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  • Revenue from Computer Systems business for the quarter was Rs. 854 crores (USD 190 Mn), taking the revenue for the year to Rs. 3691 crores (USD 822 Mn)
  • Revenue from Telecommunication and Office Automation business for the quarter was Rs. 1768 crores (USD 394 Mn), taking the revenue for year to Rs. 7805 crores (USD 1739 Mn)
  • Strong free cash flow generation from operations of Rs. 131 crores (USD 29 Mn) in the quarter
  • Board of Directors declared 100% quarterly final dividend. This is the 32nd continuous quarter for dividends
  • HCL Infosystems and Nokia have enjoyed a long and a fruitful partnership. The two companies have signed agreements on Aug 12th 2011 to extend their distribution relationship for Nokia devices. The devices agreement would come up for renewal again on December 31st 2014

Investor Pack for Q4 & FY11 (.pdf file)          

Audited Financial Results for the Year ended 30th June ’11 (.pdf file)


 HCL Infosystems India’s premier ICT System Integration, services, hardware and distribution company today announced financial results for its quarter ending June 30th 2011 and financial year ending 2010- 2011


Mr. Ajai Chowdhry, Founder HCL and Chairman, HCL Infosystems Limited, commenting on the results said,“The economy at large has been going through a difficult phase with both enterprises & consumers being cautious in decision making and discretionary spends. Inflationary pressures leading to aggressive interest rate escalation has also played an integral role in slowing down the economy and the desired growth momentum. Led by a volatile environment in the country today, the capacity expansion in most sectors has momentarily taken a back seat with IT sectors like System Integration, IT product and Services been affected in the domestic markets with the slow Government project execution and decision process. But I see this having only a short term impact, as with the emerging broadband ecosystem, leading to technologies like cloud services, mobility and steps taken by the Government with the new Electronics policy and focus on R&D, have great potential to be big growth drivers in the long run. As HCL Infosystems begins its new year, I am confident that our rigorous execution plans will show results and build a strong organisation over the next 2-3 years for the future.”


Mr. Harsh Chitale, Chief Executive Officer, HCL Infosystems Limited, commenting on the results said, “As we had indicated last quarter, Systems Integration business continued to be severely impacted by slow down in projects and customer decision cycles. On the other hand the recently inducted businesses like Learning more than doubled and we also did exceedingly well with successfully establishing presence in new growth areas such as remote services and emerging markets in Middle East and Africa. HCL Infosystems has embarked on a transition phase and with the companywide business excellence program currently underway, we are putting relentless efforts to re-align the organisation to drive cost and working capital efficiencies and to re-position it for future growth opportunities. Over the next 12-15months we expect these efforts to result in terms of bottom-line as well as cash flow performance.”


Snapshot of the Quarter

  • In the previous quarter release, we had stated that System Integration business was adversely impacted by the delays, and that it may continue over a few quarters. During the quarter ended 30th June 11, we continued to see delays in projects in the verticals where we have a significant presence. This has severely impacted the results of the quarter by way of:
  • Delay in release of payments by our customers resulting in increased borrowing costs, provisions on account of receivables due to delay.
  • For projects under implementation, delays in achieving milestones have lead to delay in revenue recognition whereas the company continues to incur costs resulting in cost overruns on projects.
  • Delay in release of fresh orders which were expected to be won impacting revenue growth
  • Considering the current environment, with likelihood that delay in projects may continue for some more time, we anticipate that there could be some additional cost impact on the projects business of the company. Hence we are reviewing the possible impact project by project and discussing the same with the customers and the vendors. We shall finalize this assessment by end of Q1 FY 2011-12
  • During the quarter, bagged various orders from leading banks like Syndicate Bank, Punjab Sindh Bank etc to undertake Financial Inclusion mandates including banking for the unbanked, UIDAI enrollment across the country apart from other deployments for UIDAI
  • Company is now carrying a significant order book of long term contracts where revenue would be recognized over 5-10 years based on periodic or transaction based billing. However they will take time to reflect in the performance due to a billing gestation period spread over next 2-3 quarters
  • The company’s banking system integration solution BancMate CBS had multiple successes along with deployment across 190 branches of Himachal Pradesh State Cooperative Bank (HPSCB) and bagging  other prestigious orders across rural banks Prathama bank sponsored by Syndicate Bank having 212 branches, Rajasthan Gramin Bank (RGB) is the Regional Rural Bank of Punjab National Bank having 210 branches, Vananchal Gr. Bank is the Regional Rural Bank of State Bank of India with around 1300 villages, Shreyash Gr. Bank is the Regional Rural Bank of Canara Bank intends to provide Financial Inclusion Services to 534 villages, Madhya Bihar Gr. Bank is the Regional Rural Bank of Punjab National Bank with around 416 Branches
  • HCL Learning, the education and training division on the company recorded growth of over 103% YoY for the quarter and a growth of 160% YoY for the year ended June 2011
  • Over 3100 classrooms have been signed up for the DigiSchool Solution of this business. This division also launched an innovative program called ‘Xcelerate’ for Test Prep Coaching into Schools through interactive distance learning across the country and other introductions included Language Labs
  • Company’s subsidiary, HCL Infosystems MEA posted 40% growth YoY in its revenue to $31.74 million, for the year ended 30th June 2011 in its first year of operations
  • The Office automation business recorded YoY growth of 14% for the year ended June 2011
  • HCL Cloud Services ‘Ozone’ added 6 new offerings this quarter including Cloud Mail, Cloud IaaS (IT Infrastructure As A Service), Cloud HRMS (HR Mgmt System), Cloud Backup as a Service, Cloud Storage as a Service, Cloud ERP as a Service, Cloud CRM as a Service. The division recorded early successes with bagging orders in industry verticals like Healthcare, Manufacturing, BFSI, IT/ITES
  • The company also introduced its range of and became the first to introduce computing products with Bureau of Energy Efficiency (BEE) star compliance with the introduction of HCL ME Laptop M54
  • The employee strength has increased from 6731 in 2010 to 7231 in 2011
  • The year that went by witnessed numerous recognitions for your Company as we bagged several awards and accolades as under:
  • The company signed the CII Code of Conduct for Affirmative Action, for detailshttp://www.hclinfosystems.in/Affirmative_Action_HCL.htm
  • The company was ranked Top 2 in the Best Employer Survey conducted by IDC-Dataquest
  • Top five in IT Industry, in the Best Companies to Work For 2011 conducted by Economic Times and Great Place to Work Institute.
  • Introduced a new three-step Performance Management System to enhance Performance Management System and a culture of individual accountability
  • Mr. Ajai Chowdhry conferred Padma Bhushan by the President of India for his outstanding contribution to the industry  and also felicitated with ‘Honoris Causa Doctorate’ of Science for his contribution to the Indian IT Industry by IIT Roorkee
  • HCL Learning wins BEST PUBLIC CHOICE AWARD – TOOL FOR INNOVATIVE TEACHING AND LEARNING FOR  Digischool by World Education Summit 2011
  • Ranked #1 in IDC-Dataquest Customer Satisfaction Survey 2011; Third year in a row
  • HCL Infosystems awarded ‘Most Promising New Technology for Urban Applications’ at the Municipalika 2011
  • Ranked 2nd in the latest Greenpeace Green Electronics Ranking
  • HCL Green Data Center was  awarded 1st Ever LEED Platinum Certification in India by US Green Building Council
  • DQ – IDC ranks your comapny #2 Domestic ICT Company. The Company was also rated among Top 10 ICT Companies in India
  • Awarded Dun & Bradstreet Rolta Corporate Award under Computer Hardware and Peripherals Category
  • Selected Business Superbrands of India by the Superbrands Council


About HCL Infosystems

HCL Infosystems Ltd, with revenue (LTM) of US$ 2.6 billion (Rs.11,542 crores) is India’s premier hardware, services and ICT systems integration company offering a wide spectrum of ICT products that includes Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a one-stop-shop for all the ICT requirements of an organisation. India’s leading System Integration and Infrastructure Management Services Organisation, HCL has specialised expertise across verticals including Telecom, BFSI, eGovernance & Power. HCL has India’s largest distribution and retail network, taking to market a range of Digital Lifestyle products in partnership with leading global ICT brands, including Apple, Cisco, Ericsson, Kingston, Kodak, Konica Minolta, Microsoft, Nokia, Toshiba, and many more. HCL today has India’s largest vertically integrated computer manufacturing facility with over three decades of electronic manufacturing experience & HCL desktops is the largest selling brand into the enterprise space. With India’s largest ICT services network that reaches to every corner of India, HCL’s award winning Support Services makes it the preferred choice of enterprise and consumers, alike. For more information please visit us at www.hclinfosystems.in 


About HCL

HCL is a $5.9 billion leading global technology and IT enterprise comprising two companies listed in India – HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 80,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HCL has partnerships with several leading global 1000 firms, including leading IT and technology firms. For more information, please visit www.hcl.com

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