quarters in the financial year with orders worth Rs. 81.24 Crores executed in the JFM 2016 quarter. The total order book size stood at INR 1,180 Crore as on 31st March’16. During the year, major Telecom and Power Projects were progressed towards commercial closure. The UIDAI project crossed the milestone of enrollment of more than 100 crore Aadhaars.
Awards & Recognitions during JFM 2016
HCL Infosystems won the “Operational Excellence Award” for Order Management Process at the National Quality Excellence Award in February 2016.
- HCL Care won Asia Retail Excellence award in the ‘Mobile and Telecom Service Category’ in February 2016.
About HCL Infosystems
HCL Infosystems is one of India’s premier IT Services, Distribution and Digital Solutions Company, enabling organizations attain and sustain competitive advantage by leveraging Information and Communication Technologies. It offers a comprehensive portfolio of capabilities spanning IT & System Integration services, digitally-enabled learning and career development solutions to value-added distribution of technology, mobility and consumer products. For more information, please visit us at www.hclinfosystems.in
Founded in 1976 as one of India's original IT garage start-ups, HCL is a pioneer of modern computing with many firsts to its credit, including the introduction of the 8-bit microprocessor-based computer in 1978 well before its global peers. Today, the HCL enterprise has a presence across varied sectors that include technology, healthcare and talent management solutions and comprises four companies - HCL Infosystems, HCL Technologies, HCL Healthcare and HCL TalentCare. The enterprise generates annual revenues of over US$ 7 billion with more than 105,000 employees from 100 nationalities operating across 31 countries, including over 500 points of presence in India. For further information, visit www.hcl.com
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