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HCL Info sees green in Telecom

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CIOL Bureau
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NEW DELHI: With a consolidated revenue figure of Rs 2705.1 crore, HCL Infosystems has reported 98 percent growth in its revenues for the financial year ending June 30, 2003 from the last year figure of Rs 1367.1 crore. The profit before tax (PAT) and impairment of assets is reported at Rs 112.1 crore as against Rs 20.3 crore in the last year, a growth of 451 percent. The PAT for the financial year 2002-03 stood at Rs 92.6 crore.



Revenue from computer systems business stood at Rs 1103.7 crore for FY 2002-03 as against a revenue of Rs 912.6 crore in the last FY, an increase of 21 percent. Profit before interest and taxes stood at Rs 91.3 crore, a 142 percent growth from last year's Rs 37.8 crore. The revenue from office automation increased 401 percent to Rs 1521.6 crore in FY 2002-03 as against Rs 303.7 crore in the last financial year. Profit before interest and taxes stood at Rs 47.9 crore as against Rs 15.6 crore in the previous year, a growth of 207 percent.



HCL Insys' Chairman and CEO, Ajai Chowdhry proudly says, "when we decided to concentrate on the domestic market, we knew deep inside that this will bring a landmark achievement for HCL Infosystems. We sold off our overseas subsidiaries and the software export business to concentrate solely on the Indian market, which is maturing in the IT, Telecom and ITeS segment." He adds, "I had a dream to create a hardware super power in India and we are proud that with our faith and work, we have been able to leave past majors like HP and Compaq."



According to the company, the major contributor to this growth was Telecom. EPS grew from Rs 4.82 to Rs 29.03. The capital reserves grew from Rs 237.85 crore to Rs 297.48 crore. Chowdhry remarked that the telecom market's maturity helped the company grow its revenue to the present mark.



For the fourth quarter ending June 30, 2003, the company reported a turnover of Rs 304.8 crore. The profit before tax for Q4 is reported at Rs 23.2 crore.



Talking about the catalyst in this performance, he said that Telecom market's growth, lowering of airtime and reduction of the cellphone duty fueled HCL Insys’ growth in a big way. According to Chowdhary, besides the cellular market in the telecom segment, the VoIP, telecom services in the ITeS segment and EPABX also contributed well in the company’s growth.



About the healthy bottomline, he said that the approach has been not just to cut costs but also to envisage quality revenue segments. "Rupee's strong positioning has also helped our profitability. This has greatly affected our production budgets," he added.



Speaking about the future plans of the company, he said that the production capacity is good for next few years. "With Telecom being the major growth grosses, we are bullish about the Telecom market on the whole. And on the hardware front, the retail outlets will see a ramp up soon."



For the new strategy, he said that HCL Insys would continue to concentrate on the domestic market and tap quality segments.





(CNS)

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