HCL Infosystems Q1 net down 35%

NEW DELHI: HCL Infosystems Ltd., computer maker and hardware services

company, reported after trading hours on Thursday that its net profit fell 35

per cent in July-September from a year ago.

First-quarter net profit fell to Rs 124.7 million or Rs 3.91 per share from

Rs 192.2 million or Rs 6.02 a share a year earlier. Net sales dropped 19.8 per

cent to Rs 2.35 billion from Rs 2.93 billion.

"The net profit figure is slightly below par," said an analyst with

a domestic brokerage who requested anonymity. "There is pressure on

operating profit margins as the branded hardware segment is seeing intense

competition within domestic and foreign players."

The analyst had expected HCL Infosystems to post a first-quarter net profit

of Rs 129 millions. HCL Infosystems' shares sank 7.9 per cent to Rs 60.55 on

Thursday on the Bombay Stock Exchange; the main index fell 2.05 per cent. The

stock is up 33.8 per cent from its 2001 low of Rs 45.25 touched on September 21,

but is down 75 per cent from its 241.45 high struck on February 22.

Call centers



Based on the outskirts of the Indian capital, HCL Infosystems also offers
networking and e-commerce solutions and has ambitious plans to get into the call

center business. Last month HCL Infosystems said it planned to set up 30 call

centers with over 3,600 people across the country in association with US-based

solutions provider Stratasoft Inc.

The call center business is one of the fastest growing segments in India's

software and services industry due to the large and inexpensive pool of

educated, English-speaking graduates in the country.

In August the company reported net profit for the past year to June fell 5.6

per cent to Rs 689.7 million, on net sales of 11.62 billion, up 3.3 per cent.

(C) Reuters Limited.