HCL Insys Q3 profits grows to Rs 18.2 cr

HCL Infosystems Ltd (HCL Insys), a technology integration company, announced its financial results for the third quarter ended March 31, 2001. Coinciding with that, company also completed its 25 years of operations and growth in the technology integration business. Over the last decade, it managed a good blend of its hardware, networking services and software services business.

Ajai Chowdhry, Chairman and CEO, HCL Insys said, "Our strategy of spreading services revenues between India and exports has proven correct. Again, the strategy of spreading overseas revenues between Asia Pacific, UK and US has helped. Also, our Asia Pacific revenues have grown extremely well." 

The company bagged a major networking order from Indian Overseas Bank involving implementation of Wide Area Network (WAN) in 11 cities covering 200 branches. It also won three contracts of consultancy for call centers in India. The corporate PC sales witnessed some huge orders coming to the company from various segments like banks (that from PNB and Bank of Rajasthan) and from the education sector (including mainly Karnataka schools). The company also bagged some large orders for its notebooks business from Infosys, PWC and E&Y. 

HCL Infosystems has also entered into a strategic alliance with ICICI to provide low cost finance options for its range of desktop computers. This has helped boost the company's sales in the fast growing home segment. It also launched Ericsson's Wireless Local Area Network (WLAN) and IP communication solutions in the Indian market.

The company recorded a turnover of Rs 336.2 crore as against Rs 318.2 crore in the corresponding quarter of the previous year. 

The profit after tax is Rs 18.2 crore as against Rs 16.2 crore in the corresponding quarter on the previous year. 

The company's total revenue in the nine month period ended March 31, 2001 has shown a growth of 14 percent wherein revenues have touched Rs 916.4 crore compared to Rs 803.6 crore in the corresponding period of the previous year. Consolidated services revenues increased by 49 percent from Rs 146.3 crore to Rs 218.0 crore taking the percentage of service business to 22 percent of total revenues.

This quarter, HCL Insys has seen robust growth. Notable amongst them was an order worth $ 2.7 million from Cisco for the implementation of enterprise wide resource planning system.