Loss after tax reduced from INR 84.6 Crore (excluding goodwill impairment of INR 70 Crore) in previous quarter to INR 35.7 Crore in Q1 FY17
Enterprise Business delivers positive momentum with 3% Q-o-Q growth
New Delhi, July 30, 2016:
Quarter Highlights
· Q1 Revenue at INR 1,148 Crore, growth of 7% Q-o-Q
· Loss before finance costs, exceptional items and tax is INR 1.4 Crore as against INR 24.5 Crore in Q3FY16
· Loss after tax reduced from INR 84.6 Crore (excluding goodwill impairment of INR 70 Crore) in previous quarter to INR 35.7 Crore in Q1
· Enterprise Business revenues at INR 573 Crore on back of continued focus as against INR 556 Crore in previous quarter; this business contributes 50% to the company’s revenue
· Consumer Business revenue at INR 472 Crore; marginal increase of 4% Q-o-Q
Note - The Indian Accounting Standards (Ind-AS), as notified under the Companies (Indian Accounting Standards) Rules,2015, are applicable to HCL Infosystems Limited for the accounting period commencing from April 1, 2016.
HCL Infosystems, one of India’s premier IT Services, Distribution and Digital Solutions Company, today announced its financial results for the first quarter ended June 30, 2016.
Mr. Premkumar, Executive Vice-Chairman and Managing Director, HCL Infosystems Ltd., commenting on the results said, “Our continued thrust and investments in the Enterprise business has resulted in robust growth for the fourth quarter in succession. The mobility business also showed a positive trajectory in this quarter, together the same has enabled improved profitability. Key SI projects in Defence dedicated to Nation would result in formal commercial closure.”
Enterprise Business
The core Enterprise Business (consisting of Enterprise Products Distribution, Domestic Enterprise Services, Global Enterprise Services and Care Services) continued on its growth path and is the engine for the Company’s next level of growth. Enterprise Business Revenue for Q1 FY2017 was at INR 573 Crore, up 3% from last quarter.
The Enterprise Business once again clocked sequential growth in revenue. The GTM of an integrated products and services portfolio is creating good traction apart from bringing in cost synergies.
The Global Services business continued to register growth in revenue and profitability. The Singapore business acquired new clients for prestigious projects in Networking, Security solutions, Data Centre & Cloud Solutions.
Consumer Business
The Consumer Distribution business recorded a marginal 4% increase in Q1 revenue over the last quarter. The business was buoyed by 13% growth in Entry Category both in Value and Volume. The business expanded its retail reach by over 20%, thus strengthening its touch points.
System Integration (SI) & Solutions
The SI and Solutions business registered revenue of INR 122 Crore in Q1 FY2017, with orders worth Rs. 80 Crores executed during the quarter. The total order book size stood at INR 1100 Crore as on 30th June’16, which largely comprises of annual maintenance and managed services contracts. The UIDAI project crossed the milestone of enrollment of more than 102.5 Crore Aadhaars. The prestigious Defence Communication Network (DCN) Project was dedicated to the nation.
Awards & Recognitions during April-June 2016
HCL Services won the award for “Best Use of Lean Six Sigma: Field Services in IT” at World Quality Congress Conference for significantly improving Customer Experience for a leading multi-national OEM.
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; follow HCL Infosystems on Twitter at @HCLScribes
About HCL
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