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HCL Infosystems' net profit rockets by 520 per cent

HCL Infosystems Limited has announced unaudited first quarter financial results that ended September 30, 1998. The company has reported a net profit of Rs 125 million on a turnover of Rs 2.07 billion.

The corresponding figures for net profit and turnover for the same period in

T O D A Y

• Can't grow food on Net! • HCL net profit up 520% • Hardware sops likely • MTNL results

1997-98 were Rs 20 million and Rs 1.404 billion. HCL has thus recorded a growth of 520 per cent in net profit and 47.4 per cent in turnover over the same period last year.

For the year ended June 30, 1998, the company declared a net profit of Rs 261.2 million and a turnover of Rs 6.995 billion.

Significant contributors to HCL Infosystems' first quarter results are a growth in IT services, boosted by a declared focus on the customer, implementation of superior processes towards more accurate forecasting and inventory management, and an ongoing corporate quality programme.

Ajai Chowdhury, president and CEO, HCL Infosystems, said "Our first quarter results are strongly reflective of our success in implementation of the consolidation strategy, undertaken during the previous year. The quarter is marked by business gains spanning hardware, high-margin services, software exports and enterprise solution sales. This synergy, achieved across multiple solutions, diverse technologies and different platforms, has been enhanced by our quality-and customer centric approach.

Multiple factors have impacted HCL Infosystems' performance in the quarter. Among these is a mature channel strategy comprising the Direct Sales Organisation to address domestic customers in vertical markets such as manufacturing, banking and finance, telecom, government and utilities, a specialist Enterprise 2000 sales force and a dedicated channel for addressing of mass markets.

HCL Infosystems' Professional Services Organisation has catalysed the company's drive towards total technology integration. Its most rapidly growing division, the PSO provides single-window enterprise solutions in key vertical segments of telecommunications, manufacturing, finance and banking, government, utilities and transportation.

Also spearheading HCL Infosystems' thrust on software exports, PSO's infrastructure comprises a taskforce of 600 software specialist, three software factories, and dedicated centres of excellence for SAP and telecommunications technologies.

Major business wins in the quarter have been from Godrej and Boyce for hardware, networking and support expertise for an ERP project; Hyundai Motor India, for installation, commission and support of systems for Santro's nation-wide dealer management infrastructure, among other.

HCL Infosystems has bagged orders from TVS Suzuki, BPL Systems, the Rajiv Gandhi National Drinking Water Mission and SAP implementation for Hindustan Motors' Lancer car project.

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