- H1 performance was severely impacted due to Rupee depreciation
- Consolidated revenue reported at Rs. 2693 crores for the quarter
- Consolidated profit after tax was Rs. 35 crores for the quarter, a Q-o-Q growth of 187%.
- Revenue from Computer Systems business for the quarter was Rs. 712 crores
- Segment profits for Computer Systems business for the quarter was Rs. (6) crores, after foreign exchange loss
- Revenue from Telecommunication and Office Automation business for the quarter was Rs. 1980 crores
- Segment profits for Telecommunication and Office Automation business for the quarter was Rs. 41 crores (after foreign exchange loss)
- The Board of Directors has declared 50% quarterly Interim dividend i.e. Re.1/- per share of Rs. 2/- value. This is the 34th continuous quarter for dividends
Investor Pack for Q2 FY 2011-12 (.pdf file)
Unaudited Financial Results for the Quarter ended December 31, 2011 (.pdf file)
HCL Infosystems India’s premier ICT System Integration, Services, Hardware and Distribution Company today announced its financial results for the second quarter ending December 31st 2011.
Mr. Harsh Chitale, Chief Executive Officer, HCL Infosystems Limited, commenting on the results said, “Due to the ongoing challenging environment, business growth in this quarter has not been as per expectations. We have been affected like the rest of the industry on account of uncontrolled circumstances like rupee depreciation and natural calamities like floods in Thailand which has led to a scarcity of computer components and thereby impacted market availability and also increased costs. However we are committed to our journey of transformation and confident that persistent efforts through our company wide excellence program ‘Aspire’ will deliver results in times to come. Multiple steps are being taken for concrete realignments and synergies to shape our internal business processes and workings.”
Key Updates and Quarter Snapshot
In our enterprise business segment –
- Government segment, which forms significant part of our enterprise business, continued with the trend of delay in decision making & slowdown in spending, impacted the company’s performance. On the other hand company’s focus on ramping up the non-Government verticals, especially corporate sector (IT-ITES, Pharma, BFSI, etc) and Small & Medium businesses, yielded positive results with Y-o-Y growth in sales from these segments
- Services business comprising of Life cycle services & Infrastructure Management services continued to perform well, growing at 10% sequentially
- There was also an impact due to continued rupee depreciation Rupee depreciated by nearly 19 % during the first half of the current financial year. The company recorded an accounting loss of Rs 12crores on this account during the quarter. Additionally, the rupee depreciation also resulted in contraction of margins where orders were accepted in earlier periods. The company, as a result of steep rise in forex rates, had to refuse/defer certain orders which would have added to our revenue & profitability. As a result of the above, the overall estimated impact on company’s margin due to for-ex fluctuation was Rs. 48 crores during the quarter & Rs. 80 crores during the first half of FY12.
- We expect this situation to stabilize in January to March 12 quarter, as the market prices are expected to start reflecting increase in costs
- Due to recent floods in Thailand, Hard disk drives were in short supply resulting in price of this key component firming up by nearly 50%.The HDD supplies are expected to stabilize starting April 2012, till then prices are expected to stay firm
- These factors have severely impacted revenue & profitability in our Computing & Office automation business during the quarter gone
- Despite above factors some of the key successes included –
- Core Banking, Infrastructure and Financial Inclusion solutions from multiple banks
- Multiple orders from institutions like Corporation Bank, Dena Bank, UCO Bank, Central Bank of India and Himachal Pradesh State Cooperative Bank Ltd. (HPSCB)
- The company has also been empanelled with the National Federation for Urban Co-Op Banks and Credit Societies (NAFCUB) for roll out of core banking solution to urban co-operative
- The company has been awarded some key infrastructure projects including implementation of 22 Automated, Computerised and Integrated Border Check Posts (BCPs) in the State of Maharashtra. New technologies such as a RFID Solution for AVI (Automatic Vehicle Identification) will be implemented in this project
- The company bagged significant orders from organizations like BHEL and Asian Paints for supply of IT equipment
- In the Defense segment the company won a major network expansion project from one of the armed forces. The implementation involves Design, Planning, Engineering, Supply, Installation; Testing & Commissioning of MPLS based IP Network
- In the Healthcare segment the company also won the cloud based New Health Insurance project in Tamil Nadu
- Office Automation Business, won various orders from SBI (All India); LIC Mumbai, Ericsson Global, Delhi, Reliance General Insurance, ABB among others
- HCL Learning had some major wins in Digischool and for its Language Labs. Also the business implemented new technologies for customers like its IMS (Institute Management System), which is a cloud based ERP for educational institutes
- HCL Infosystems MEA, company’s subsidiary based out of Dubai added new customers like Federal Electricity and Water Authority (FEWA), Dept. of Finance, (Abu Dhabi), Saudi American Bank (SAMBA), Sharjah Municipality, Qatar Islamic Bank(QIB) and Qatar International Islamic Bank(QIIB)
- The Consumer Computing Division launched the exclusive Ra.One Series of laptops which included HCL ME ICON 1034, XITE 2025 & XITE 2035. The Ra.One High definition Laptop series was power packed to give consumers an exhilarating on the go cinematic experience this festive season.
Awards and Accolades
- HCL Learning was awarded the prestigious eIndia Jury Choice Award for its Xcelerate program in the Best Open and Distance Learning Practices in Higher Education category
- The company regained the second spot for the Greenest companies as per the Greenpeace Survey – Guide to Greener Electronics, November 2011. The company scored well for its GHG emission levels from its entire operations, energy efficient products, hazardous substance free products and sustainable operations
- The company’s Pondicherry plant won an award in the large scale category of the FICCI Quality System Excellence Awards 2011
About HCL Infosystems
HCL Infosystems Ltd, with revenue (LTM) of US$ 2.4 billion (Rs.10,901 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
HCL is a $6.2 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 and a transformational enterprise, HCL’s diverse range of hardware and software offerings span a wide array of focused industry verticals. The HCL team consists of 88,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. For more on HCL, please visit www.hcl.com
