Hcl Sets Sights On High-Value Services

The company was able to rake in profits in the last fiscal due to its value-added technology mix. Its internet and e-commerce revenues rose 93 per cent to reach Rs 381 million, contributing 41 per cent to revenues compared with 27 per cent in the last year. Offshore-centric revenue increased 65 per cent to cross Rs 581.8 crore, accounting for 63 per cent of total revenues against 49 per cent in the previous year.

The company's technology development service revenue grew 188 per cent to Rs 316.2 crore, while its networking services rose 81 per cent to cross Rs 144.6 crore in 1999-00.

Commenting on the company's future outlook, the chairman and chief executive officer Shiv Nadar said, "HCL Technologies' core competency is technology and this has enabled us to deliver some truly path-breaking solutions. Our focus in the emerging technologies arena has enabled us to become a significant part of our customers' IT strategy."

HCL Technologies has sought to maintain a balance of revenue mix in 1999-2000 in order to strengthen its position. One of HCL Technologies's business strategies has been to focus on its annuity business. The company's repeat business from existing clients grew to 72 per cent in 1999-2000 against 64 per cent in the previous year. Overall, it client base got upgraded by an addition of 76 new customers.

Revenues derived from the US were 71 per cent in 1999-2000 compared with 69 per cent in the last year. The company's client concentration remained remained well-balanced with the top 5, top 10 and top 20 customers contributions at 19 per cent, 29 per cent and 43 per cent of revenues respectively.

Additionally, HCL Technologies has been actively evaluating merger and acquisition opportunities in US and Europe. It has constitutes a six member team to scout for companies with strong credentials in technology. The company has spent Rs 7.6 crore since January 2000 on its M&A activities.