HCL Infosystems posts revenue of INR 765 Crore in Q3 FY 2017

- Consumer Business readies for Multi-Brand Telecom Distribution

- Enterprise focus continues for growth and profitability with Services geared for robust traction Quarter Highlights

  • Overall Revenue of Rs. 765 Crore in Q3

  • Enterprise Business continues to grow with revenue of Rs. 490 Crore in Q3 (+5% YoY) on the back of strong order book growth.

  • Progress made towards project completion and receivables in the System Integration (SI) business with a collection of Rs. 200 Crore from a major Defence Project

  • Consolidated Profit / (Loss) before Tax at Rs. (65.8) Cr in Q3

New Delhi, January 31, 2017: HCL Infosystems, one of India's premier IT Services, Distribution and Digital Solutions Company, today announced its financial results for the third quarter ended December 31, 2016.

Mr. Premkumar Seshadri, Executive Vice-Chairman and Managing Director, HCL Infosystems Ltd., commenting on the results said, "The restrained market environment in the consumer business coupled with Partner transition impacted overall revenue & profitability. Our investments in the Enterprise Business have helped make this business a significant part of company revenues. Enterprise Services won over Rs. 100 Cr of TCV in the quarter. The SI focus on execution is sustained as more projects come to end of build phase."

Enterprise Business: Domestic Business

The Enterprise focused GTM witnessed positive traction and resulted in new wins, especially in the BFSI sector. The business continues to invest and build competencies including in emerging technologies to leverage for growth in a challenging market environment.

Also the Enterprise Services business is poised for growth on account of a few positive developments. Ongoing Contract rationalization and productivity improvement initiatives in the business has been undertaken to enhance profitability. Again certain key wins in the quarter has combined into a total contract value which should contribute to revenue momentum in the business.

Global Business

The Global Business continued its growth in Q3, in terms of both revenue and profitability. The company expanded its global footprints during the quarter, venturing into Oman to deliver IoT and M2M services besides innovative digital offerings and e-Government solutions.

Consumer Business:

Market environment and transition by the Principal impacted the revenue of the Consumer Distribution Business. The business recorded revenue of Rs. 221 crore, a drop of 50% Q-o-Q in revenues.

System Integration (SI) & Solutions:

The SI & Solutions business, in its final phase of build in most projects stays focused on execution and collections. The business registered revenue of Rs. 59 Crore in Q3 FY2017 with orders worth Rs. 75 Crore executed during the quarter. The business collected Rs. 200 Crore in this quarter from one of its projects.

Earnings Conference Call

We will hold an earnings conference call on 2ndFebruary at 4 p.m. Indian Standard Time to discuss the performance for the quarter. A transcript of the management discussions and the question and answer session will be available online and will be accessible in the Investor Relations section of our website at www.hclinfosystems.in.

For more information, please visit www.hclinfosystems.in

Contact for Investor Relations Contact for Media & Press

Sumeet Ahluwalia Tanay J. Gogoi

Phone: +91-120 2522879 Phone: +91-120 2545606

sumeet.ahluwalia@hcl.comtanay.gogoi@hcl.com

About HCL Infosystems

HCL Infosystems is one of India's premier IT Services, Distribution and Digital Solutions Company, enabling organizations attain and sustain competitive advantage by leveraging Information and Communication Technologies. It offers a comprehensive portfolio of capabilities spanning IT & System Integration services, digitally-enabled learning to value-added distribution of technology, mobility and consumer products. For more information, please visit us at www.hclinfosystems.in; follow HCL Infosystems on Twitter at @HCLScribes

About HCL

Founded in 1976 as one of India's original IT garage start-ups, HCL is a pioneer of modern computing with many firsts to its credit, including the introduction of the 8-bit microprocessor-based computer in 1978 well before its global peers. Today, the HCL enterprise has its presence across varied sectors that include technology, healthcare and talent management solutions. The organization, as a whole, comprises of four companies - HCL Infosystems, HCL Technologies, HCL Healthcare and HCL TalentCare. The enterprise generates annual revenue of over US$ 7 billion with more than 110,000 employees from 100 nationalities operating across 31 countries, including over 500 points of presence in India. For further information, visit www.hcl.com

(Tables to follow)

CONSOLIDATED RESULTS Rscrores

31.12.2016

30.09.2016

31.12.2015

Nine Months Ended 31.12.2016

Six Months Ended 31.12.2015

Nine Months period Ended 31.03.2016

Income from operations

(a) Net sales/Income from operations

764.6

1,001.6

1,117.9

2,914.5

2,587.1

3,656.2

(b) Other operating income

- - - 0.0

- 9.9

Total Incom e from operations

764.6 1,001.6 1,117.9 2,914.5

2,587.1 3,666.1

Expenses

Cost of materials consumed

0.1

0.2

-

0.6

-

0.1

Purchases of Stock-in-trade

505.0

665.6

810.6

1,974.4

1,870.2

2,606.4

Changes in Inventories of f inished goods, w ork-in-

1.8

40.2

7.4

50.4

14.8

41.1

progress and stock-in-trade

Employee benefits expense

128.6

141.3

161.4

419.1

312.2

458.3

Depreciation and amortisation expense

11.9

9.4

11.2

30.3

22.1

32.0

Other Expenses

168.8

183.2

196.5

567.0

457.2

684.8

Total Expenses

816.1

1,039.9

1,187.0

3,041.7

2,676.4

3,822.6

Profit / (Loss) from Operations before Other Income,

f inance costs and exceptional items

(51.5)

(38.2)

(69.2)

(127.3)

(89.3)

(156.5)

Other Income

34.9

36.9

42.4

107.9

87.7

130.3

Profit / (Loss) from ordinary activities before finance costs and exceptional items

(16.6)

(1.3)

(26.8)

(19.3)

(1.6)

(26.2)

Finance costs

49.2

47.9

41.9

141.4

79.0

125.7

Profit / (Loss) before exceptional items

(65.8)

(49.2)

(68.8)

(160.7)

(80.7)

(151.9)

Exceptional Items loss/ (Gain)

-

-

-

-

(3.9)

67.2

Profit / (Loss) before tax

(65.8)

(49.2)

(68.8)

(160.7)

(76.8)

(219.1)

Tax Expense/ (Credit) (15.1)

(12.0)

(11.9)

(37.2)

(17.1)

(4.8)

Net Profit / (Loss) from ordinary activities after Tax

(50.7)

(37.1)

(56.8)

(123.6)

(59.7)

(214.3)

Extraordinary items (net of tax expense)

-

-

-

-

-

-

Net Profit / (Loss) for the period before share of (50.7)

(37.1)

(56.8)

(123.6)

(59.7)

(214.3)

profit / (loss) of associates and joint ventures

Unaudited Three Months ended

Unaudited Year to Date

Audited

Share of Profit / (loss) of associates and joint ventures - - - - --

Net Profit / ( Loss) after taxes, and share of Profit / (Loss) of associates

Other Comprehensive income, net of income tax

  1. Items that w ill not be reclassified to profit or loss

  2. Items that w ill be reclassified to profit or loss

Total other comprehensive income, net of income tax

Total com prehensive incom e for the period Basic EPS (Not annualised) Rs/share

0.0

0.0

0.0

0.0

0.1

0.1

(3.5)

(1.9)

0.8

(5.4)

3.8

4.9

(3.5)

(1.8)

0.8

(5.3)

3.9

5.0

(54.2)

(39.0)

(56.0)

(128.9)

(55.8)

(209.3)

(2.3)

(1.7)

(2.5)

(5.5)

(2.7)

(9.6)

(50.7) (37.1) (56.8) (123.6) (59.7) (214.3)

Unallocated

-Others unallocated 1,601.1 1,460.6 1,372.2 1,601.1 1,372.2 1,346.3

Total Segm ent Liabilities 2,768.9 2,745.2 2,909.5 2,768.9 2,909.5 2,772.5

- Learning

Unallocated

-Liquid Assets 120.8 116.0 162.1 120.8 162.1 51.1

-Others unallocated 645.4 478.1 358.8 645.4 358.8 385.5

Total Assets 3,443.9 3,474.5 3,866.9 3,443.9 3,866.9 3,576.5

Segment Liabilities

-Hardw are Products and Solutions 571.8 590.5 849.9 571.8 849.9 718.6

-Services 230.3 241.4 227.3 230.3 227.3 215.5

-Distribution 347.8 433.1 437.3 347.8 437.3 470.8

-Learning 17.9 19.6 22.7 17.9 22.7 21.4

Total (21.3) (4.1) (29.8) (27.8) (10.4) (109.8)

Less :

i) Interest Expense 49.2 47.9 41.9 141.4 79.0 125.7

ii) Other un-allocable expenditure net off un- (4.7) (2.8) (3.0) (8.5) (12.7) (16.5) allocable (income)

Total Profit / (Loss) before Tax (65.8) (49.2) (68.8) (160.7) (76.8) (219.1)

Segm ent Assets

-Hardw are Products and Solutions 1,287.1 1,494.3 1,670.4 1,287.1 1,670.4 1,559.0

-Services 899.8 906.0 968.9 899.8 968.9 947.1

-Distribution 388.8 367.0 482.2 388.8 482.2 491.3

102.0 113.2 224.5 102.0 224.5 142.5

- Learning

Total 772.1 1,016.8 1,155.5 2,964.5 2,643.9 3,740.7

Less : Intersegment revenue 7.5 15.1 37.6 50.1 56.8 84.4

Net Sales / Incom e from Operations 764.6 1,001.6 1,117.9 2,914.5 2,587.1 3,656.2

Segm ent Results (Profit / (Loss) before Tax and Interest from each segm ent)

- Hardw are Products and Solutions (10.1) 9.7 (14.8) 14.4 14.9 2.6

-Services (9.5) (15.1) (14.2) (44.7) (23.6) (39.8)

-Distribution - 1.5 2.9 6.6 4.2 6.4

-Learning (1.7) (0.3) (3.7) (4.1) (6.0) (79.1)

CONSOLIDATED SEGMENT RESULTS Rs crores

Unaudited Unaudited Audited

Three Months ended Year to Date Nine Months Nine Months Six Months period

Ended Ended Ended 31.12.2016 30.09.2016 31.12.2015 31.12.2016 31.12.2015 31.03.2016

Segm ent Revenue

-Hardw are Products and Solutions (Net) 60.1 76.7 111.0 259.3 273.9 357.3

-Services (Net) 233.6 249.9 259.0 728.2 513.6 757.7

-Distribution 475.8 685.9 780.8 1,966.1 1,844.7 2,609.1

2.7 4.2 4.8 10.9 11.8 16.5

HCL Infosystems Ltd. published this content on 28 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 February 2017 11:10:13 UTC.

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