HCL Infosystems Reports Revenue of Rs 881 Crore in Q2 FY 2018

Business Wire India

• 29% increase in Revenue on Q-o-Q basis
• Consumer Distribution business witnessed good response to multi-brand strategy

Quarter-on-Quarter Business Highlights

• Q2 FY18 revenue at Rs. 881 Crore vs. Rs. 685 Crore in Q1 FY18
• Enterprise Business revenue stood at Rs. 551 Crore in Q2 FY18
• Consumer Business recorded revenue of Rs. 299 Crore in Q2 FY18, up from Rs.69 Crore in Q1 FY18, as the new multi brand business model gained traction
• Profit / (Loss) before interest, tax & exceptional items is Rs. (22.5) Crore vs. Rs. (22.9) Crore in the preceding quarter
• Exceptional items for the quarter include impairment of goodwill for Rs. 390 crores for Services business. As part of its strategy, the Company continues to review and streamline including right size, disengage or wind-down of components of its service offerings, segments and geographies. This has led to an impairment of goodwill in current quarter for the services business.
• Profit / (Loss) before tax and after exceptional items was Rs. (454.4) Crore in Q2 vs. Rs. (66.5) Crore in the preceding quarter

HCL Infosystems, India’s pioneer IT Services, Solutions & Distribution Company, today announced its financial results for the quarter ended September 30, 2017.

Mr. Premkumar, Executive Vice-Chairman and Managing Director, HCL Infosystems Ltd., commenting on the results said, “The Company’s transformation journey is on course with the new multi-brand Consumer Distribution business model achieving a significant growth in revenue. The consolidation and optimization in our Enterprise Business continues on its planned path. Due to right sizing of our portfolio in Enterprise Services, an impairment charge for goodwill of Rs. 390 Crore was taken in the books.”

Consumer Distribution

In this business, the transition from a single-brand into a multi-brand distribution model has witnessed early success. The Consumer Distribution business has achieved robust traction in the quarter with revenue of Rs. 299 crore, up from Rs. 69 crore in the previous quarter.

Tie-ups with leading telecom OEMs like HMD Global and release of new Nokia models enabled the business to report a robust growth. The business also witnessed increased traction in strategic channels like ecommerce.

The company also signed a Distributor Agreement for distribution of iPhone and other Apple products with M/s Apple India Private Limited (M/s Apple) in the quarter. The business also distributed the iPhone 8 & iPhone 8+ in aligned Territories & Channels.

Enterprise Business

The core Enterprise Business (consisting of Enterprise Products Distribution, Domestic Enterprise Services, Global Enterprise Services and Care Services) continued on its planned journey.

The Enterprise Products Distribution business posted revenue of Rs. 316 Crore with the channel performing in a robust manner. The business also won engagements from marquee customers in areas such as High Performance Computing and Virtualization solutions.

The Enterprise Services business (comprising Domestic Services, Global Services and Care Services) had revenue of Rs. 235 Crore in Q2 FY18.

System Integration (SI) & Solutions

The build phase of projects in our SI and Solutions business is nearing completion and the business registered revenue of Rs. 43 Crore during the second quarter of FY18. The total order book size stood at Rs. 816 Crore as on 30^th September 2017.