Info-tech

HCL Infosystems to consider sale of select businesses after loss widens

Our Bureau New Delhi | Updated on July 31, 2019 Published on July 31, 2019

Net losses widen to ₹40 crore in Q1

Noida-based information technology services company HCL Infosystems has reported a loss amounting to ₹40 crore for the first quarter ended June 30, widening from around ₹29 crore in the corresponding period last year.

The company is considering sale of its select businesses and assets to reduce its debts and finance cost burdens, it said in a statement adding that it was “monitoring its businesses, to assess requirement of any further restructuring or rationalisation required in order to reduce the financial losses.”

The company’s revenue also fell to ₹681 crore during the first quarter, down more than 39 per cent from ₹1,123 crore in April-June quarter last year.

“During the quarter, Enterprise and Consumer Distribution businesses had a subdued performance in revenue and margin. Consumer business suffered due to lack of exclusive product line up by the principal in e-commerce space. Enterprise business was impacted by competitive environment and market slowdown,” Rangarajan Raghavan, Managing Director, HCL Infosystems, said.

He said the company was executing existing contracts and focusing on collections in the System Integration and Solutions business. “However, collections continue to be a challenge especially in Power Sector,” he added.

Shares of HCL Infosystems closed at ₹11.44 a piece on the BSE on Wednesday, up 9.26 per cent from the previous close.

Published on July 31, 2019
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