HCL Infosystems Q1 loss narrows to Rs 35.7 cr

Information Technology firm HCL Infosystems on Saturday reported a consolidated loss of Rs 35.7 crore for the April-June quarter.

The company had posted a net loss of Rs 154.6 crore in the previous January-March quarter, HCL Infosystems said in a BSE filing.

The company's net sales were at Rs 1,148.2 crore in April-June against Rs 1,069.1 crore in January-March.

As required under Section 2 (41) of the Companies Act 2013, during the previous period, the company and its subsidiaries have changed its accounting period from July-June to April-March and therefore, the previous accounting period comprised of results for nine months period ended March 31, 2016, it said.

 

"Accordingly, in accordance with Sebi circular, results of quarter ended June 30, 2015 are not included," it added.

HCL Infosystems said the exceptional item for the quarter and nine months period ending March 2016 included an impairment charge of Rs 70 crore with respect to the learning business.

This was on account of write down of part of the goodwill, which was recognised in the prior years during the process of restructuring of the company, it added.

HCL Infosystems' enterprise business revenues grew to Rs 573 crore, accounting for 50 per cent of the revenues. The consumer business revenue was at Rs 472 crore.

"Our continued thrust and investments in the enterprise business has resulted in robust growth for the fourth quarter in succession," HCL Infosystems Executive Vice-Chairman and Managing Director Premkumar Seshadri said.

The mobility business also showed a positive trajectory in this quarter, enabling improved profitability, he added.

The SI and solutions business registered revenue of Rs 122 crore in the reported period with orders worth Rs 80 crore executed during the quarter.

The total order book size stood at Rs 1,100 crore as on June 30, 2016, largely comprising annual maintenance and managed services contracts.