Mr. Ajai Chowdhry, Chairman, HCL Infosystems Limited, commenting on the results said – “We are clearly investing in the future and as we do so a new face of HCL Infosystems is unraveling with each day. This steady transformation has led the company reinvent itself, consistently winning various prestigious projects that are going to play an integral role in fueling our country’s growth engine. Where we continue to focus and carry the baton of the need of Made in India, Made For India Product Engineering, R&D and manufacturing with creating IPs, today the company has emerged as a leading System Integrator with a host of solutions catering to areas like eGovernance, power, telecom, education & learning and security etc. As we’re growing business, there are investments being made for capacity building along with seeking opportunities to both grow organically and inorganically. We recently did another strategic acquisition in Middle East and are actively looking at inorganic growth with a focus to expand both the geographical presence and further enhance our IT services capability”
“With sustainability an important pillar of our growth we have been very particular about the way we do business. HCL Infosystems was recently conferred one of the top Green Companies globally by Greenpeace and I am proud to say that this quarter HCL Infosystems achieved India’s First LEED IC Platinum certification for HCL Green Data Center”
Mr. Harsh Chitale, Chief Executive Officer, HCL Infosystems Limited, commenting on the results said – “This quarter has witnessed our growth programs kicking in with us ending it with an all time high order book. There have been some key wins in the System Integration space across sectors further strengthening our order pipeline and on the other hand our computer hardware business has also recorded good growth. We have also taken some portfolio decisions like disinvestment in HCL Infinet which are intended to not only further consolidate our offerings but to also increase focus on the indentified strategic growth areas.”
“Talking about our education business, HCL Learning has opened a big market for us, responding well with recording good growth during the quarter and also showing healthy signs with rapid order bookings. I am confident with renewed focus and consistent investment in these growth areas the organisation will soon be on the growth trajectory it has set for itself”
The company’s charter of expansion led by transformation in the Services and System Integration business has resulted in the introduction of new practices, new products through IP creation for diverse System Integration solutions. The expansion strategy also involves tapping emerging sectors and aggressively augments services, exports and inorganic growth through possible mergers and acquisition.
Investing in the future
- Employee strength grew to 7260 professionals as on December 31, 2010
- Overseas expansion through inorganic growth in high potential emerging markets
- Acquired 20% equity stake in a Dubai-based Telecom company for distribution of Nokia smartphones in Middle East and Africa
- Consolidated service offerings, SPA signed for subsidiary Infinet with an increased focus on strengthening its core business areas and expand into identified growth areas
- Expansion of existing Software Development Centre at Jaipur
- Forayed in the kids entertainment market with ME gaming consoles and ME Kids Educational Computers
- Achieved India’s First LEED IC Platinum certification for HCL Green Data Center
- Committed to sustainability, further invested in the development of green products
Key developments and growth programs
System Integration
- Bagged an order from a leading telecom company for consolidating bill delivery mechanism in North & West zone
- Bagged an order for design, installation and maintenance of border check post and central control room infrastructure for a state government
- Other orders included ERP order from a state government under Directorate of Technical Education for the implementation of MIS in 100 colleges, an order from Indian Railways for providing Converged Solutions, order to implement an emergency response system for a state police etc.
HCL Learning (Education & Learning division of HCL Infosystems)
- HCL Learning further strengthened and recorded good growth
- Bagged HP Sarva Sikhsha Aviyaan project worth Rs. 40 Cr approximately
- Signed over 100 schools and 1000 classrooms under its HCL Learning Digischool program
- Various programs were launched like ‘ Xcelerate’, to provide Live Video Learning for various competitive examinations, Project Kaushal to provide vocational IT training for Indian Army, an order from a State Electronics Corporation for setting up 788 Language Lab and licenses for language labs to conduct the courses in Govt. Schools etc.
Enhancing PC adoption
- Bagged an order from
- Kerala State Electronics Development Corporation Ltd. for IT@School Project by the Government of Kerala to provide over 6500 laptops and netbooks
- Assam Electronics Development Corporation Ltd by the Government of Assam to provide over 7000 laptops and netbooks.
- Alliance with Ernakulam District Co-operative Bank to provide interest free Computer Loans
- New desktop based on Intel H55 and Intel Q57 chipsets were rolled out
- Launched HCL ME Laptop 75 and HCL ME Series 08, 3G capable netbook
Expansion of Overseas Business with HCL Infosystems MEA
- HCL Infosystems MEA signed a multi-million dollar agreement with Mercator, to manage IT infrastructure for flydubai
Digital lifestyle – New products added to the portfolio
- Digital Lifestyle business added new products to its portfolio of consumer electronics and mobile accessories – Signed distribution agreement with HP PSG India for the HP DreamScreen400
- Launch of Nokia C7 and much awaited Nokia N8 was well received
Awards and Accolades
- Mr. Ajai Chowdhry conferred Padma Bhushan by the President of India for his outstanding contribution to the industry
- Mr. Ajai Chowdhry awarded with ‘CNBC Asia Business Leader Viewer’s Choice Award 2010’
- Mr. Ajai Chowdhry honoured with ‘India Innovator of the Year Award’ at the 6th edition of the CNBC TV 18 India Business Leader Awards 2010
- Mr. Ajai Chowdhry, Chairman, conferred with Honoris Causa Doctorate of Science (D. Sc.) by IIT Roorkee
- HCL Infosystems achieved India’s First LEED IC Platinum certification for HCL Green Data Center
- Received ELCINA-EFY Award 2009-10 for Environmental Management
- Hcl Infosystems awarded CXO Award 2010 – The IT Chapter in the category of Indian Hardware Brand of the Year 2010
- Gained world-wide 2nd rank in the latest Green Peace rankings with a rating of 7.1
Results Highlights
| Rs. Crores | Unaudited | Unaudited | |||||
| Q2 FY10 | Q2 FY11 | Y-o-Y % | H1 FY10 | H1 FY11 | Y-o-Y % | ||
| Consolidated Revenue | 3,054 | 3,154 | 3% | 6,082 | 6,144 | 1% | |
| Consolidated PBT | 78 | 80 | 3% | 161 | 154 | -4% | |
| Consolidated PAT | 56 | 56 | 0% | 115 | 103 | -10% | |
| Consolidated Services | 179 | 227 | 27% | 324 | 409 | 27% | |
| Segment Information | |||||||
| Computer Systems & Other Related Products and Services | |||||||
| Rs. Crores | Unaudited | Unaudited | |||||
| Revenue | Q2 FY10 | Q2 FY11 | Y-o-Y % | H1 FY10 | H1 FY11 | Y-o-Y % | |
| Systems Integration | 107 | 222 | 107% | 247 | 415 | 68% | |
| Learning | 6 | 24 | 323% | 14 | 35 | 152% | |
| Overseas Operations | 0 | 95 | 0 | 182 | |||
| Computing Business | 619 | 705 | 14% | 1,287 | 1,330 | 3% | |
| Intersegment / Adjustments | -10 | -6 | -9 | -23 | |||
| Computer Systems & Other Related Products and Services | 722 | 1,040 | 44% | 1,539 | 1,939 | 26% | |
| PBIT | Q2 FY10 | Q2 FY11 | Y-o-Y % | H1 FY10 | H1 FY11 | Y-o-Y % | |
| Computer Systems & Other Related Products and Services | 28 | 45 | 60% | 76 | 81 | 6% | |
| Telecommunication & Office Automation | |||||||
| Rs. Crores | Unaudited | Unaudited | |||||
| Revenue | Q2 FY10 | Q2 FY11 | Y-o-Y % | H1 FY10 | H1 FY11 | Y-o-Y % | |
| Telecom Distribution | 2,012 | 1,726 | -14% | 3,960 | 3,476 | -12% | |
| Digital Entertainment | 187 | 202 | 8% | 343 | 354 | 3% | |
| Office Automation | 116 | 174 | 50% | 231 | 331 | 43% | |
| HCL Security | 8 | 8 | 4% | 13 | 20 | 52% | |
| Intersegment / Adjustments | 6 | -7 | 3 | 0 | |||
| Telecommunication & Office Automation (Net) | 2,329 | 2,104 | -10% | 4,550 | 4,181 | -8% | |
| PBIT | Q2 FY10 | Q2 FY11 | Y-o-Y % | H1 FY10 | H1 FY11 | Y-o-Y % | |
| Telecommunication & Office Automation | 57 | 57 | 0% | 113 | 111 | -2% | |
The Board of Directors has declared 100% quarterly Interim dividend. This is the 30th continuous quarter for dividends. (100% on an equity share of par value of Rs. 2/- each)