HCL Insys declares 25% dividend, turnover up by 36%

BANGALORE, August 26 : HCL Infosystems Ltd. (HCL Insys)

has posted a turnover of Rs 950 crore for the year ended June 1999, up by

36 per cent from Rs 699.1 crores in the previous year. The operating

profit after tax is reported at Rs 58.52 crores as compared to Rs 26.13

crores reported for the previous year.

The Board of Directors has recommended a 25 per cent

dividend subject to the approval of members at the ensuing Annual General

Meeting. The company has modified its policy on revenue recognition to be

in better line with international norms. This has resulted in a one-time

adjustment of Rs 23.6 crore in the profit available for appropriation. In

addition, the company has also conservatively provided Rs 2.5 crores as

income tax for the period April-June 1999, though the actual liability

will depend on the tax position for the entire year 1999-2000. This is in

line with the corporate governance practices prevalent worldwide, said a

company release.

The company has declared that it will increase its

future focus on electronic commerce and will continue to dominate high-end

enterprise system sales, integration and services segments. In 1998-99,

HCL Insys launched specially developed services and solutions to tap the

e-commerce market. Prominent among these is WWW.OW!, an entire range of

complete, end-to-end services for the Internet. This initiative, includes

among others, setting up infrastructure for Internet Service Providers

(ISPs), solutions for cyber cafes, information kiosks, Net-on-TV,

corporate intranet and extranets, and electronic commerce (E-commerce).