The Hindu Business Line : HCL Info net down 23% in Q4

New Delhi, Sept. 2 HCL Infosystems Ltd on Tuesday posted a 23-per cent year-on-year drop in its consolidated net profit for the fourth quarter ended June 2008 to Rs 65.13 crore on the back of “lumpiness” in the Systems Integration business, slowdown in interest rate-sensitive consumer business, and rupee volatility.

“The systems integration business is not a linear billing model. The billing tends to be lumpy. However, we have a good booking position, having signed Rs 1,200 crore in SI contracts in the last five months. In addition, there has been an overall slowdown in the consumer market, on the back of higher cost of finance and EMIs,” HCL Infosystems Chief Financial Officer (CFO), Mr Sandeep Kanwar, said at a conference here.

These orders would turn into revenue for the company over the next three to four quarters.

The company’s gross sales rose 1.5 per cent on a consolidated basis, to Rs 3,155.47 crore from Rs 3,108.31 crore in the year ago period.

Segment-wise revenue

The revenue from computer systems business during the quarter was Rs. 876.6 crore, taking the full year revenue to Rs 3,388.9 crore, a growth of 22 per cent. Profit before interest & taxes for computer systems business during the quarter was Rs 39.1 crore, and the PBIT for the year was Rs 199.5 crore, a growth of 14 per cent.

Revenue from telecommunication & office automation business during the quarter was Rs 2,278.2 crore – this took the revenues for the year to Rs 9,222.8 crore. Profit before interest & taxes for Telecommunication & Office Automation business was Rs 70.9 crore, taking the PBIT for the year to Rs 285.4 crore.

Consolidated EPS for the year ended June 2008 stood at Rs 17.6 per share and consolidated net profit at Rs 300.15 crore, a five per cent fall over the previous year. The consolidated total income increased to Rs 12,489.36 crore from Rs 11,721.79 crore.

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