The Hindu Business Line : Domestic focus lifts HCL Info profits

BUOYED by growth in computers systems volumes and communications business, HCL Infosystems Ltd has registered 89-per cent rise in its consolidated net profit for the year ended June 2004 at Rs 175.1 crore, even as its fourth quarter profits grew about 34 per cent.

Its consolidated revenues surged to Rs 4,413 crore during 2003-04 from Rs 2,705.1 crore in the previous year, an increase of 63 per cent. Consolidated results include performance of HCL Infinet Ltd, a 100 per cent subsidiary of HCL Infosystems Ltd.

HCL said that revenues from computer systems business stood at Rs 1,523.3 crore against Rs 1,103.7 crore in the previous year, while that from office automation and telecommunication space was Rs 2,876.8 crore against Rs 1,521.6 crore last year.

"Till now focus has been on exports, but it is time attention was paid to the domestic market. We decided to go deeply in the domestic market and that has reflected on growth of business and our results," Mr Ajai Chowdhry, Chairman and CEO of HCL Infosystems, said at a news conference here today.

For the fourth quarter ended June 2004, HCL's consolidated revenues stood at Rs 1,321.5 crore against Rs 905.2 crore in the year-ago period, translating into 46-per cent growth.

The board of directors has recommended a final dividend of Rs 7 per fully paid-up share taking the total dividend for the year 2003-04 to 210 per cent.

On a standalone basis, HCL's gross sales stood at Rs 1,523.25 crore for the year ended June 2004 as compared to Rs 1,651.22 crore previous year.

"Last year we had restructured out business wherein call centre business and the software businesses were hived off. So these figures are not comparable," he added.

While declining to comment on the future outlook for the company, Mr Chowdhry said that while PC sales in India stood at three million units last year, that of China was 14 million units. "The gap is huge and, therefore, the potential for the domestic market is also significant," he said.

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