HCL Infosystems registers Rs. 1,815 Crore revenue in FY20

HCL Infosystems today announced its financial results for the year ended March 31st, 2020.

FY20 Business Highlights:

- FY20 revenue was Rs. 1,815 Crore vs. Rs. 3,875 Crore in FY19
- Distribution Business revenue for FY20 stood at Rs. 1,656 Crore vs. Rs. 3,722 in FY19
- Enterprise Distribution registered revenue of Rs. 1,083 Crore vs. Rs. 1,704 Crore in FY19
- Consumer Distribution registered revenue of Rs. 573 Crore in FY20 vs. Rs. 2,018 Crore in FY19
- Loss before interest, tax and exceptional items* (from continuing operations) was Rs 149.9 Crore
- Loss Before Tax & after Exceptional Items (from continuing operations and discontinued operations) was Rs. 72.8 Cr

Revenue from discontinued operations (incl. other income) in FY20 was Rs. 266.9 Crore and Profit before tax was Rs. 4.0 Crore.

Q4FY20 Business Highlights:

- Q4FY20 revenue was Rs. 228 Crore vs. Rs. 429 Crore in Q3FY20
- Distribution business revenue for Q4FY20 stood at Rs. 188 Crore vs Rs. 386 Crore in Q3FY20
- Enterprise Distribution revenue registered revenue of Rs. 142 Crore in Q4 FY20 vs. Rs.259 Crore in Q3FY20.
- Consumer Distribution registered revenue of Rs. 46 Crore in Q4FY20 vs. Rs.127 Crore in Q3FY20
- Loss before interest, tax and exceptional items* (from continuing operations) was Rs 47.3 Crore
- Loss Before Tax & after Exceptional Items (from continuing operations and discontinued operations) was Rs. 68.8 Crore

Revenue from discontinued operations (incl. other income) in Q4FY20 was Rs. 2.6 Crore and Loss before tax was Rs. 0.7 Crore.

Dr. Nikhil Sinha, Chairman Board of Directors, HCL Infosystems Ltd., commenting on the results said, "In FY20 we re-calibrated our business by focusing on the reduction of the Company's outstanding debt as well as reduction of business losses. As one of the action points in this strategy, we completed the divestment of our Singapore Services business and sale of two non-core properties, the proceeds from which were used to reduce debt.

The decline in Distribution business revenue is consistent with our plan to downsize these business and reduce losses, which we began to implement in the previous quarter after seeking advice from a reputed consultancy firm. Both our Distribution business, Enterprise and Consumer have been impacted and their losses have increased due to various factors such as adverse market conditions and thin margins. In our Systems Integration business, we continued to focus on project deliverables and recovering our outstanding dues from our existing customers."

Shares of HCL INFOSYSTEMS LTD. was last trading in BSE at Rs.7.83 as compared to the previous close of Rs. 8.24. The total number of shares traded during the day was 27860 in over 185 trades.

The stock hit an intraday high of Rs. 7.83 and intraday low of 7.83. The net turnover during the day was Rs. 218143.

Source : Equity Bulls

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