HCL Infosystems Q2 loss widens to Rs 454 crore

IT firm HCL Infosystems today said its consolidated loss widened to Rs 454.42 crore in the second quarter ended September 30, on account of impairment of goodwill for its services business.
The company had posted loss of Rs 38.97 crore in the same period a year ago.
"The consolidation and optimisation in our enterprise business continues on its planned path. Due to right sizing of our portfolio in Enterprise Services, an impairment charge for goodwill of Rs 390 crore was taken in the books," HCL Infosystems, Executive Vice-Chairman and MD, Premkumar said in a statement.
A note in the result report of the company said as part of its strategy, the company continues to review and streamline, including right size, disengage or wind down of components of its services offerings, segments and geographies which has led to an impairment of goodwill in current quarter for the services business.

The total income of HCL Infosystems declined by 12.17 per cent during the reported quarter to Rs 910.8 crore from Rs 1,037.03 crore in corresponding quarter of previous fiscal.
HCL Infosystems said that the consumer distribution business has achieved traction in the quarter with revenue of Rs 299 crore, up from Rs 69 crore in the previous quarter.

"Tie-ups with leading telecom OEMs (original equipment makers) like HMD Global and release of new Nokia models enabled the business to report a robust growth. The business also witnessed increased traction in strategic channels like ecommerce," the statement said.
The company also signed a distributor agreement for distribution of iPhone and other Apple products with Apple India in the quarter, it added.

The enterprise products distribution business posted revenue of Rs 316 crore and the enterprise services business had revenue of Rs 235 crore in the reported quarter, the company said.
HCL Infosystems has total order book of Rs 816 crore as on September 30, 2017, as per the statement.
Shares of the company closed up 0.73 per cent at Rs 48.6 per unit on BSE today.