HCL Infosystems' consolidated services grow to Rs. 285 Crores (US$ 61.28 mn)

Consolidated sales of subsidiaries grew from Rs. 56 crores ( US$ 12.03 mn )to 162 crores ( US$ 34.78 mn)

New Delhi, August 20, 2001 - HCL Infosystems Ltd (HCL Insys), India's premier Information enabling company today announced the audited results for its financial year ended June 30, 2001. Company reported net profit before tax & extra ordinary items of Rs 76 crores (US$ 16.30 mn) on a turnover of Rs. 1162 (US$ 249.75 mn)crores for the full year. ( Conversion rate : 1 USD = 46.54 INR )

The company also recorded 36.3 % growth in the consolidated services revenue to Rs.285 crores (US$ 61.28 mn) resulting in gross services being 22.6 % of the consolidated revenue.

Total consolidated revenues grew to Rs. 1265 crores (US$ 271.71 mn) from Rs. 1171 crores (US$ 251.59 mn) in the previous year , an increase of 8.0 %.
EBITDA generated during the year was Rs.90 crores (US$ 19.35 mn) or 7.7 % of the revenue . Net profit after tax & before extra ordinary items closed at Rs. 69 crores (US$ 14.82 mn).

During the previous year, the company's turnover and PAT were Rs.1125 (US$ 241.71 mn)& Rs.73 crores (US$ 15.70 mn) respectively.

The company has significantly improved its cash position over the past 2 years. Cash & liquid investments as on 30th June 01 totals Rs. 161 crores ( US$ 34.69 mn), being 37.3 % of total assets .

The Board has recommended a dividend payout of 70%, subject to approval of the members at the annual general meeting scheduled to be held on 19th October 2001.

Speaking on the occasion, Mr Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd, said, "This year, we were challenged by the winds of slowdown, which swept the world over, and particularly in the last quarter in India. Comparatively, I believe that we have definitely fared well and this is largely due to our de-risked business strategy. In the 25 years during which HCL has partnered India's IT growth, we have seen some tough times. During these, it has been our strength in being able to identify opportunities and capitalize on them. Our understanding and insight into the Indian market, along with our vast management experience, has informed our ability to put in place the required strategic intent to leap forward."

Software Services Business
HCL Insys further consolidated its software and services exports business, which has shown a steady growth this year as well. The company capitalized on its investments in building e-business capabilities through its Professional Services Organisation (PSO). The PSO executed projects in various areas like SAP implementation, SAP maintenance, e-business, custom development etc., using latest technologies for customers in USA, UK, Singapore, Australia and Malaysia.

Some of the major projects handled by PSO this year include:
· Malaysia: A project involving electronic bill presentment and payment; a project enabling European consulting companies to search software partners in Asia and to monitor project execution through the web; a project on Internet banking, feasibility study and implementation of a data warehousing solutions for a large metro rail operator; a project for implementing Trade Bills and Accommodation application, based on workflow technology with integration with back-end mainframe systems; a data warehousing solution implementation; implementing an Intranet solution; an Information System Planning project; an electronic billboard display management system; a requirement study for web-enabling the operations of a leading travel agent; consultancy and development of an ASP-enabled accounting application.

· France: ABAP based development for a global rollout.

· UK: A project for development / implementation of an assessment and exam system and a sales order processing system for a major international qualifications awarding body; an onsite support project for ABAP-based development.

· Australia: Setting up a dedicated portal for supply of focused information to palmtop users; a project for development of a dedicated portal for providing asset management information to clients and agents.

· USA: Development and maintenance of software products for e-procurement and Open Commerce and development and maintenance of ASP solutions for human resources and employee benefits; a project for development of tools to interface with registration/ certification authorisation systems; a project for testing services for an ASP-based accounting application.

· Singapore: Feasibility study for a claims settlement system using workflow technology; a project for Business Process Innovation & Information Strategy Planning, followed by SAP implementation for Cisco; SAP implementation for Singapore's apex mass transit corporation; a project for implementing B2C portal for an artefact retailer, using Broadvision technology.

· India: Personnel Information System and Marketing MIS development for all the offices/ factories of IFFCO and SAP implementation projects.

Domestic Hardware & Services Business
The company maintained its leadership in the domestic hardware and services business with major orders and new initiatives. It bagged a large networking order from Indian Overseas Bank involving implementation of Wide Area Network in 11 cities covering 200 branches during the year.

Corporate PC sales witnessed growth, with large orders from various industry segments and banks such as the Punjab National Bank and Bank of Rajasthan, and from the education sector.

The company's packaged software and ERP solutions also witnessed impressive growth. HCL Infosystems also added several new and prestigious clients to its portfolio, including LG for VPN services, BSES for EMC Storage Solutions, Electrolux and Marico. The company also entered into an alliance with ICICI to provide low cost finance options for its entire PC range on a national scale.

Other major developments during the year include the launch of the wireless-ready, Bluetooth-enabled Toshiba Notebook Computers to provide anytime-anywhere facility to users. The eBeanstalk range of PCs, which is the most economically priced range in the home PC segment in India, was also launched this year. Targeting the home segment, HCL Insys also launched the ezeeBee, a consumer-friendly, low-priced Internet device.

HCL Infosystems also opened an e-tailing outlet, www.ehclstore.com, featuring all the products of the Frontline division, including, among others, HCL computers, Toshiba Notebooks, printers, scanners, cameras, cartridges, and Nokia cell phones.
The company launched innovative programmes like the Employee Purchase Programme, Teachers' Programme and Education@Value for consumer market development. The company also expanded its distribution network to become the largest Hardware Vendor with more than 75 distributors in 42 POP/locations and more than 1000 sales outlets.

Infocom Business
The year saw the company enhance its presence in its core business of imaging and telecom. New business initiatives included call centre consultation, in which area HCL Insys has already bagged three prestigious orders in setting up Virtual Private Network (VPN) services and the launch of Pitney Bowes Digital Mass Mailing Systems in India.

The company also expanded its operations internationally, launching operations in Bangladesh in September 2000. Major orders were bagged in Bangladesh, including a call centre order from Dhaka based Internet service provider.

Besides, several breakthrough multi location orders were bagged from Indus Industrial Bank, HDFC Standard Life, ICICI, ITC etc. Citibank, MTNL, Cisco, ITC, HDFC, ISRO, BEL and ITI also enhanced their sourcing from HCL Insys.
In the digital copiers segment, HCL Insys won the prestigious award for copier sales -Toshiba Gold Cup for Sales & Marketing for the year 2000-2001. The company's market share in copiers has also improved. The company has launched the e-Studio series of Digital Multifunction Systems from Toshiba to further consolidate its position. Besides, breakthrough orders were received from Citibank, MTNL, Cisco, ITC, HDFC, ISRO, BEL and ITI etc.

Quality Initiatives
HCL Infosystems continued on its quality journey this year with the SEI CMM Level IV accreditation, for its software development processes and the ISO 9001 certification for its manufacturing processes. The company has recently been awarded the MAIT Level II recognition for business excellence.

About HCL Infosystems

HCL Infosystems (HCL Insys), an information enabler, offers its customers information technology solutions across multiple platforms. This is a result of its expertise in developing state-of-the-art indigenous enterprise solutions; understanding of the networking technology; its design capabilities in product engineering; integrating diverse hardware components and its access to specialized technology for turnkey projects through partnerships with various world class players.

With a definite and distinct focus on enterprise solutions and personal computers, HCL Insys has direct customer service centres at 151 locations, three software export factories and a state-of-the-art manufacturing facility. HCL Insys manufacturing process are ISO 9001 certified, while its software development processes have achieved SEI CMM Level 4. The company has set up an Internet subsidiary called HCL InfiNet Limited that provides value added Internet services in the B2B and B2C areas. 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.