HCL Infosystems FY17 revenue pegged at Rs 3,738 crore

HCL Infosystems, one of India's premier IT Services, Distribution and Digital Solutions Company, today announced its financial results for the financial year ended March 31, 2017.

Mr. Premkumar Seshadri, Executive Vice-Chairman and Managing Director, HCL Infosystems Ltd., commenting on the results said, "Our sustained augmented focus and investments in the Enterprise space has been clearly working well as seen from the continued growth and profitability, thereby reducing impact due to planned transition of the consumer business model."

Enterprise Business:

The core Enterprise Business consisting of Enterprise Products Distribution, Domestic Enterprise Services, Global Enterprise Services and Care Services continued on its positive growth track, with 16 percent Q-o-Q increase in revenue. The business is building capabilities in Cloud, Internet of Things and other emerging technologies to leverage the significant opportunities in the digital enterprise technologies space.

The Enterprise Products Distribution business gained business traction with leading global OEM partners. The business improved operational efficiency and enhanced productivity during Q4 FY17.

The Enterprise Services business (comprising Domestic Services, Global Services and Consumer Services) clocked revenue of Rs. 949 Cr in FY17. Contract rationalization and productivity improvement initiatives in the business have resulted in lowering of loss before interest and taxes to Rs. (5.6) Cr in Q4 FY17 (JFM 17) from Rs. (19.6) Cr in Q3FY16 (JFM 16).

The Global Services business continued to register growth in revenue and profitability. The Singapore business was awarded a prestigious project to provide IT Managed Services to the Government of Singapore over an eight-year period. Process and productivity improvements resulted in increased customer satisfaction scores and improved margins.

Consumer Business:

The Consumer Distribution business forayed into a Multi-Brand Telecom Distribution model, winning a distributorship deal from a leading mobility company.

Revenue declined from Rs. 221 Cr in Q3 to Rs. 163 Cr in Q4 FY17. Gradual transition from the single brand distribution model and a highly competitive landscape impacted revenues.

System Integration (SI) & Solutions:

The SI and Solutions business registered revenue of Rs. 355 Cr during the year with orders worth Rs. 60 Cr signed off in Q4 2017. The total order book size stood at Rs. 880 Cr as on 31st March 2017. The focus remained on completion of major projects and collection of receivables. The UIDAI project crossed the milestone of enrollment of more than 113 crore Aadhaar cards.

HCL Learning

HCL Learning entered into a strategic arrangement with Everest Edusys and Solutions Pvt Ltd through a business transfer agreement for the slump sale of its Digischool business. Subsequent to the closure of the said acquisition, M/s Everest Edusys and Solutions Pvt Ltd would become an associate company of HCL Learning Ltd.

Other Highlights (JFM Q4 FY2017)

HCL Infosystems and it's subsidiaries - HCL Services Ltd. And HCL Insys Pte Ltd. - achieved the Oracle Platinum Partner status in Oracle PartnerNetwork in March 2017 for in-depth expertise in selling and implementing Oracle solutions for clients.