HCL Infosystems Q2 results show strong performance in service revenues

41% growth in consolidated Service revenues

HCL Infosystems Limited (HCL Insys), India's premier information technology (IT) company announced its unaudited financial results for the second quarter ended December 31, 2000. The company has reported a net profit after tax of Rs 17.5 crores ( US$ 3.79 mn) on a turnover of Rs. 283.0 crores ( US$ 61.28 mn). The corresponding figures for net profit before extraordinary income for the same period in 1999-2000 was Rs.16.7 crores ( US$ 3.61 mn), on a turnover of Rs.255.3 crores ( US$ 55.27 mn). Net profit after tax for the six months period ended December 31, 2000 is Rs. 36.7 crores ( US$ 7.95 mn).

The highlight of this quarter was the company's consolidated services revenues which closed at Rs. 76.6 crores ( US$ 16.58 mn), taking first half services to Rs.146.1 crores ( US$ 31.64 mn), a 50% growth over the corresponding first half in the previous year. Further, the percentage of consolidated services revenue to total revenue during the first half is 23%.

The turnover of the company during the previous year ended June 30, 2000 was Rs 1136.2 crores ( US$ 246.03 mn)and the PAT reported was Rs. 73.1 crores ( US$ 15.82 mn).
( Conversion rate : 1 USD = 46.18 INR )

HCL Insys' Q2 results reflects a robust growth in the software and services export business through its five overseas subsidiaries in US, UK, Singapore, Australia and Malaysia with most of the projects being web-centric, high value assignments and involving knowledge of diverse technologies. The company continues to be a market leader in the domestic products and solutions market.

Speaking on the occasion, Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd, said, "HCL Insys results have reflected a steady growth in profits. Over the years we have been successful in defining our business model to achieve our financial goals. This quarter, we have further reinforced our strength in Total Technology Integration specially in the services business worldwide."

During the quarter, the company's software and services export business received a major boost. Some software development projects it is executing are web development and maintenance for a premier Australian Asset Management Company; developing a complex vertical portal with digital downloadable music for a leading Media Company in Singapore; e-governance project on Electronic Bill Presentment and Payment (EBPP) for the Malaysian Government; portal and system development for portal interface through Palm pilot device for a leading service company in Australia; design and implement Corporate Electronic Banking Software for a leading internet banking software development company; providing Datawarehousing solution and Executive Information System for a key player in health and insurance in Malaysia; developing an e-marketplace for providing IT services for a Norwegian company; automating the largest bank in Malaysia across its entire network of branches etc. HCL Insys is also engaged in several long term projects garnered earlier.

During the second quarter, there was a spurt in domestic services business. The company was involved in several prestigious projects for Facilities Management, Networking Services , Virtual Private Network, Security Services, Call Centers, Voice Data Networking, Workflow Applications, Mobility Solutions, Interactive Voice Response etc. HCL Insys was awarded several orders for Facilities Management, Networking, Anywhere Banking Solution - from a leading bank worth 6.7 crores , a large pharmaceutical company, a leading Airline, a large elevator company etc. The company has also successfully designed and implemented 'Anywhere Banking Service'. It has also established its leadership in Networking Consulting .
Domestic products and solutions business remains an important component of the Net.Strategy while developing world class e-commerce infrastructures to provide a complete spectrum of IT services. This is reflected by the fact that HCL Insys bagged the Award for Top PC Vendor in India and is also recognized as the Top IT Group of the country during the Dataquest Awards. The company is strengthening its partnership with leading global corporations like Hewlett Packard, Microsoft, Oracle, Intel, SAP, Toshiba, Novell etc and recently it has tied up with Unisys for ES7000 range of servers and associated hardware and middleware for high end and new market for Insurance etc. HCL Insys also offers Mainframe class server computing on Intel with Microsoft Windows 2000 Data Center.

With an increase in projects and clients during the last quarter, the company is continuously expanding its software and services manpower resources for its export and domestic services and enhancing their skills regularly.

HCL Insys' business can be broadly classified into software and services export, domestic services business, domestic products and solutions and internet services. The company's software and services exports have shown a continuous upward trend. The company has maintained its leadership in the Domestic services, products and solutions.

The software and services business broadly includes IT Consulting, Systems Integration, Software Development, Migration Consulting, E-commerce Services, portal/website development, B2B and B2C Applications, end-to-end Services for ISP's. Other services provided are Facilities Management, Networking Services, network Support Services, System Integration, System Software Support , Disaster Recovery Support etc. Communication solutions and Infocom Services are also provided including Call Centers, Voice Data Networking, Interactive Voice Response etc. HCL Infosystems has in-depth expertise in developing solutions spanning diverse platforms like Microsoft e-commerce technologies, IBM Websphere, BEA Weblogic, Broadvision, and e-procurement.

HCL Infosystems, 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 143 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.