Comments
HCL Infosystems is likely to take a hit of Rs 1,000 crore in its sales revenues on account of its Nokia business for the financial year. The company's Nokia practice includes its sales, service, business-to-business solutions and joint venture for its online application store OVI.
More than 50 per cent of HCL Infosystems revenues come from its Nokia business. “We may have to face a dip in sales of Rs 1,000 crore for the year. But it is a low-margin business and reduction in sales will not have much impact on our profits,” Mr Harsh Chitale, Chief Executive Officer of HCL Infosystems, told Business Line .
After taking a severe hit on its sales, Nokia had launched dual-SIM phones in June, with a bid to reach out to the huge demand for these phones which had a share of 40-45 per cent.
“Sales (of phones) have picked up significantly, particularly in the last 15 days of June. But this will have little impact on our overall revenues for the financial year (the firm's financial year ends June 30),” he said.
Consolidated figures for the financial year are to come.
Sales
For the first nine months ended March 31, 2011, the company reported sales of Rs 8,804 crore against Rs 8,845 crore in the same period the previous year. Of this, contribution from telecom distribution business stood at Rs 4,920 crore (Rs 5,509 crore), showing a drop of 519 crore in nine months.
Strain on revenues
Mr Harsh Chitale said the system integration business, too, would be under pressure with clients deferring decisions on spending. “We are going to have a couple of difficult quarters,” he said, responding to a question on whether the markets would brighten up.
“We have a backlog business of Rs 4,000 crore. We have incurred cost on these projects but they are not generating revenues,” he said.
Business plan for 2011-12
The CEO said the company is betting big on cloud, mobility and remote infrastructure management services as quality broadband making inroads into the country.
“We have piloted tablet with small and medium businesses. At present, we have two models with a price tag of Rs 11,000 and Rs 22,000. We will have a range of tablets by the time broadband is made available,” he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.