During the Financial Year 2016-17 the growing momentum of the Enterprise Businessfocus combined with improved operational effeciency enhanced productivity and thrust ondigital technologies has energized our performance in the Enterprise space. Let medescribe how your company performed during FY17.
Your company posted revenue of Rs. 3738 Crore in FY17. The Enterprise Business asa whole grew marginally during the year. However this should be seen in the context ofthe fact that during the year we proactively exited unprofitable engagements andvariableized our low margin services through our ASP ecosystem. Importantly our breadthof products strong reseller partnerships OEM partnerships and customer value alignmenthas created a unique proposition forourcustomers.
The Enterprise Distribution turned in a commendable performance with aconsistent growth driven by traction with key Enterprise OEMs along with strongperformance across Enterprise and Channel. We have significantly enhanced our focus onCloud through internal investments and strong collaboration with Microsoft.
The Enterprise Services business clocked revenue of Rs. 949 crore in FY17. Therewas a decline in revenue due to ongoing contract rationalization in the domestic servicesbusiness. It is worth noting that the losses of the overall Services business havedeclined consistently Q-o-Q during the financial year. The foundation for expansion intohigher margin service contracts has been built through capability augmentation to enableus to take advantage of key market trends in the emerging technology services.
In the Consumer Distribution business there was a considerable decline inrevenue during FY17 due to transition in the business model and a challenging businessenvironment.
I am happy to let you know that the Consumer Distribution business during the financialyear has transitioned to a multi-brand multi-channel business model since January 2017 toexpand in the high- potential segments of mobile products. And the business has alreadyachieved an early breakthrough by acquiring the General Trade distributorship in threestates for a leading global brand mobility smartphone product suite. This business is setto scale with further tie ups and launches in this financial year.
The total revenue from the System Integration & Solutions businesses for theFY stood at Rs. 355 crore. The bright spot in this business is that due to focus ontimely completion of existing projects there was higher revenue collection and reducedbills receivables. For example there was an inflow of Rs. 200 Crore from a major DefenceProject during this financial year. The risks associated with projects has been mitigatedalmost entirely with most of the projects achieving commercial closure or nearingcompletion. In our flagship UIDAI project we crossed another milestone of more than 113crore Aadhaarcard enrollments.
Disciplined working capital management enabled us to see through the financial yearwithout any significant incremental net debt whilst managing the funding of the cashlosses entirely through these initiatives.
In October 2015 the company had rolled out PULSE (Personalised Unit Level SelfEvaluation) a weekly self-evaluation system for employees to identify gaps andimprovement opportunities at an organizational level. Consequently many processes withinfunctional teams were identified for overhauling and accordingly taken up for action.During the last financial year we introduced Gold Standards. Demand Desk an OnlineTicketing System that empowers employees to demand action from their colleagues to ensurevalue creation. It also led to mapping role clusters which helped define full potentialfor all critical roles.
The transformation journey has enabled us to build a strong distribution and servicesbusiness together with institutionalization of corporate governance processes andcapability building initiatives.
With the concurrent advent of multiple disruptive digital technologies and rapidlychanging business dynamics we stand at an inflection point in the Industry. We are wellpositioned to take these challenges in our stride and gainfully address the emergingopportunities. I am confident that our continued focus on the Enterprise Business alongwith multiple internal and market related initiatives will help us lead HCL Infosystemstowards sustained growth and profitability.
With Warm Regards