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New Delhi, Jan. 28 Buoyed by growth in its system integration business, IT hardware major HCL Infosystems Ltd on Monday posted a seven per cent rise in consolidated net profit for the second-quarter ended December 2007 at Rs 81.4 crore.

“Our strategy for computer products growth and system integration continued to yield good results.

“Also, introduction of new products in computing as well as the digital lifestyle helped revenue growth. We have also seen strong booking of new system integration contracts and have got contracts of over Rs 300 crore in the last quarter,” Mr Ajai Chowdhry, Chairman and CEO of HCL Infosystems, told reporters.

For the second quarter, the company’s consolidated revenue stood at Rs 3,306.6 crore against Rs 2,968.9 crore in the corresponding quarter of the previous year, up 11 per cent.

“While the company logged good growth in computer systems and other related products segment, the overall growth was somewhat held back due to the telecom business.

However, now that we have completed the process of realignment of territories following the renegotiated distribution contract with Nokia, we foresee an acceleration in the telecom business in the coming quarters,” he pointed out.

The operating margins rose to more than 6 per cent in the quarter from 5.8 per cent in the preceding quarter.

For computer systems and related business unit - which includes the system integration business - the net revenue rose to Rs 874.60 crore from Rs 609.64 crore in the year-ago period.

The telecommunication and office automation business earned revenue of Rs 2,395.11 crore against Rs 2,309.46 crore a year ago.

The company said it plans to double the number of its digital lifestyle stores to 100 by June.

HCL shares were up 5.75 per cent at Rs 206 on the BSE.

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