New Delhi, Delhi, India-
- Consumer Business readies for Multi-Brand Telecom Distribution
- Enterprise focus continues for growth and profitability with Services geared for robust traction
- Overall Revenue of Rs. 765 Crore in Q3
- Enterprise Business continues to grow with revenue of Rs. 490 Crore in Q3 (+5% YoY) on the back of strong order book growth
- Progress made towards project completion and receivables in the System Integration (SI) business with a collection of Rs. 200 Crore from a major Defence Project
- Consolidated Profit / (Loss) before Tax at Rs. (65.8) Cr in Q3
HCL Infosystems, one of India’s premier IT Services, Distribution and Digital Solutions Company, today announced its financial results for the third quarter ended December 31, 2016.
Mr. Premkumar Seshadri, Executive Vice-Chairman and Managing Director, HCL Infosystems Ltd., commenting on the results said, “The restrained market environment in the consumer business coupled with Partner transition impacted overall revenue & profitability. Our investments in the Enterprise Business have helped make this business a significant part of company revenues. Enterprise Services won over Rs. 100 Cr of TCV in the quarter. The SI focus on execution is sustained as more projects come to end of build phase.”
The Enterprise focused GTM witnessed positive traction and resulted in new wins, especially in the BFSI sector. The business continues to invest and build competencies including in emerging technologies to leverage for growth in a challenging market environment.
Also the Enterprise Services business is poised for growth on account of a few positive developments. Ongoing Contract rationalization and productivity improvement initiatives in the business has been undertaken to enhance profitability. Again certain key wins in the quarter has combined into a total contract value which should contribute to revenue momentum in the business.
The Global Business continued its growth in Q3, in terms of both revenue and profitability. The company expanded its global footprints during the quarter, venturing into Oman to deliver IoT and M2M services besides innovative digital offerings and e-Government solutions.
Market environment and transition by the Principal impacted the revenue of the Consumer Distribution Business. The business recorded revenue of Rs. 221 crore, a drop of 50% Q-o-Q in revenues.
System Integration (SI) & Solutions
The SI & Solutions business, in its final phase of build in most projects stays focused on execution and collections. The business registered revenue of Rs. 59 Crore in Q3 FY2017 with orders worth Rs. 75 Crore executed during the quarter. The business collected Rs. 200 Crore in this quarter from one of its projects.