HCL Infosystems reports Rs 228.72 crores turnover in Q1

New Delhi, October 16, 1999

At a Board Meeting, HCL Infosystems Limited (HCL Insys), India's premier information technology (IT) company announced its unaudited first quarter financial results ended September 30, 1999. The company has reported a net profit before tax of Rs 16.7 crores on a turnover of Rs 228.7 crores. The corresponding figures for net profit before tax and turnover for the same period in 1998-99 were Rs 12.5 crores and Rs 207 crores respectively.

Net profit after tax for the quarter ended September 30, 1999 is reported at Rs 15.1 crores.

The turnover of the company during the previous year ended June 30, 1999 was Rs 950 crores and the operating PAT reported was Rs 58.52 crores.

Underlying the Company's Q1 results is its focused strategy for the electronic commerce and Internet infrastructure sectors. The Company's Net strategy has been specially developed to address the infrastructure imperatives in this sector and will enable HCL Insys to take the dominant position in building world-class e-commerce enterprises. During fiscal 2000, HCL Insys has reoriented and refocused its strengths in domain knowledge and business understanding of a cross-section of industries and wide-ranging resource base to achieve critical expertise in e-commerce infrastructure.

The Company has also integrated its skills in complex networking, network management, security and post-implementation facilities management with strategic alliances in SAP, CRM and SCM/integration. Recently, HCL Insys formed an alliance with Bunka Orient India (BOI) to market and implement an electronic Customer Relationship Management (eCRM) software, Pivotal Relationship, developed by Canada-based Pivotal Inc.

Speaking on the occasion, Mr Ajai Chowdhry, President & CEO, HCL Infosystems Ltd, "The tremendous potential of e-commerce provides HCL Insys a highly advantageous platform for leadership and maximises our existing expertise. Moreover, the high margins in e-commerce will enable us to map out a long-term and sustainable growth path.

"Beginning in last year, we reoriented our entire hardware and services portfolio towards 'web-enabling' the enterprise. With this, we are confident of establishing ourselves as the most preferred provider of all e-commerce infrastructure services during fiscal 2000."

The Company's continues its emphasis on the entire spectrum of IT services, and is fast increasing revenues from its services portfolio. In fiscal 1999, HCL Insys' performance witnessed an increased revenue contribution of Rs 161.4 crores from services. The company aims to grow this revenue by 35-40 per cent in fiscal 2000.

HCL Insys continues to dominate the branded PC segment with a 12.9 per cent market share, more than that of all three of its nearest competitors--Compaq with 5.6 per cent, IBM with 3.6 per cent and HP with 2.6 per cent--put together.

HCL Insys as a leading technology integrator, offers its customers technology solutions across platforms. This is the result of its expertise in developing state-of-the-art enterprise solutions; understanding of networking technology; its design capabilities in product engineering; integrating diverse hardware components and its access to specialised technology for turnkey projects through partnerships with various world class players.

With a definite and distinct focus on enterprise solutions and personal computers, HCL has direct customer support centres at 143 location and state-of-the-art manufacturing facilities. With a mission statement to provide world class information technology solutions and services to enable its customers to serve their customers better, HCL Insys is setting new standards of information technology in India.