HCL Infosystems Q3 profits grows to Rs 18.2 cr ( US$ 3.92 mn )

The Company celebrates 25 years of consistent growth

· The company recorded a turnover of Rs. 336.2 crores (US$ 72.52 mn)as against Rs. 318.2 crores ( US$ 68.65 mn) in the corresponding quarter of the previous year.
· The profit after tax is Rs. 18.2 crores ( US$ 3.92 mn)as against Rs. 16.2 crores ( US$ 3.50 mn) in the corresponding quarter on the previous year.
· The company's total revenue in the nine month period ended March 31, 2001 has shown a growth of 14% wherein revenues have touched Rs 916.4 crores ( US$ 197.71 mn) compared to Rs.803.6 crores ( US$ 173.36 mn) in the corresponding period of the previous year.
· Consolidated services revenues increased by 49% from Rs.146.3 crores ( US$ 31.55 mn) to Rs. 218.0 crores ( US$ 47.04 mn)taking the percentage of service business to 22% of total revenues.
( Conversion rate : 1 USD = 46.35 INR )

New Delhi, April 18, 2001

HCL Infosystems Limited (HCL Insys), India's premier technology integration company, today announced unaudited financial results for the third quarter ended March 31, 2001. The company prides in presenting this quarter's results, especially since it marks the completion of its 25 years of solid growth in the technology integration business. Over the last decade, the company has managed a very good blend of its hardware, networking services and software services business. The company reflects back on its de-risked business strategy of spreading the domestic and exports businesses that position it comfortably apropos competition today.

Ajai Chowdhry, Chairman & CEO, HCL Insys said, "This is a result of 25 years of dedicated efforts by our people that we are now leading the industry in technical excellence and service capability. Our strategy of spreading services revenues between India and exports has proven correct. Again, the strategy of spreading overseas revenues between Asia Pacific, USA and UK has helped. I would also like to make a special mention of our growth this quarter due to additional domestic services added to our portfolio this year. Also, our Asia Pacific revenues have grown extremely well". "Finally, our business approach as technology integrators is being understood by customers. We have seen our domestic, cross segment enterprise systems sales and services and software services exports grow significantly. This year, I foresee better results in the Infocom business as well. We've started celebrating this silver jubilee with solid Q3 results," Ajai added.

The company bagged a major networking order from Indian Overseas Bank involving implementation of wide area network (WAN) in 11 cities covering 200 branches. Insys won 3 contracts of Consultancy for Call Centres in India. The corporate PC sales witnessed some huge orders coming to Insys from various segments like Banks (including that of PNB and Bank of Rajasthan) and from education (including Karnataka schools). The company also bagged some large orders in its Notebooks business from Infosys, PWC and E&Y.

HCL Infosystems, which has a range of home computers under the Beanstalk, Busybee line, entered into a strategic alliance with ICICI to provide low cost finance options for its range of desktop computers. This has helped boost the company's sale in the fast growing home segment. In the same month, it also launched Ericsson's wireless local area network (WLAN) and IP communication solutions in the Indian market.

This quarter, Insys has seen robust growth. An order worth $2.7 million from Cisco, Singapore for the implementation of enterprise wide resource planning system, an offshore development centre (ODC) for Stratech Systems Limited, an information technology systems developer based in Singapore; And an offshore development centre for a US HR benefits company, a Workflow order from a large insurance company in Singapore, an E-procurement project for a large company involved in developing for the Malaysian government, a strategic tie-up with Intel to launch an e-business solutions programme was notable.

About HCL Infosystems:

HCL Infosystems (HCL Insys), a technology integrator, offers its customers technology solutions across multiple platforms. This is as 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 Infosystems (HCL Insys) has direct customer service centres at 151 locations, 3 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 recently set up an Internet subsidiary called HCL Infinet Limited that will provide 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.