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HCL Infosystems Ltd.

BSE: 500179 Sector: Consumer
NSE: HCL-INSYS ISIN Code: INE236A01020
BSE LIVE 15:59 | 18 Aug 43.70 -1.20
(-2.67%)
OPEN

44.95

HIGH

45.00

LOW

43.10

NSE 15:59 | 18 Aug 43.70 -1.30
(-2.89%)
OPEN

44.50

HIGH

44.65

LOW

43.05

OPEN 44.95
PREVIOUS CLOSE 44.90
VOLUME 158602
52-Week high 64.85
52-Week low 39.20
P/E
Mkt Cap.(Rs cr) 975
Buy Price 43.70
Buy Qty 1696.00
Sell Price 0.00
Sell Qty 0.00
OPEN 44.95
CLOSE 44.90
VOLUME 158602
52-Week high 64.85
52-Week low 39.20
P/E
Mkt Cap.(Rs cr) 975
Buy Price 43.70
Buy Qty 1696.00
Sell Price 0.00
Sell Qty 0.00

HCL Infosystems Ltd. (HCL-INSYS) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me immense pleasure to congratulate all of you as we embark on the 40thyear of our journey of pioneering innovations in technology. HCL's successful longevity inthe market can be solely attributed to its ability to adapt and grow.

In fiscal 2016 we have accelerated the pace of our trajectory to build a customercentric business. Today your company is configured into four market-driven Business Unitshousing nine core lines of business (LOBs). This reconfiguration of business units enablesus to achieve profitable revenue growth as well as bolster the sustainable order book inemerging market growth segments. The inherent synergies in our focus businesses willsignificantly enhance the growth potential.

Your company posted revenue of Rs. 3718 Crores in FY16 a decline of 18% over thecorresponding nine months period. This was mainly due to the weak demand environment andrationalization of product portfolio by the Principal in the Consumer Distributionbusiness. However the consistent focus and investments in our Enterprise Distributionbusiness resulted in a robust growth in this segment over the last year with 72% Y-o-Yincrease in revenues. The overall Services business was on a positive growth track.

During the year an integrated Go To Market (GTM) organization called 'Enterprise 360'a market facing organization was conceptualized and implemented to sell our ProductsServices and Solutions across the Enterprise Segment to be the preferred TechnologyLifecycle Partner for our customers.

The core Enterprise Business consisting of Enterprise Product Distribution DomesticEnterprise Services Global Enterprise Services and Care Services will be the engine forthe Company's next level of growth. The Enterprise Products Distribution portfolio wasfurther strengthened with addition of leading international technology brands during thelast three quarters. With a differentiated value added distribution proposition coupledwith an augmented solution-cum- service offerings strategic partner alliances and channelnetwork the business is set on a sustainable growth trajectory.

The Domestic Enterprise Services business won multiple prestigious client engagementsagainst strong competition. Infrastructure Managed Services (IMS) achieved over 80% clientrenewal and the Multi-Vendor Technology Services (MVTS) business focused on profitabilityefficiency and contract rationalization. We continue to invest in capability and toolshere and would continue to do so in the coming years as we push for market leadership inkey emerging areas of Infrastructure Management. The Global Services business continued toregister growth in revenue and profitability. I am glad to inform that our Care businesshas registered a revenue growth of 11% Y-o-Y.

During FY16 the System Integration (SI) business continued to focus on efficientexecution of current order book and moved some of its key defence projects towardscommercial closure. The UIDAI project crossed the milestone of enrolment of more than 100crore Aadhaars.

The Financial Inclusion (FI) business of the company has been in sync with theGovernment's focus on reaching out to the vast un-banked and under-banked population. Weare proud to be part of this nation building mission. During the year the FI businessregistered 29% growth in Y-o-Y revenue and 59% Y-o-Y growth in banking transactions.

Your company also focused on driving cost optimization and contract rationalization toimprove profitability operational excellence and quality initiatives to build asustainable business model.

During the year we have further augmented the leadership strength of the company byinducting highly experienced executives in strategic roles across the organization.

We have introduced PULSE (Personalized Unit Level Self Evaluation) a weeklyself-evaluation system for employees. PULSE is the first such weekly evaluation concept tobe introduced on such a scale. Under the 52 week metrics system each employee is requiredto self-assess his performance along pre-defined metrics which will allow to reviewperformance with the reporting manager and course correct on a weekly basis. Ultimatelythis will ensure better alignment of individual actions with larger organizational goals.It is becoming a part of our daily working life and driving us to perform at fullpotential achieve excellence and thus fast forward our transformation growth journey.

During the year under review your Company was recognized on multiple occasions forbusiness and technology excellence. HCL Infosystems won the "Operational ExcellenceAward" for Order Management Process at the National Quality Excellence Awards. HCLInfotech was felicitated at the 11th Elets Annual eINDIA Summit 2015 for creating WorldClass IT infrastructure to transform e-Governance in Madhya Pradesh. The Care business wonmultiple awards - ‘Retailer of the Year’ award at the Asia Africa GCC RetailExcellence Awards; ‘CMO Asia Marketing Excellence Award’ in Retail and TelecomServices Sector; ‘Retailer of the Year’ award for Market Leadership andInnovation at Asia Retail Congress and ‘Retailer of the Year’ award at CMORetail Excellence Award Singapore.

As we move forward into FY17 we are well positioned and geared up to achievesustainable and profitable growth. We also realize that these are the initial milestonesof a long and challenging journey. However the growth indicators are both positive andpromising for all our focus businesses. The impetus from the Government of India onDigital India Smart Cities Make in India Internal Security positions us in astrategically advantageous territory and enables us to address these markets &industry-driven opportunities efficiently and profitably.

Our aim is to be a preferred Technology Lifecycle Partner for our clients and a greatplace to work for our employees. With a new and talented leadership team market alignedbusinesses aggressive go-to- market strategies and rigour in driving operationalefficiencies - we are confident that we will create better value for our customerspartners and shareholders and ensure that HCL Infosystems gains its rightful place in theindustry.

Further I would like to thank shareholders for the support and faith that you havereposed in the Company.

With Warm Regards

Premkumar Seshadri