Description
global Electronics, Computing and IT company based in Noida, India. The company comprises of two publicly listed companies,HCL Technologies and HCL Infosystems.
ASSIGNMENT COMPANY PROFILE
HCL
SUBMITTED TO, JOEINA MATHEW SUBMITTED BY,
CONTENT
INTRODUCTION FOUNDER AND HISTORY MANAGEMENT PHILOSOPHY VISION MISSION MILESTONES ANNUAL TURNOVER ORGANIZATION STRUCTURE OVERALL NUMBER OF EMPLOYEES CORPORATE GOVERNANCE AT HCL STRATEGIES INVOLVEMENT IN OTHER ACTIVITIES FINANCIALS LISTING & STOCK EXCHANGE BONUS HISTORY (HCL TECHNOLOGIES) AWARDS
INTRODUCTION HCLis a global Electronics, Computing and IT company based in Noida, India. The company comprises of two publicly listed companies,HCL Technologies and HCL Infosystems. HCL was focused on addressing the IT hardware market in India for the first two decades of its existence with some activity in the global market. On termination of the joint venture with HP in 1996, HCL became an enterprise which comprises HCL Technologies (to address the global IT services market) and HCL Infosystems (to address the Indian and APAC IT hardware market). HCL has since then operated as a holding company. FOUNDER AND HISTORY Shiv Nadar is the founder of HCL. He founded HCL in 1976 in a Delhi "barsaati". In 1978, HCL developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC. In 1980, HCL introduced bit sliced, 16-bit processor based micro-computer. In 1983, HCL Indigenously developed architecture, at the same time as global IT peers. In 1986, HCL became the largest IT Company in India. In 1988, HCL introduced fine grained multi-processor Unix3 years ahead of "Sun" and "HP". In 1991, HCL entered into a joint venture Hewlett Packard and HCL-Hewlett Packard Ltd. was formed. The joint developed multi-processor UNIX for HP and heralded HCL's entry into contract R&D. In 1997, HCL Infosystems was formed. In the same year HCL ventured into software services. In 1999, HCL Technologies Ltd issued an IPO and became a public listed company. In 2001, HCL BPO was incorporated and HCL Infosystems became the largest hardware company. In 2002, software businesses of HCL
Infosystems and HCL Technologies were merged. In 2005, HCL set up first Power PC architecture design centre outside of IBM. In the same year HCL Infosystems launched sub Rs.10, 000 PC. In 2006, HCL Infosystems became the first company in India to launch the New Generation of High Performance Server Platforms Powered by Intel Dual - Core Xeon 5000 Processor. Today, HCL has a turnover of over US$4billion. The Initial years: Developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC – in 1978. This micro-computer virtually gave birth to the Indian computer industry. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP. The Growth Phase: Along with the swiftly growing software technology industry, HCL, which was hitherto known as the pioneer in modern computing made the advent into software development. HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. The World Phase: Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane. And this it does across 23 countries and across 360 service locations in India.
MANAGEMENT PHILOSOPHY In 2005, HCL Technologies commenced on an internal management transformation program. Vineet Nayar, President in 2005, introduced a new working model & philosophy 'Employees First’, making employees at the center of the change in the organization. The philosophy recognizes employees as strategic elements of an organization. It democratizes the company's functions and its way of working. Today, this unique management philosophy has been recognized and praised worldwide for empowering employees to become the drivers of growth. The philosophy has been the subject of a Harvard Business School case study and have prompted Fortune magazine to characterize the company under his leadership as having “the world’s most modern management.” HCL has been cited by Business Week as one of five “most influential emerging companies,” and it was named Best Employer in India by the global human resources services company Hewitt Associates. Recently, HCL ws announced as one of the most Democratic Workplaces by WorldBlu. VISION "Together we create the enterprises of tomorrow" MISSION "To provide world-class information technology solutions and services to enable our customers to serve their customers better"
MILESTONES 1976: Hindustan Computers Limited (HCL) is born. 1977: Forms distribution alliance with Toshiba for copiers & notebooks 1978: HCL successfully ships in-housed designed Micro computer at the same time as APPLE. 1983: Indigenously develops an RDBMS, a Networking OS & Client Server Architecture, at the same time as global IT peers. 1986: HCL becomes the largest IT Company in India. 1989: Introduces fined-grained multi-processor UNIX, 3 years ahead of “SUN” and “HP”. 1991: HCL – Hewlett Packward JV develops multi-processor UNIX for HP and heralds HCL’s entry into contract R&D. 1994:
Forges Distribution Alliances with Ericsson Switches and Nokia Cell Phones. 1997: HCL’s R&D spun-off as HCL Technologies – marks advent into software services. 2001: JV with Deutsche Bank. Acquires British Telecom’s Apollo Contact Centre in Belfast, Northern Ireland. 2003: HCL becomes the first company to cross the 100,000 unit milestone in the Indian Desktop PC market. 2004: HCL Technologies get accorded by Meta Spectrum with Leaders status in Offshore Outsourcing. HCL Info systems continues to be the largest manufacturer of PC’s in India. 2005: JV with NEC, Japan HCL setups first Power PC architecture design centre outside of IBM. HCL Info systems launches sub Rs. 10,000 PC. 2006:
HCL Info systems ties up with Apple for iPod distribution. HCL Technologies signs largest ever software services deal with DSG. 2007: HCL as an enterprise crosses the $4 billion watermark. HCL announces opening of its second European outsourcing facility in June with the establishment of a delivery centre in Krakow, Poland. HCL enters a US$ 30million partnership with Konica Minolta Group (KM), to provide software Services. This is one of the largest engagements in the country, with a Japanese company. HCL commences production in its ISO 14001 and ISO 9001:2000 certified – second manufacturing facility in Rudrapur, Uttaranchal HCL Info systems wins CNBC Awaaaz consumer award for Desktops. HCL BPO is world’s first BPO to get PCMM (People’s Capability Maturity Model) certified.
ANNUAL TURNOVER HCL Info systems has reported a turnover of Rs 409.7 crore compared to Rs 235.5 crore in the corresponding quarter of the previous year. Profit before tax stood at Rs 13.6 crore as against Rs 14.1 crore in the same period last year. Net profit after tax increased in the current quarter by 26% over the previous quarter ending June ’07.
ORGANIZATION STRUCTURE
Shiv Nadar is the founder as well as the chairman of HCL.
Leadership Team
VINEET NAYAR
CEO, HCL Technologies
RANJIT NARASIMHAN
President & CEO - BPO Services, HCL Technologies Ltd
ANIL CHANANA
Executive Vice President - Finance, HCL Technologies
ANANT GUPTA
President - Infrastructure Services Division, HCL Technologies
Board of Directors
SHIV NADAR
Founder - HCL Chairman & Chief Strategy Officer - HCL Technologies
VINEET NAYAR
CEO, HCL Technologies
ROBIN ABRAMS
Director
OVERALL NUMBER OF EMPLOYEES Today, HCL has 45,000 employees of diverse nationalities, operating across 17 countries including 360 service centers in India. HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology majors. CORPORATE GOVERNANCE AT HCL
HCL believes that strong corporate governance practices should be integral to all activities of its Group Companies to ensure efficient conduct of the affairs of the Companies, while upholding the core values of transparency, integrity, honesty, and accountability. The annual “Directions” meet where the CEO of HCL Technologies interacts with all employees and arrive at the strategic direction the company needs to take, and the HCL Global Meet where its customers, investors, analysts all interact together in a free flowing discussion, are just two examples of how transparency has become a part of the HCL Enterprise culture.
The HCL corporate governance practices have matured over the 32 year journey
of the Enterprise; and are in compliance with the requirement of the revised guidelines on corporate governance stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges
STRATEGIES ? Emphasis on a strong management team ? Emphasis on front run emerging technologies ? Non-linear growth model ? Emphasis on quality revenue mix ? Employee Development and Contribution ? Emphasis on earnings led growth
INVOLVEMENT IN OTHER ACTIVITIES
? ? ?
Aerospace and Defense Financial Services Retail & Corporate Banking, Capital Markets, Insurance Healthcare Telecom Automotive Hi-tech, Semiconductor, Storage, Consumer Electronics Media & Entertainment
?
Travel, Transportation & Logistics Government Life Sciences Pharmaceutical, Medical Devices Retail & Consumer Energy and Utilities
? ? ?
? ? ? ?
? ?
?
Product Engineering & Technology Development The Engineering and R & D services department runs the largest outsourced engineering center outside the US which is a testimony to the 30 year product engineering experience. The company offers a comprehensive range of R&D and Engineering services to component vendors, OEMs, ODMs and ISVs across multiple industry segments and domains. Infrastructure HCL Infrastructure Management Division is focused on addressing the growing demand for the cost-effective management of technology infrastructure across geographically dispersed locations. IT Infrastructure Management is in the HCL DNA, drawing resources from the 30 year pioneering heritage in the area of computing, in line with global giants BPO Business Processing Outsourcing is heading towards a maturity level where a new form of BPO, called Transformational BPO, is evolving that constitutes Full Process Outsourcing and Multiple Process Outsourcing . The evolving trend is more focused towards compliance , time-to-market, focus on core process, and quality improvement rather than cost savings. Applications Leveraging strong partnerships with platform / product companies, the team of applications professionals deliver unprecedented value to few of the largest players in the field of Financial Services, Retail and Healthcare.
IT Hardware HCL Infosystems portfolio of products covers the entire spectrum of the information technology needs of its customers. By virtue of the immense diversity of markets and customers that it address, HCL Infosystems products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers. Telecom and Imaging Products and Retail HCL Infinet covers a range of telecom and imaging products including enterprise networking. HCL tied up with Nokia in 1995 with the sale and services of Nokia mobile phones in India. Networking and Network Integration Network Management involves Network Monitoring of Bandwidth Utilization, Network Errors / Collisions, Network Troubleshooting, Day-to-day Network Operations, Network performance monitoring, Tuning Network Operating System and advise action plan.
FINANCIALS
Balance Sheet
------------------- in Rs. Cr. ------------------Jun '11 12 mths Jun '10 12 mths Jun '09 12 mths Jun '08 12 mths Jun '07 12 mths
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities
137.74 137.74 1.00 0.00 5,720.41 0.00 5,859.15 1,029.87 0.29 1,030.16 6,889.31 Jun '11 12 mths
135.76 135.76 2.01 0.00 4,798.09 0.00 4,935.86 1,030.51 366.88 1,397.39 6,333.25 Jun '10 12 mths
134.05 134.05 0.47 0.00 3,353.72 0.00 3,488.24 123.81 389.92 513.73 4,001.97 Jun '09 12 mths
133.27 133.27 1.71 0.00 3,079.85 0.00 3,214.83 25.24 0.09 25.33 3,240.16 Jun '08 12 mths
132.74 132.74 0.00 0.00 3,292.28 0.00 3,425.02 40.77 0.12 40.89 3,465.91 Jun '07 12 mths
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses
2,880.57 1,584.64 1,295.93 568.73 2,653.27 124.97 1,657.26 1,063.72 2,845.95 1,700.92 0.00 4,546.87 0.00 1,572.65 602.84 2,175.49 2,371.38 0.00
2,293.37 1,349.54 943.83 477.20 2,233.20 12.04 2,084.70 64.83 2,161.57 1,750.46 924.60 4,836.63 0.00 1,724.01 433.60 2,157.61 2,679.02 0.00
1,957.86 1,100.88 856.98 417.56 562.75 87.01 1,489.26 144.00 1,720.27 1,817.97 1,221.83 4,760.07 0.00 2,217.44 377.95 2,595.39 2,164.68 0.00
1,599.61 874.32 725.29 419.03 1,797.34 0.00 980.02 162.87 1,142.89 1,183.99 524.01 2,850.89 0.00 1,828.85 723.54 2,552.39 298.50 0.00
1,332.67 662.58 670.09 212.86 1,988.86 0.00 712.48 105.93 818.41 934.44 275.01 2,027.86 0.00 1,003.02 430.74 1,433.76 594.10 0.00
Total Assets Contingent Liabilities
Book Value (Rs)
6,889.31 2,677.49
85.06
6,333.25 2,505.21
72.69
4,001.97 3,317.46
52.04
3,240.16 469.36
48.22
3,465.91 418.65
51.61
Profit & Loss account Jun '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 274.79 126.94 3,259.09 373.35 0.00 1,353.42 0.00 5,387.59 Jun '11 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend 1,516.37 1,672.83 101.39 1,571.44 291.37 0.00 1,280.07 0.00 1,280.07 91.60 1,198.28 5,112.80 0.00 6,794.48 0.00 6,794.48 156.46 109.48 7,060.42
------------------- in Rs. Cr. ------------------Jun '10 12 mths Jun '09 12 mths Jun '08 12 mths Jun '07 12 mths
5,078.76 0.00 5,078.76 114.56 -82.52 5,110.80 2.95 86.93 2,137.82 434.77 724.41 195.71 0.00 3,582.59 Jun '10 12 mths 1,413.65 1,528.21 101.36 1,426.85 274.03 0.00 1,152.82 3.43 1,156.25 100.01 1,056.58 3,579.64 0.00
4,675.09 0.00 4,675.09 91.49 0.00 4,766.58 0.00 100.28 1,874.10 492.39 637.66 180.99 0.00 3,285.42 Jun '09 12 mths 1,389.67 1,481.16 35.35 1,445.81 251.89 0.00 1,193.92 0.00 1,193.92 196.61 997.31 3,285.42 0.00
4,615.39 0.00 4,615.39 -108.91 0.00 4,506.48 0.00 0.00 1,621.35 746.92 639.05 381.11 0.00 3,388.43 Jun '08 12 mths 1,226.96 1,118.05 24.93 1,093.12 217.87 0.00 875.25 0.00 875.25 94.60 780.65 3,388.43 0.00
3,768.62 0.00 3,768.62 439.42 0.00 4,208.04 0.00 0.00 1,322.59 577.24 617.20 314.51 0.00 2,831.54 Jun '07 12 mths 937.08 1,376.50 20.60 1,355.90 178.21 0.00 1,177.69 0.00 1,177.69 75.87 1,101.82 2,831.54 0.00
Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
514.49 84.39 6,886.89 17.40 375.00 85.06
270.20 45.40 6,787.84 15.57 200.00 72.69
469.61 79.73 6,702.57 14.88 350.00 52.04
598.58 101.72 6,663.40 11.72 450.00 48.22
525.59 81.60 6,636.83 16.60 400.00 51.61
Cash Flow Jun '11 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 1289.88 1519.39 -535.03 -882.56 102.86 64.84 167.70
------------------- in Rs. Cr. ------------------Jun '10 12 mths 1152.82 739.26 -1399.11 583.38 -79.16 144.00 64.84 Jun '09 12 mths 1193.92 587.94 306.83 -215.82 678.95 686.88 1365.83 Jun '08 12 mths 875.25 1056.84 -148.53 -602.26 305.94 380.94 686.88 Jun '07 12 mths 1177.69 997.93 -341.46 -381.57 274.90 106.22 380.94
LISTING & STOCK EXCHANGE The Stock Exchange, Mumbai, National Stock Exchange of India Ltd. Key Dates Year Ending Month Jun AGM Date (Month) Oct Book Closure Date (Month) Listing Information Face Value Of Equity Shares Market Lot Of Equity Shares BSE Code 532281 NSE Code HCLTECH BSE Group A 2 1
Oct
Whether The Company Forms A Part Of The Following Indices -
Sensex No Nifty Yes BSE-100 Yes BSE-200 Yes S&P CNX 500 Listing On Listed On Ltd.
Yes
The Stock Exchange, Mumbai, National Stock Exchange of India
Current share price (as on 28 Aug) % increase: 306.20 Day’s increase: -5.75 Current value: -1.84% Volume 382,246 Prev Close 311.95 Day's H/L (Rs) 314.90 - 304.00 52wk H/L (Rs) 315.40 - 89.10 Mkt Cap (Rs Cr) 20,392.92
BONUS HISTORY (HCL TECHNOLOGIES) Announcement Date 14-12-2006 Bonus Ratio 1:1 Record Date 16-03-2007 Ex-Bonus Date 15-03-2007
AWARDS India's Most Preferred Personal Computer Brand by CNBC AWAAZ Consumer Award 2007
India's 'No. 1 PC Vendor' consecutively for six years. HCL among the Top 3 IT companies for the last 3 years, DQ & IDC,Best Employer Survey, 'Best employer 2005' with Five Star Ratings Top 50 Fastest Growing Technology Companies in India & 'Top 500 Fastest Growing Technology Companies in Asia Pacific' by 'Deloitte & Touche' Vineet Nayar appointed to the Board of Directors at HCL Technologies Noida, Aug 1, 2008 : HCL Technologies, India’s leading Global Technology and IT Services company, announced that Vineet Nayar, CEO, HCL Technologies, has been appointed to the Board of HCL Technologies as a Wholetime Director with effect from August 1, 2008. Shiv Nadar, Founder - HCL and Chairman & Chief Strategy Officer, HCL Technologies said - “Vineet’s appointment to the Board reflects HCL’s commitment to nurturing talent, positioning it in key areas of leadership and building lasting institutions of excellence. Vineet joined HCL - his first and only job, as Senior Management Trainee in 1985. He created HCL Comnet, and positioned HCL as a pioneer and industry leader globally in the Remote Infrastructure Management space. He has led HCL’s transformation strategy, now a Harvard Business School case study. Vineet will now continue to bring his leadership skills to bear on HCL’s future but in a larger context - in developing its vision, governance and strategy beyond the confines of HCL’s business. “ Vineet Nayar, now CEO and Wholetime Director, HCL Technologies, said, “I am honoured by the Board’s decision, and look forward to being part of the future growth of HCL in all its larger dimensions as a global and responsible corporate
citizen. In my 23 year association with HCL, this is another opportunity for me to share and shape the larger transformation journey with Shiv Nadar, the board, and my team members across the HCL Enterprise.”
doc_257958207.doc
global Electronics, Computing and IT company based in Noida, India. The company comprises of two publicly listed companies,HCL Technologies and HCL Infosystems.
ASSIGNMENT COMPANY PROFILE
HCL
SUBMITTED TO, JOEINA MATHEW SUBMITTED BY,
CONTENT
INTRODUCTION FOUNDER AND HISTORY MANAGEMENT PHILOSOPHY VISION MISSION MILESTONES ANNUAL TURNOVER ORGANIZATION STRUCTURE OVERALL NUMBER OF EMPLOYEES CORPORATE GOVERNANCE AT HCL STRATEGIES INVOLVEMENT IN OTHER ACTIVITIES FINANCIALS LISTING & STOCK EXCHANGE BONUS HISTORY (HCL TECHNOLOGIES) AWARDS
INTRODUCTION HCLis a global Electronics, Computing and IT company based in Noida, India. The company comprises of two publicly listed companies,HCL Technologies and HCL Infosystems. HCL was focused on addressing the IT hardware market in India for the first two decades of its existence with some activity in the global market. On termination of the joint venture with HP in 1996, HCL became an enterprise which comprises HCL Technologies (to address the global IT services market) and HCL Infosystems (to address the Indian and APAC IT hardware market). HCL has since then operated as a holding company. FOUNDER AND HISTORY Shiv Nadar is the founder of HCL. He founded HCL in 1976 in a Delhi "barsaati". In 1978, HCL developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC. In 1980, HCL introduced bit sliced, 16-bit processor based micro-computer. In 1983, HCL Indigenously developed architecture, at the same time as global IT peers. In 1986, HCL became the largest IT Company in India. In 1988, HCL introduced fine grained multi-processor Unix3 years ahead of "Sun" and "HP". In 1991, HCL entered into a joint venture Hewlett Packard and HCL-Hewlett Packard Ltd. was formed. The joint developed multi-processor UNIX for HP and heralded HCL's entry into contract R&D. In 1997, HCL Infosystems was formed. In the same year HCL ventured into software services. In 1999, HCL Technologies Ltd issued an IPO and became a public listed company. In 2001, HCL BPO was incorporated and HCL Infosystems became the largest hardware company. In 2002, software businesses of HCL
Infosystems and HCL Technologies were merged. In 2005, HCL set up first Power PC architecture design centre outside of IBM. In the same year HCL Infosystems launched sub Rs.10, 000 PC. In 2006, HCL Infosystems became the first company in India to launch the New Generation of High Performance Server Platforms Powered by Intel Dual - Core Xeon 5000 Processor. Today, HCL has a turnover of over US$4billion. The Initial years: Developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC – in 1978. This micro-computer virtually gave birth to the Indian computer industry. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP. The Growth Phase: Along with the swiftly growing software technology industry, HCL, which was hitherto known as the pioneer in modern computing made the advent into software development. HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. The World Phase: Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane. And this it does across 23 countries and across 360 service locations in India.
MANAGEMENT PHILOSOPHY In 2005, HCL Technologies commenced on an internal management transformation program. Vineet Nayar, President in 2005, introduced a new working model & philosophy 'Employees First’, making employees at the center of the change in the organization. The philosophy recognizes employees as strategic elements of an organization. It democratizes the company's functions and its way of working. Today, this unique management philosophy has been recognized and praised worldwide for empowering employees to become the drivers of growth. The philosophy has been the subject of a Harvard Business School case study and have prompted Fortune magazine to characterize the company under his leadership as having “the world’s most modern management.” HCL has been cited by Business Week as one of five “most influential emerging companies,” and it was named Best Employer in India by the global human resources services company Hewitt Associates. Recently, HCL ws announced as one of the most Democratic Workplaces by WorldBlu. VISION "Together we create the enterprises of tomorrow" MISSION "To provide world-class information technology solutions and services to enable our customers to serve their customers better"
MILESTONES 1976: Hindustan Computers Limited (HCL) is born. 1977: Forms distribution alliance with Toshiba for copiers & notebooks 1978: HCL successfully ships in-housed designed Micro computer at the same time as APPLE. 1983: Indigenously develops an RDBMS, a Networking OS & Client Server Architecture, at the same time as global IT peers. 1986: HCL becomes the largest IT Company in India. 1989: Introduces fined-grained multi-processor UNIX, 3 years ahead of “SUN” and “HP”. 1991: HCL – Hewlett Packward JV develops multi-processor UNIX for HP and heralds HCL’s entry into contract R&D. 1994:
Forges Distribution Alliances with Ericsson Switches and Nokia Cell Phones. 1997: HCL’s R&D spun-off as HCL Technologies – marks advent into software services. 2001: JV with Deutsche Bank. Acquires British Telecom’s Apollo Contact Centre in Belfast, Northern Ireland. 2003: HCL becomes the first company to cross the 100,000 unit milestone in the Indian Desktop PC market. 2004: HCL Technologies get accorded by Meta Spectrum with Leaders status in Offshore Outsourcing. HCL Info systems continues to be the largest manufacturer of PC’s in India. 2005: JV with NEC, Japan HCL setups first Power PC architecture design centre outside of IBM. HCL Info systems launches sub Rs. 10,000 PC. 2006:
HCL Info systems ties up with Apple for iPod distribution. HCL Technologies signs largest ever software services deal with DSG. 2007: HCL as an enterprise crosses the $4 billion watermark. HCL announces opening of its second European outsourcing facility in June with the establishment of a delivery centre in Krakow, Poland. HCL enters a US$ 30million partnership with Konica Minolta Group (KM), to provide software Services. This is one of the largest engagements in the country, with a Japanese company. HCL commences production in its ISO 14001 and ISO 9001:2000 certified – second manufacturing facility in Rudrapur, Uttaranchal HCL Info systems wins CNBC Awaaaz consumer award for Desktops. HCL BPO is world’s first BPO to get PCMM (People’s Capability Maturity Model) certified.
ANNUAL TURNOVER HCL Info systems has reported a turnover of Rs 409.7 crore compared to Rs 235.5 crore in the corresponding quarter of the previous year. Profit before tax stood at Rs 13.6 crore as against Rs 14.1 crore in the same period last year. Net profit after tax increased in the current quarter by 26% over the previous quarter ending June ’07.
ORGANIZATION STRUCTURE
Shiv Nadar is the founder as well as the chairman of HCL.
Leadership Team
VINEET NAYAR
CEO, HCL Technologies
RANJIT NARASIMHAN
President & CEO - BPO Services, HCL Technologies Ltd
ANIL CHANANA
Executive Vice President - Finance, HCL Technologies
ANANT GUPTA
President - Infrastructure Services Division, HCL Technologies
Board of Directors
SHIV NADAR
Founder - HCL Chairman & Chief Strategy Officer - HCL Technologies
VINEET NAYAR
CEO, HCL Technologies
ROBIN ABRAMS
Director
OVERALL NUMBER OF EMPLOYEES Today, HCL has 45,000 employees of diverse nationalities, operating across 17 countries including 360 service centers in India. HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology majors. CORPORATE GOVERNANCE AT HCL
HCL believes that strong corporate governance practices should be integral to all activities of its Group Companies to ensure efficient conduct of the affairs of the Companies, while upholding the core values of transparency, integrity, honesty, and accountability. The annual “Directions” meet where the CEO of HCL Technologies interacts with all employees and arrive at the strategic direction the company needs to take, and the HCL Global Meet where its customers, investors, analysts all interact together in a free flowing discussion, are just two examples of how transparency has become a part of the HCL Enterprise culture.
The HCL corporate governance practices have matured over the 32 year journey
of the Enterprise; and are in compliance with the requirement of the revised guidelines on corporate governance stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges
STRATEGIES ? Emphasis on a strong management team ? Emphasis on front run emerging technologies ? Non-linear growth model ? Emphasis on quality revenue mix ? Employee Development and Contribution ? Emphasis on earnings led growth
INVOLVEMENT IN OTHER ACTIVITIES
? ? ?
Aerospace and Defense Financial Services Retail & Corporate Banking, Capital Markets, Insurance Healthcare Telecom Automotive Hi-tech, Semiconductor, Storage, Consumer Electronics Media & Entertainment
?
Travel, Transportation & Logistics Government Life Sciences Pharmaceutical, Medical Devices Retail & Consumer Energy and Utilities
? ? ?
? ? ? ?
? ?
?
Product Engineering & Technology Development The Engineering and R & D services department runs the largest outsourced engineering center outside the US which is a testimony to the 30 year product engineering experience. The company offers a comprehensive range of R&D and Engineering services to component vendors, OEMs, ODMs and ISVs across multiple industry segments and domains. Infrastructure HCL Infrastructure Management Division is focused on addressing the growing demand for the cost-effective management of technology infrastructure across geographically dispersed locations. IT Infrastructure Management is in the HCL DNA, drawing resources from the 30 year pioneering heritage in the area of computing, in line with global giants BPO Business Processing Outsourcing is heading towards a maturity level where a new form of BPO, called Transformational BPO, is evolving that constitutes Full Process Outsourcing and Multiple Process Outsourcing . The evolving trend is more focused towards compliance , time-to-market, focus on core process, and quality improvement rather than cost savings. Applications Leveraging strong partnerships with platform / product companies, the team of applications professionals deliver unprecedented value to few of the largest players in the field of Financial Services, Retail and Healthcare.
IT Hardware HCL Infosystems portfolio of products covers the entire spectrum of the information technology needs of its customers. By virtue of the immense diversity of markets and customers that it address, HCL Infosystems products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers. Telecom and Imaging Products and Retail HCL Infinet covers a range of telecom and imaging products including enterprise networking. HCL tied up with Nokia in 1995 with the sale and services of Nokia mobile phones in India. Networking and Network Integration Network Management involves Network Monitoring of Bandwidth Utilization, Network Errors / Collisions, Network Troubleshooting, Day-to-day Network Operations, Network performance monitoring, Tuning Network Operating System and advise action plan.
FINANCIALS
Balance Sheet
------------------- in Rs. Cr. ------------------Jun '11 12 mths Jun '10 12 mths Jun '09 12 mths Jun '08 12 mths Jun '07 12 mths
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities
137.74 137.74 1.00 0.00 5,720.41 0.00 5,859.15 1,029.87 0.29 1,030.16 6,889.31 Jun '11 12 mths
135.76 135.76 2.01 0.00 4,798.09 0.00 4,935.86 1,030.51 366.88 1,397.39 6,333.25 Jun '10 12 mths
134.05 134.05 0.47 0.00 3,353.72 0.00 3,488.24 123.81 389.92 513.73 4,001.97 Jun '09 12 mths
133.27 133.27 1.71 0.00 3,079.85 0.00 3,214.83 25.24 0.09 25.33 3,240.16 Jun '08 12 mths
132.74 132.74 0.00 0.00 3,292.28 0.00 3,425.02 40.77 0.12 40.89 3,465.91 Jun '07 12 mths
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses
2,880.57 1,584.64 1,295.93 568.73 2,653.27 124.97 1,657.26 1,063.72 2,845.95 1,700.92 0.00 4,546.87 0.00 1,572.65 602.84 2,175.49 2,371.38 0.00
2,293.37 1,349.54 943.83 477.20 2,233.20 12.04 2,084.70 64.83 2,161.57 1,750.46 924.60 4,836.63 0.00 1,724.01 433.60 2,157.61 2,679.02 0.00
1,957.86 1,100.88 856.98 417.56 562.75 87.01 1,489.26 144.00 1,720.27 1,817.97 1,221.83 4,760.07 0.00 2,217.44 377.95 2,595.39 2,164.68 0.00
1,599.61 874.32 725.29 419.03 1,797.34 0.00 980.02 162.87 1,142.89 1,183.99 524.01 2,850.89 0.00 1,828.85 723.54 2,552.39 298.50 0.00
1,332.67 662.58 670.09 212.86 1,988.86 0.00 712.48 105.93 818.41 934.44 275.01 2,027.86 0.00 1,003.02 430.74 1,433.76 594.10 0.00
Total Assets Contingent Liabilities
Book Value (Rs)
6,889.31 2,677.49
85.06
6,333.25 2,505.21
72.69
4,001.97 3,317.46
52.04
3,240.16 469.36
48.22
3,465.91 418.65
51.61
Profit & Loss account Jun '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 274.79 126.94 3,259.09 373.35 0.00 1,353.42 0.00 5,387.59 Jun '11 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend 1,516.37 1,672.83 101.39 1,571.44 291.37 0.00 1,280.07 0.00 1,280.07 91.60 1,198.28 5,112.80 0.00 6,794.48 0.00 6,794.48 156.46 109.48 7,060.42
------------------- in Rs. Cr. ------------------Jun '10 12 mths Jun '09 12 mths Jun '08 12 mths Jun '07 12 mths
5,078.76 0.00 5,078.76 114.56 -82.52 5,110.80 2.95 86.93 2,137.82 434.77 724.41 195.71 0.00 3,582.59 Jun '10 12 mths 1,413.65 1,528.21 101.36 1,426.85 274.03 0.00 1,152.82 3.43 1,156.25 100.01 1,056.58 3,579.64 0.00
4,675.09 0.00 4,675.09 91.49 0.00 4,766.58 0.00 100.28 1,874.10 492.39 637.66 180.99 0.00 3,285.42 Jun '09 12 mths 1,389.67 1,481.16 35.35 1,445.81 251.89 0.00 1,193.92 0.00 1,193.92 196.61 997.31 3,285.42 0.00
4,615.39 0.00 4,615.39 -108.91 0.00 4,506.48 0.00 0.00 1,621.35 746.92 639.05 381.11 0.00 3,388.43 Jun '08 12 mths 1,226.96 1,118.05 24.93 1,093.12 217.87 0.00 875.25 0.00 875.25 94.60 780.65 3,388.43 0.00
3,768.62 0.00 3,768.62 439.42 0.00 4,208.04 0.00 0.00 1,322.59 577.24 617.20 314.51 0.00 2,831.54 Jun '07 12 mths 937.08 1,376.50 20.60 1,355.90 178.21 0.00 1,177.69 0.00 1,177.69 75.87 1,101.82 2,831.54 0.00
Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
514.49 84.39 6,886.89 17.40 375.00 85.06
270.20 45.40 6,787.84 15.57 200.00 72.69
469.61 79.73 6,702.57 14.88 350.00 52.04
598.58 101.72 6,663.40 11.72 450.00 48.22
525.59 81.60 6,636.83 16.60 400.00 51.61
Cash Flow Jun '11 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 1289.88 1519.39 -535.03 -882.56 102.86 64.84 167.70
------------------- in Rs. Cr. ------------------Jun '10 12 mths 1152.82 739.26 -1399.11 583.38 -79.16 144.00 64.84 Jun '09 12 mths 1193.92 587.94 306.83 -215.82 678.95 686.88 1365.83 Jun '08 12 mths 875.25 1056.84 -148.53 -602.26 305.94 380.94 686.88 Jun '07 12 mths 1177.69 997.93 -341.46 -381.57 274.90 106.22 380.94
LISTING & STOCK EXCHANGE The Stock Exchange, Mumbai, National Stock Exchange of India Ltd. Key Dates Year Ending Month Jun AGM Date (Month) Oct Book Closure Date (Month) Listing Information Face Value Of Equity Shares Market Lot Of Equity Shares BSE Code 532281 NSE Code HCLTECH BSE Group A 2 1
Oct
Whether The Company Forms A Part Of The Following Indices -
Sensex No Nifty Yes BSE-100 Yes BSE-200 Yes S&P CNX 500 Listing On Listed On Ltd.
Yes
The Stock Exchange, Mumbai, National Stock Exchange of India
Current share price (as on 28 Aug) % increase: 306.20 Day’s increase: -5.75 Current value: -1.84% Volume 382,246 Prev Close 311.95 Day's H/L (Rs) 314.90 - 304.00 52wk H/L (Rs) 315.40 - 89.10 Mkt Cap (Rs Cr) 20,392.92
BONUS HISTORY (HCL TECHNOLOGIES) Announcement Date 14-12-2006 Bonus Ratio 1:1 Record Date 16-03-2007 Ex-Bonus Date 15-03-2007
AWARDS India's Most Preferred Personal Computer Brand by CNBC AWAAZ Consumer Award 2007
India's 'No. 1 PC Vendor' consecutively for six years. HCL among the Top 3 IT companies for the last 3 years, DQ & IDC,Best Employer Survey, 'Best employer 2005' with Five Star Ratings Top 50 Fastest Growing Technology Companies in India & 'Top 500 Fastest Growing Technology Companies in Asia Pacific' by 'Deloitte & Touche' Vineet Nayar appointed to the Board of Directors at HCL Technologies Noida, Aug 1, 2008 : HCL Technologies, India’s leading Global Technology and IT Services company, announced that Vineet Nayar, CEO, HCL Technologies, has been appointed to the Board of HCL Technologies as a Wholetime Director with effect from August 1, 2008. Shiv Nadar, Founder - HCL and Chairman & Chief Strategy Officer, HCL Technologies said - “Vineet’s appointment to the Board reflects HCL’s commitment to nurturing talent, positioning it in key areas of leadership and building lasting institutions of excellence. Vineet joined HCL - his first and only job, as Senior Management Trainee in 1985. He created HCL Comnet, and positioned HCL as a pioneer and industry leader globally in the Remote Infrastructure Management space. He has led HCL’s transformation strategy, now a Harvard Business School case study. Vineet will now continue to bring his leadership skills to bear on HCL’s future but in a larger context - in developing its vision, governance and strategy beyond the confines of HCL’s business. “ Vineet Nayar, now CEO and Wholetime Director, HCL Technologies, said, “I am honoured by the Board’s decision, and look forward to being part of the future growth of HCL in all its larger dimensions as a global and responsible corporate
citizen. In my 23 year association with HCL, this is another opportunity for me to share and shape the larger transformation journey with Shiv Nadar, the board, and my team members across the HCL Enterprise.”
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