Company Press Release:
HCL Infosystems First Quarter Results JAS-08
Noida, NCR, India, October 23, 2008
Profit after tax reported for the quarter at Rs. 66.1 crores
The Board of Directors has declared quarterly Dividend of Rs. 2/- per share. The company has declared 100% quarterly dividend in last 14 quarters
System Integration a growth area for HCL. The company bagged over Rs. 700 crores worth of orders, during the first quarter.
Table of contents
· Results Highlights
· Overview
· Business Highlights for the quarter
· Employee Matrix
Results Highlights
The company has reported consolidated revenue of Rs. 3125.8 crores for the quarter ended September 30, 2008.
Consolidated services revenue for the quarter was Rs. 142.1 crores, a growth of 47% over the corresponding quarter of the previous year.
Consolidated profit before tax for the quarter was Rs. 96.0 crores.
Consolidated profit before tax & exchange rate impact (including unrealised impact on restatement at the period end rate) for the quarter was Rs. 112.5 crores as against Rs. 98.9 crores in the corresponding quarter of the previous year, a growth of 14%.
Revenue from Computer Systems business for the quarter was Rs. 875.9 crores as against Rs. 761.4 crores in the corresponding quarter of the previous year, a growth of 15%.
Profit before interest & taxes for Computer Systems business for the quarter was Rs. 47.6 crores.
Revenue from Telecommunication and Office Automation business for the quarter was Rs. 2257.1 crores.
Profit before interest & taxes for Telecommunication and Office Automation business for the quarter was Rs. 62.7 crores.
Consolidated EPS for the year ended 30th September 2008 was Rs. 3.9 per share.
The Board of Directors has declared quarterly Interim dividend of Rs. 2/- per share
(100 % on an equity share of par value of Rs. 2/- each)
Overview
HCL has built many core capabilities that make it unique and a leader in its field. Two years back HCL set in motion a process of transformation to leverage the emerging opportunities of tomorrow.
This
process of transformation has built up
momentum with HCL leveraging its core strengths by combining products and
services to build a system integration practice with vertical domain
specialization. The company today has established practices in the fields of
Telecom, e-Governance, BFSI, Power, Media & Entertainment, Retail, Health,
Airports & Ports & Railways and has added new sectors like Defence, Security
and Education to the list of existing SI verticals.
According to Mr. Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd “ICT infrastructure is no more an optional automation or efficiency enhancement device for enterprises. Today it has become an infrastructure that business and enterprises cannot do without. Information Technology is playing a much larger role in economic development. Going forward, our hardware business, distribution business and the system Integration business will provide resilience to the organization. We have built our system integration capabilities and have grown the business in diverse sectors. This will help in steady growth.”
Business Highlights for the quarter
ICT Hardware
It’s is a constant
endeavour at HCL to bring the best and the latest in technology to Indian
Customers. Yet again, HCL has been the first to introduce products based on
Triple Core AMD Phenom X3 8000 processor on the same day of its worldwide
launch. The HCL range of desktops based
on Triple Core AMD Phenom X3 8000 processor; provide gamers and
digital media enthusiasts with exceptional performance at mainstream price
points.
This quarter HCL also
introduced ‘MiLeap
MH04’
based on Intel Atom processor Technology,
an environment friendly RoHS compliant computing device targeted at
consumers, educational institutions and corporates. The ‘MiLeap MH04’ is an
exciting personal computing solution for frequent travellers for its light
weight and ability to deliver a complete computing experience on the move.
In the enterprise space
major orders were received to deploy
desktops, servers and networking products from the leading names
across industry verticals including
corporates, government, education and BFSI segments
In Imaging,
Voice & Video business HCL
registered very good growth in the Projector business. Major wins have come
from diverse sectors including financial institutions, state government,
educational institutions and defence.
The quarter also saw HCL wining a number of
AVSI solution orders from leading
multinational banks and corporates. This quarter saw the launch of E
Classroom solution to facilitate classroom learning. HCL also introduced
Toshiba home projectors
to address
the growing
Indian home projector market.
This
quarter HCL also saw wins to set up
videoconferencing solutions that came from the corporate and
government undertakings. HCL also bagged orders from hospitals and railways
to implement voice solutions.
Entering
new tie-ups HCL signed agreement with Oce of Netherlands & Konica Minolta
from Japan for high-end production printers. HCL also inked a pact with
Dassault and Aveva to provide virtual reality solutions. This
quarter saw HCL launch Vennfer desktop videoconferencing solutions that
provide convenient video conferencing solutions through personal computers.
This
quarter, HCL announced the launch of its exclusive, by invitation retail
program the ‘HCL PREMIER LEAGUE’.
This program aims to strengthen the relationship with retailers by working
closely with them in promoting HCL Leaptops and by offering a wide spectrum
of benefits & advantages that creates a unique value added proposition for
retailers.
The company
also received international recognition by Intel Corporation as it was
awarded ‘Intel Server and Storage
Innovation Award- Fall 2008 for
‘HCL Core Banking in a Box’
solution. Also HCL was awarded Best
Commercial OEM Partner for the Year FY08
by Microsoft.
Taking
forward its technology leadership in Retail segment IT Infrastructure, HCL
unveiled POS solution- HCL Ambience
PowerMate. With the ability to run off a truck battery this
solution is ideally suited for a mobile Retail outlet. It not only has the
capacity to work for 4-5 hours during power failures, it also has a small
footprint making it an ideal POS solution for the small and medium retail
outlets, including the “Mom & Pop’ shops. This quarter HCL also rolled out
its range of end-to-end retail business solutions which encompass, branch
roll out, total outsourcing, warehousing & CRM solutions.
The
HCL Exports vertical has seen
steady growth during the quarter. Besides growing the business in the
existing countries, HCL has extended its geographical reach to new countries
in Asia, Middle East and Africa.
System Integration and Services
Under HCL's System integration and services initiatives, this quarter saw the company winning and executing projects in a number of new solutions areas across sectors namely Railways, Infrastructure, eGovernance, Retail, Telecom, Media & Entertainment, Security, Banking, Finance, Securities and Insurance.
Demonstrating its headship in the Telecom System Integration space HCL bagged major orders this quarter from leading telecom NEP’s and a premier telecom player. One of the project under implementation is for 2G and 3G expansions of GSM network in India. This will facilitate expanded capacity for post paid customer billing for one of the large telecom companies in the country. Also under implementation is a project to build a high speed IP/MPLS network for a telecom company. The network will be deployed for convergent services, integrating data, voice and video to provide services like Internet bandwidth for ISPs, Corporate, Institutions, Government bodies and retail users.
HCL is implementing the GPS based transport solution including the data centres for the prestigious city bus service for the modern fleet of buses used for public transportation in the cities of Jalandhar, Ludhiana and Amritsar. In a first of its kind initiative by the Punjab government, HCL will provide the technology support. HCL also bagged a similar order for implementing Vehicle Tracking System for the public transportation city bus service of another metro.
This quarter also saw implementation of HCL Dial100 solution for the new Central Police Control Centre at Delhi. This modern control room consists of a state-of-art multimedia contact centre, with the capability to track the PCR vans fitted with GPS devices and coordinate their movement to assist the public.
This quarter HCL bagged the prestigious Highway Traffic Management System contract from an International infrastructure management company implementing a project in the country. HCL also won the contract to implement the Automatic Fare Collection System for the upcoming Metro rail transit systems in one of the major metros of the country. Yet another systems integration win in the Infrastructure vertical, was the contract to implement the Perimeter Security for one of the busiest International Airports in the country.
Highlighting HCL’s capabilities of providing diversified services beyond its core capabilities of ICT products and services, HCL announced a tie up in the Power system integration space with Echelon Corporation of US to bring Echelon's Networked Energy Services (NES) advanced metering systems to India. The tie up has strengthened HCL position as a leading systems integrator in the field of power.
HCL also bagged this quarter a contract from Railways to set up automatic ticket vending machines at 390 locations across the country. These Kiosks designed and developed by HCL will be deployed in northern Railway, Southern Railway, North Central Railway and Eastern Railway.
In the Media & Entertainment space HCL won the order to set up the FM studio for one of the leading national universities. HCL bagged another order from the education sector, a leading collage in southern India to set up the Community FM Radio Station. From the private media house segment HCL won the contract to set up the complete end to end infrastructure for an Infotainment TV channel based out of Hyderabad.
On the retail front HCL has bagged orders from leading dairy companies for its state of the art POS solutions that will be used for Milk collection. The solution will help automate the collection by determining the value, weight and quality of the milk procured. This solution will be implemented across the State of Uttar Pradesh.
In the BFSI space HCL has won the contract for implementing the Core Insurance solution including application, Infrastructure & services for an Indian joint venture of a leading Indian bank & a MNC Insurance Company. HCL will manage the project end to end.
This quarter HCL’s Internet & Networking Services Division also registered an impressive growth. Among the major orders bagged were orders from Leading PSUs, Corporate customers, and customers from the Banking, Airlines and Hospitality sector.
Digital Lifestyle Retail & Distribution
The digital lifestyle market is a growing at a tremendous pace in India and HCL's strategy has been to focus on offering a range of Digital Lifestyle products to the customers. With 73 stores across 54 cities with latest three additions being Kharagpur, Ludhiana and Bareilly, HCL Digilife stores offer consumers a complete digital experience.
Expanding its’ range of Digital Lifestyle products, the quarter saw HCL entering into new alliances with global brands like Nintendo consoles, Sandisk flash memory cards, Kingston DRAM & Philips MP3 accessories. HCL received a very encouraging response to these new alliances and recorded healthy growth of business from the new products added to its distribution portfolio.
The Nokia business continues to grow extremely well maintaining the high market share that HCL is very proud of. In addition, new strategies in accessories for Nokia phones were implemented generating extremely encouraging response.
ICT Education
HCL's education initiatives have grown its presence rapidly over the last quarter taking ICT education to the various corners of India. HCL today has 70 centres across the country.
Taking forward its Career Development Centres and as part of its Educational Institutions Alliance Program, HCL has launched K2 academy with an objective of bridging the gap between the demand and supply of industry-ready ICT professionals. At HCL K2 Academy the students will be offered training on contemporary technologies, projects and industry exposure through principal workshops by industry experts.
Awards & Recognitions
· Times Ascent Asia Pacific HR Congress felicitated Mr. Ajai Chowdhry, Chairman & CEO, HCL Infosystems Limited with the ‘CEO WITH HR ORIENTATION’ award during the Global HR Excellence Awards 2008-09.
· HCL Infosystems Ranked Top 3 for the Fourth Consecutive Year in the Best Employer Study by IDC-DQ 2008
· HCL was awarded the best iPod distribution partner for Apple for the 2nd year in succession.
· Star Communications Sector Sales Award for FY08 from Microsoft.
· STAR Solution Sales in Banking & Insurance Award for FY08 from Microsoft.
· Best Commercial OEM Partner for the Year FY08 from Microsoft.
· HCL received The Platinum Certificate of Excellence Award in August 2008 from HDFC Standard Life Insurance Co Ltd. in appreciation of its contribution & efforts towards continued success of HDFC SLI.
Employee Matrix
HCL Infosystems continues to invest in strong people management initiatives. The total employee strength is 5965 of which over 76% have specialized qualifications in science & technology fields.
HCL has been ranked among the top IT recruiters in the country for the fourth consecutive year by IDC DQ Best Employer Survey 2008. Employee engagement continues to be a key focus area with many initiatives organized during this quarter towards 'Celebrating Diversity' & encouraging appreciation for individual strengths. In response to modern day lifestyle changes, various programmes have been adopted to improve the wellbeing & fitness levels of employees
Sustained Environment Initiatives
HCL has always been focused in developing a sustainable future through environment friendly green computing. This led to introduction of Green desktops, equipped with the unique DES technology, that cut overall power consumption from 20-35%. 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 $ 3 billion (Rs. 12604 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.
For more information please visit us at www.hclinfosystems.inUTH
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. The 3-decade-old Enterprise, founded in 1976, is one of India's original IT garage start-ups. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises over 58,000 professionals of diverse nationalities, who operate from 19 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms.