Consolidated Services revenues grow by 61% as per US GAAP

New Delhi, October 18, 2000

HCL Infosystems Limited (HCL Insys), India's premier information technology (IT) company announced its unaudited financial results for the first quarter ended September 30, 2000. The company has reported a net profit before tax of Rs 21.2 crores ( US$ 4.67 mn) on a turnover of Rs. 294.7 crores ( US$ 64.91 mn). The corresponding figures for net profit before tax and turnover for the same period in 1999-2000 were Rs. 16.7 crores ( US$ 3.68 mn)and Rs.228.7 crores ( US$ 50.38 mn)respectively. Net profit after tax for the quarter ended September 30, 2000 is reported at Rs. 19.2 crores ( US$ 4.23 mn). The highlight of this quarter was the company's consolidated services revenues as per US GAAP which grew by 61% to Rs. 69.6 crores ( US$ 15.33 mn)from Rs. 43.1 crores ( US$ 9.49 mn)in the corresponding quarter previous year.

The turnover of the company during the previous year ended June 30, 2000 was Rs 1136 crores ( US$ 250.26 mn)and the PAT reported was Rs 73 crores ( US$ 16.09 mn).
( Conversion rate : 1 USD = 45.40 INR )

The Company's Q1 results reflect its focused strategy for stepping up its software and services exports revenues while maintaining its leadership in the domestic products and solutions business. The Company has been working on its Net strategy over the 15 months and is now beginning to leverage the consolidation of its skill-sets and resources around the internet. As in the previous fiscal, the company is targeting high value, long term software and services projects in global markets especially in the internet related areas.

Speaking on the occasion, Mr Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd, said "This year we are going all out to boost our software and services exports business, having dramatically augmented our overseas sales and marketing infrastructure". "We have added Australia to our existing overseas operations and made significant investments in acquiring new software solutions skill-sets that are critical for the net economy". Mr. Chowdhry added.

The Company has added new skill sets such as IBM Websphere, BEA Weblogic and Tuxedo, Broadvision B2B technologies, Pivotal CRM and i2 SCM technologies. The resurgent SAP services market worldwide has also thrown up opportunities for the company, that has a strong SAP practice. In fiscal 2000, HCL Insys' performance witnessed an increased revenue contribution of Rs 209 crores from services. Based on the strong growth shown in this quarter, HCL Insys expects this to grow robustly. In the overseas market, HCL Infosystems added several new customers this quarter for software development projects. These include a product development and maintenance assignment for a construction project management software company in the US. The company also bagged an offshore cum onsite project in the US involving CTI server technology for replacement of IVRs and another project from a US based Document Management company for a web-based document delivery system. In Singapore, the company is involved in a Broadvision B2B solutions implementation project for an internet company and is also working with the Singapore government for a Datawarehousing solution implementation project. In Malaysia, HCL Infosystems has bagged a project for developing a web based tendering and project management system. In the domestic market the company is working for IFFCO for developing its HR / Payroll and Marketing Management Information Systems. Besides, HCL Infosystems is also engaged in several long term projects, garnered earlier such as Rightworks in the US, Singapore Mass Rapid Transport Corporation in Singapore, Pernec and Lityan Holdings in Malaysia and IBM and Alcatel in Europe.

In India, HCL Infosystems garnered several prestigious projects for Networking and Facilities Management. Its major Networking Services customers included Sun Pharma, BRPL, Asian Age, Asian Paints, Godrej & Boyce and Hindustan Times.
For its Products and Solutions business, HCL Infosystems continued to leverage its strong customer relationships and muti-locaton project implementation skills to garner robust business from organizations such as Fascel, Philips, Veritas, Lucent, Wipro, Infosys, Unicef, HPCL, Bajaj Auto, Air India, BPLNet, General Motors, 123india.com, Polaris Software, Xerox Modicorp, Comptroller & Auditor General of India, Tamil Nadu Electricity Board, UIIC, DOT, State Bank of Travancore, Indian Airlines, Eastern Air Command, Ministry of Defence, NIC, ELCOT, , United Bank of India, Indian Bank, and Andhra Bank among others.

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 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 Infosystems (HCL Insys) has direct customer service centres at 143 locations, 6 software export factories and a state-of-the-art manufacturing facility. HCL Insys has five overseas business entities in US, UK, Australia, Singapore and Malaysia. 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.