Description
Itexplains about SWOT analysis of HCL Infosystems, Company Description, General Information about the HCL Infosystems, it's Finance performance, competitor analysis of HCL Infosystems.
Company analysis: HCL Infosystems Ltd
Date of Establishment Revenue Market Cap Corporate Address 1976 Rs 2612 crores (Q3FY12) 9227.2166406 ( Rs. in Millions ) HCL Infosystems Ltd, E-4,5 & 6, Sector 11, NOIDA 201 301, UP India www.hclinfosystems.in Chief Executive Officer(CEO) - Harsh Chitale President & Chief Operating Officer(COO)J.V.Ramamurthy Chief Financial Officer(CFO) – Sandeep Kanwar Head; Marketing, Corporate Strategy & Business Development: Rothin Bhattacharya Chief Human Resources Officer: Vivek Punekar
Management Details
Background
HCL Infosystems (HCLI) is one of the leading ICT system integrator and distribution company. It originated in 1976, It developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC – in 1978. This microcomputer virtually gave birth to the Indian computer industry. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-pro Total Income - Rs. 110241.4 Million ( year ending Jun 2011) Net Profit - Rs. 1772.3 Million ( year ending Jun 2011) Sushil Kumar Jain
Financials
Company Secretary
HISTORY HCL Infosystems (HCLI) is one of the leading ICT system integrator and distribution company. It originated in 1976, It 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. 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. HCLI has wide range of products and services such as IT products, solutions and related services, which include PCs, servers, imaging, voice and video solutions, networking products, TV and FM broadcasting solutions, communication solutions, system integration, ICT education and training, digital lifestyle solutions and peripherals. The company has strategic alliance with leading companies like Intel, AMD, Microsoft, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, NVIDIA, SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo, Samsung and Novell. It has four hardware manufacturing facilities -- two in Pondicherry, one in Chennai and one in Uttaranchal.
Products 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 addresses, HCL Infosystems’ products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers. Computing products Consumer home\office & Home office ? ? Home PCs Home notebooks
Enterprise businesses ? ? ? ? ? ? Business netbooks/notebooks Business PCs Business PCs supporting linux Business workstations Servers Thin client
HCL peripherals Keyboards, display products, Technology products, Networking products & Racks and Kiosks, CORTONA3D products. Software licences and middlework frameworks Today, software licenses constitute a major part of an organisation's IT investment. Optimum licensing and management of software assets play an important role in ensuring maximum returns of your investment. HCL today offers a comprehensive range of software licenses as part of its single window offering to its customers. Further, HCL's centre of excellence in various middleware frameworks can help you design, implement, roll out, operate and maintain as well as deliver end-to-end implementations for its clients across regions and segments. Storage solutions The company manufactures wide range of storage solutions such as standalone drivers, HBA
cards, EMC storage solutions etc catering wide range of consumers.
Office Imaging and telecom solutions It has partnered with the best in the industry like Toshiba, Infocus, Duplo, etc to provide imaging solutions like projectors, plasma, visual presenter and interactive presentation systems. It has partnered with major players for providing voice, videoconferencing, audio conferencing and broadcast solutions according to the business needs. HCL Infosystems has implemented many state-of-the-art projects on Document Management & Homeland Security Solutions for the Central Government, varied State Governments and Police Forces. The company develops POS, kiosk and customer service counter products. HCLI offers a complete range of digital lifestyle products and solutions through its various distribution channels and vast warehousing and logistics operations. Software solutions ? ? Bi-Lingual Banking BancMate - India's first & only bi-lingual banking software. Tefilla Tefilla MAGNet Core is the Enterprise Management System (EMS) from HCL, under its management software portfolio called Tefilla. Tefilla MAGNet Core is an integrated single-stop Operational Support Tool for Fault, Performance and Configuration management
Services System integration HCL Infosystems Limited is India’s premier IT System Integration company, with a strong legacy and over thirty years of experience in this domain, HCL offers System Integration services as a single-window turnkey solution, that integrate best-in-class products and solutions to meet the business needs of enterprise IT Infrastructure Consultancy HCL’s IT Infrastructure Consulting Group truly believes that linkage to a range of IT processes will improve overall IT service delivery:
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IT Procurement Contract management Architecture and Strategy governance Project Management Office Application and Hardware Support IT Audit & Synchronisation of IT audit data Team induction IT Budget development
IT Audit - Security, Compliance & Risk Management HCL’s deliverables include: ? Operational computer system/network audits: Review the information security and other controls within and surrounding operational computer systems and networks. ? IT installation audits: Review the computer building, suite, room, or cupboard, including aspects such as physical security, environmental controls, computer and network operations processes, and management systems and of course the IT equipment itself. ? Developing systems audits: Project/program management controls and implementation of appropriate information security controls within and supporting the developed system. ? IT governance, management and strategic audits: Review the organization, structure, strategy, work planning, resource planning, budgeting, cost controls, and so on and, where applicable, relationships with outsourced IT providers.
IT process audits: Review processes within IT such as applications deployment, operations, maintenance, housekeeping (backups, preventive maintenance, etc.), support & incident handling, controls protecting the confidentiality, integrity, and availability of systems and data. ? IT compliance audits: Review compliance with external requirements (i.e. ITrelated laws and regulations such as software copyright, and personal data/privacy) and internal/corporate requirements (IT/information security policies, standards, procedures, and guidelines). ? Benchmarking: Comparing the IT performance, efficiency, and/or capabilities of an organization to other similar organizations, or comparing business units within a large organization, or measuring against generally accepted standards. ? Contingency planning: Review business continuity and IT disaster recovery plans and the associated processes (e.g., tests and exercises). ? Special investigations: Contingency and un-pre-planned work such as investigating suspected frauds or information security breaches, performing due diligence review of IT assets for mergers and acquisitions, and investigating incident reports from whistle-blowers. ? Other: HCL’s IT auditors often work alongside financial, operational, and other non-IT auditors, supplementing the team with expertise on the IT systems aspects contributing to risk assessment workshops and may offer IT consultancy advice or mentoring to risk, security and compliance professionals. Managed services HCL’s Managed Services helps you outsource the maintenance, upgrades, ongoing user training and end-user support of your business system and underlying infrastructure. Leading companies have selected HCL’s Managed Services to leave the job of running their systems to the supply chain experts while they focus on other business-critical activities. Strategic outsourcing services Technology consulting services ? Technology best practices ? Technology & service governance Infrastructure consulting services ? Network consultinf ? Security consulting ? Storage & data consulting Outsourcing services ? Application outsourcing ? Business process outsourcing ? Infrastructure outsourcing Infrastructure services Staying competitive in today's dynamic business environment means finding new ways
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to reduce costs while maximizing the value of technology and personal resources. More than ever, the ability to "do more with less" determines how successful an organization will be. That's what HCL helps its clients achieve. By channeling their in-depth expertise, gained from over 29 years of ICT Domain experience, they provide a full bandwidth of services, specifically designed to meet your complete ICT Infrastructure needs. Networking Infrastructure HCL’s Network infrastructure group today offers: Structured Cabling solutions ? Converged Local Area networking solutions ? Converged Wide Area networking solutions The focus is on 'Solutions Integration' rather than 'Systems Integration'. HCL has designed and built some of India's largest mission critical networks. Facilities Management Through their Total Facilities Management Solution, HCL offer a range of service options, customized to the specific requirements of clients. These include: - 365x24x7 Support for mission critical sites - Value added Support Services - System Administration - Helpdesk Services - Network Consulting - Network Implementation and Management - Asset Management etc. All this helps customer in deriving maximum value from the investment in IT hardware and software.
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FINANCIAL PERFORMANCE OF THE COMPANY QUARTERLY HIGHLIGHTS (Q3FY12) Consolidated ? ? ? Revenue at Rs. 2,612 crores. Profit before tax at Rs. 30 crores. Basic EPS at Rs. 1.0 per share of Rs. 2/- each.
Computer Systems ? ? Revenue at Rs. 878 crores, a sequential growth of 23%. PBIT at Rs. 7 crores.
Telecommunication & Office Automation ? ? Revenue at Rs. 1,733 crores. PBIT at Rs. 47 crores, a sequential growth of 14%.
Quarterly Results (Unaudited) Figures in Rs. Crores Q1 FY12 Consolidated 2,810 Revenue Consolidated 19 PBT Consolidated 12 PAT Q2 FY12 2,693 34 35 Q3 FY12 2,612 30 23 FY11 2,758 70 53 Y-o-Y % -5% -57% -57% Q-o-Q % -3% -13% -34%
The company reported consolidated revenue of Rs. 2,612 crores for the quarter ended March 31, 2012. Profit before tax was reported at Rs. 30 crores for the quarter ended March 31, 2012. Earnings per share:
Basic EPS for the quarter ended March 31, 2012 was Rs. 1.0 per share of Rs. 2/- each.
SEGMENT RESULTS COMPUTER SYSTEMS & OTHER RELATED PRODUCTS Computer Systems & Other Related Products and Services Figures in Rs. crores Unaudited Revenue Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Y-o-Y % Q-o-Q % Computing Business 576 539 634 691 -8% 18% Systems Integration 107 110 152 129 18% 38% Learning 13 14 20 29 -30% 50% Overseas Operations 95 142 74 94% 50% Intersegment / Adjustments -55 -45 -70 -24 Computer Systems & Other Related Products and Services 722 712 878 898 -2% 23% Computer Systems & Other Related Products and Services Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Y-o-Y % Q-o-Q % PBIT including foreign exchange fluctuation -1 -6 7 45 -85% 213% PBIT excluding foreign exchange fluctuation 15 1 5 43 -88% 821% TELECOMMUNICATION & OFFICE AUTOMATION Telecommunication & Office Automation Figures in Rs. crores Unaudited Revenue Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Telecom Distribution 1,792 1,662 1,449 1,433 Digital Entertainment 129 146 106 153 Office Automation 106 132 146 177 Overseas Operations 42 45 14 61 Intersegment / Adjustments 5 -4 18 33 Telecommunication & Office Automation (Net) 2,073 1,980 1,733 1,856 Telecommunication & Office
Y-o-Y % Q-o-Q % 1% -13% -30% -27% -17% 11% -69%
-7%
-12%
Automation Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Y-o-Y % Q-o-Q % PBIT including foreign exchange fluctuation 45 41 47 45 4% 14% PBIT excluding foreign exchange fluctuation 52 46 46 45 2% -1% Enterprise Business Computer Systems segment registered strong growth across different verticals. The government segment, a part of the enterprise business recorded an impressive performance on the back of some major wins – ? HCL Infosystems was awarded the LOI for Managed Service Provider (MSP) from
UIDAI (Unique Identification Authority of India) ? ? ? ? The company won a Rs. 250 crores plus order from Electronics Corporation of Tamil Nadu Ltd. (ELCOT) under a project to provide 2 lakh units of Laptops to government and state aided schools and colleges across the state of Tamil Nadu. Apart from the government segment, the non government verticals of the company also registered growth in IT-ITES, Utilities, BFSI, etc: In the BFSI segment the company bagged multiple orders from institutions such as RBI, Syndicate Bank, Central Bank of India, Axis Bank, Bank of India, South Indian
Bank and Exim Bank ? ? ? ? The company won Financial Inclusion projects from UCO Bank and Central Bank of India. The business also won a Services Surveillance order from the Shriram Group The company bagged significant IT services orders from Reliance Industries and Indian Oil Corporation In the utility segment the company won a ERP hardware project from Himachal Pradesh State Electricity Board Limited (HPSEBL) The cloud computing business also registered robust growth of 150% QoQ. New Customers gained by the business included Piaggio Vehicles Pvt Ltd, Health and Family Welfare Department, Government of Tamil Nadu, Thiess India, Shell Lubricants, South Indian Bank, Narayana Hrudayalaya and IIM Bangalore among others. The business also launched new services and established new partnerships with leading industry players like Google and Microsoft.
BUSINESS HIGHLIGHTS Mobility Business ? The Mobility Business bagged new enterprise customers including Sunpharma, Intas, Qmax, Glenmark, Education Initiative, Edelweiss, Cleartrip, Royal Images, American Power Conversion, SIO Health Care among others. The Mobility business also recently did a successful launch of a new addition to the tablet range – ME TAB U1 based on the latest Android 4.0.3 (Ice-cream Sandwich)
Learning Business ? The Learning Business has also been registering good growth and we booked over 3300 classrooms for the digi-school solutions in this quarter, this represents growth in terms of classrooms of 300% QoQ. Some of the educational institutes across the country where HCL Learning have partnered this quarter are State Bank of India Officers' Association Education Trust, (Chennai & Coimbatore), Delhi Public School, Bokaro and St. Paul’s School, Darjeeling.
Overseas Business ? HCL Infosystems MEA, the company’s subsidiary based out of Dubai added new customers like Department of Finance, Abu Dhabi, Sharjah Municipality, Danzas, DEWA (Dubai Electricity & Water Authority), DP World, Sharjah Civil Aviation, DHA (Dubai Health Authority), Union National Bank, Abu Dhabi, Mashraf Al Rayan, Qatar, CGC, Qatar, Niti Computers, Africa among others. Our subsidiary in Singapore has signed up a 5 year managed services engagement for providing infrastructure managed service to multiple IDA agencies in Singapore. HCL Infosystems also started its operations in Qatar which will address the System Integration, Services & IT support needs of companies across verticals in this region. As part of the new operations, HCL Infosystems has set up a partnership with Dyarco International WLL, a leading business consultancy in Qatar and a subsidiary of the Al Faisal Holding. 45
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BUSINESS HIGHLIGHTS AWARDS and ACCOLADES Distribution Business ? The distribution business added many new partners such as Maxell, Asder, Lexibook, DeLonghi and Eureka Forbes-Eurodiya and has expanded its footprint in the rural and tier 3 and 4 towns in India.
Office Automation Business ? The company’s OA Business won various orders from Gujarat Informatics Ltd., Delhi University, Durg Police, Pearson, Broadcasting Media Equipment Ltd., Spice BPO, ANZ Technology Services Bangalore, L&T Mumbai and Aviva Life Insurance among others.
HCL Infosystems was ranked as No. 1 in IT Services Customer Survey by the prestigious DQ CMR CSA Award HCL Learning has won few awards: ? ? ? ? Bloomberg|UTV B-School Excellence awards to Institute Management Systems(IMS) for “Best Cloud Based Education Institute Management System” Star News National Education Awards to Digischool for “Best ICT Enabled Content for K12 Education” Star News National education Awards to Digicampus for “Best Technology BASED Solutions for Higher Education Institutes” The prestigious Jury Award at the 7th eINDIA awards for the Best Open and Distance Learning Practices in Higher education for Xcelerate (Xcelerate is a joint initiative between HCL & Resonance) program
Competitors Company Sales Current Change (Rs.Million) Price (%) 9553.37 1002.95 0.68 98404.05 72.55 -0.89 41.40 52.75 147.65 8.49 27.90 26.15 20.65 64.00 7.75 2.94 7.00 16.50 59.95 3.23 14.30 12.10 8.87 5.35 8.80 -1.66 -4.95 1.86 -2.75 -2.45 0.00 3.25 0.00 -1.15 2.08 0.00 -3.23 1.96 8.39 -4.67 -0.49 0.68 3.88 0.00 P/E Market 52-Week Ratio Cap.(Rs.Million) High/Low 18.90 30389.39 1190/685 18.46 28950.36 102/65 17.25 0.00 916.52 0.00 59.84 0.00 21.45 4.17 62.77 46.34 0.00 20.83 6.90 11.47 6.98 11.14 0.00 0.00 33.61 9227.22 2097.77 1631.40 1428.92 1180.62 441.94 432.63 425.92 357.41 349.87 344.04 291.60 268.76 253.09 190.51 187.32 165.73 127.33 97.13 89/39 64/24 152/25 40/8 46/22 26/26 24/14 133/51 14/7 7/1 11/5 26/15 75/47 5/2 23/13 19/11 16/7 11/4 20/8
CMC Redington HCL 109369.50 Infosystems Ricoh India 2961.52 ACI Infocom 137.02 Moser Baer India 17325.17 Cerebra Integ. 707.72 Tech IO System NA PCS Technology 1861.43 Compuage 13739.08 Infocom SPEL 797.86 Semiconductor Allied Computer 110.35 Intl Network 6.09 TVS Electronics 1814.04 Avantel Ltd 260.14 Vintron 55.37 Informatics VXL Instruments 935.75 Zenith 1923.22 Computers Mro-Tek 341.37 Euro Multivision 913.72 Accel 192.25 Transmatic
Intellvisions Soft Total Hospitality Enso Secutrack Abee Info Cons. International Data Kilburn Office Auto Computerskill Crazy Infotech Sparc Systems Vidarbha Iron
113.44 NA 202.73 10.19 NA 548.72 77.89 25.71 1.00 29.98
13.50 16.20 6.37 4.28 16.25 5.25 2.90 0.22 2.60 1.00
3.69 0.00 0.00 0.00 0.00 -1.50 0.00 -4.35 -4.41 0.00
8.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.15
94.50 89.37 71.10 42.80 35.75 35.44 28.21 14.71 12.71 1.00
23/9 24/16 6/6 4/4 16/16 12/5 3/3 0/0 5/2 1/1
SWOT ANALYSIS STRENGTHS: ? ? ? ? HCL INFOSYSTEMS draws it's strength from 30 years of experience in handling the ever changing IT scenario. HCL has very strong customer relationships to bank on. HCL Infosystems has the ability to provide cutting edge technology at best-valuefor-money. HCL Infosystems do have an excellent service & support infrastructure.
WEAKNESS: ? ? ? The company needs to evolve a comprehensive plan & make strategy to inroads into a part of middle class & upper middle class. Lack of production centers in India makes the product costlier as most of the parts have to be imported. Lack of R & D centers also makes it difficult to launch new products over here
OPPORTUNITIES: ? ? ? The present rate of growth of the Information and technology Industry & a large potential available in these areas provides excellent opportunity for the company to widen its market. With the fast growing economy, the pricing strategy needs to be tackled with careas it can decide upon long term decisions of the company. Globalization is yet another opportunity, if followed effectively & promptly.
THREATS:
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It is natural that threats from the existing as well as new entrants will affect the present turnover & Market share. The nearest competitors having identical product range pose the greatest threat to the company
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Itexplains about SWOT analysis of HCL Infosystems, Company Description, General Information about the HCL Infosystems, it's Finance performance, competitor analysis of HCL Infosystems.
Company analysis: HCL Infosystems Ltd
Date of Establishment Revenue Market Cap Corporate Address 1976 Rs 2612 crores (Q3FY12) 9227.2166406 ( Rs. in Millions ) HCL Infosystems Ltd, E-4,5 & 6, Sector 11, NOIDA 201 301, UP India www.hclinfosystems.in Chief Executive Officer(CEO) - Harsh Chitale President & Chief Operating Officer(COO)J.V.Ramamurthy Chief Financial Officer(CFO) – Sandeep Kanwar Head; Marketing, Corporate Strategy & Business Development: Rothin Bhattacharya Chief Human Resources Officer: Vivek Punekar
Management Details
Background
HCL Infosystems (HCLI) is one of the leading ICT system integrator and distribution company. It originated in 1976, It developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC – in 1978. This microcomputer virtually gave birth to the Indian computer industry. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-pro Total Income - Rs. 110241.4 Million ( year ending Jun 2011) Net Profit - Rs. 1772.3 Million ( year ending Jun 2011) Sushil Kumar Jain
Financials
Company Secretary
HISTORY HCL Infosystems (HCLI) is one of the leading ICT system integrator and distribution company. It originated in 1976, It 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. 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. HCLI has wide range of products and services such as IT products, solutions and related services, which include PCs, servers, imaging, voice and video solutions, networking products, TV and FM broadcasting solutions, communication solutions, system integration, ICT education and training, digital lifestyle solutions and peripherals. The company has strategic alliance with leading companies like Intel, AMD, Microsoft, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, NVIDIA, SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo, Samsung and Novell. It has four hardware manufacturing facilities -- two in Pondicherry, one in Chennai and one in Uttaranchal.
Products 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 addresses, HCL Infosystems’ products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers. Computing products Consumer home\office & Home office ? ? Home PCs Home notebooks
Enterprise businesses ? ? ? ? ? ? Business netbooks/notebooks Business PCs Business PCs supporting linux Business workstations Servers Thin client
HCL peripherals Keyboards, display products, Technology products, Networking products & Racks and Kiosks, CORTONA3D products. Software licences and middlework frameworks Today, software licenses constitute a major part of an organisation's IT investment. Optimum licensing and management of software assets play an important role in ensuring maximum returns of your investment. HCL today offers a comprehensive range of software licenses as part of its single window offering to its customers. Further, HCL's centre of excellence in various middleware frameworks can help you design, implement, roll out, operate and maintain as well as deliver end-to-end implementations for its clients across regions and segments. Storage solutions The company manufactures wide range of storage solutions such as standalone drivers, HBA
cards, EMC storage solutions etc catering wide range of consumers.
Office Imaging and telecom solutions It has partnered with the best in the industry like Toshiba, Infocus, Duplo, etc to provide imaging solutions like projectors, plasma, visual presenter and interactive presentation systems. It has partnered with major players for providing voice, videoconferencing, audio conferencing and broadcast solutions according to the business needs. HCL Infosystems has implemented many state-of-the-art projects on Document Management & Homeland Security Solutions for the Central Government, varied State Governments and Police Forces. The company develops POS, kiosk and customer service counter products. HCLI offers a complete range of digital lifestyle products and solutions through its various distribution channels and vast warehousing and logistics operations. Software solutions ? ? Bi-Lingual Banking BancMate - India's first & only bi-lingual banking software. Tefilla Tefilla MAGNet Core is the Enterprise Management System (EMS) from HCL, under its management software portfolio called Tefilla. Tefilla MAGNet Core is an integrated single-stop Operational Support Tool for Fault, Performance and Configuration management
Services System integration HCL Infosystems Limited is India’s premier IT System Integration company, with a strong legacy and over thirty years of experience in this domain, HCL offers System Integration services as a single-window turnkey solution, that integrate best-in-class products and solutions to meet the business needs of enterprise IT Infrastructure Consultancy HCL’s IT Infrastructure Consulting Group truly believes that linkage to a range of IT processes will improve overall IT service delivery:
? ? ? ? ? ? ? ?
IT Procurement Contract management Architecture and Strategy governance Project Management Office Application and Hardware Support IT Audit & Synchronisation of IT audit data Team induction IT Budget development
IT Audit - Security, Compliance & Risk Management HCL’s deliverables include: ? Operational computer system/network audits: Review the information security and other controls within and surrounding operational computer systems and networks. ? IT installation audits: Review the computer building, suite, room, or cupboard, including aspects such as physical security, environmental controls, computer and network operations processes, and management systems and of course the IT equipment itself. ? Developing systems audits: Project/program management controls and implementation of appropriate information security controls within and supporting the developed system. ? IT governance, management and strategic audits: Review the organization, structure, strategy, work planning, resource planning, budgeting, cost controls, and so on and, where applicable, relationships with outsourced IT providers.
IT process audits: Review processes within IT such as applications deployment, operations, maintenance, housekeeping (backups, preventive maintenance, etc.), support & incident handling, controls protecting the confidentiality, integrity, and availability of systems and data. ? IT compliance audits: Review compliance with external requirements (i.e. ITrelated laws and regulations such as software copyright, and personal data/privacy) and internal/corporate requirements (IT/information security policies, standards, procedures, and guidelines). ? Benchmarking: Comparing the IT performance, efficiency, and/or capabilities of an organization to other similar organizations, or comparing business units within a large organization, or measuring against generally accepted standards. ? Contingency planning: Review business continuity and IT disaster recovery plans and the associated processes (e.g., tests and exercises). ? Special investigations: Contingency and un-pre-planned work such as investigating suspected frauds or information security breaches, performing due diligence review of IT assets for mergers and acquisitions, and investigating incident reports from whistle-blowers. ? Other: HCL’s IT auditors often work alongside financial, operational, and other non-IT auditors, supplementing the team with expertise on the IT systems aspects contributing to risk assessment workshops and may offer IT consultancy advice or mentoring to risk, security and compliance professionals. Managed services HCL’s Managed Services helps you outsource the maintenance, upgrades, ongoing user training and end-user support of your business system and underlying infrastructure. Leading companies have selected HCL’s Managed Services to leave the job of running their systems to the supply chain experts while they focus on other business-critical activities. Strategic outsourcing services Technology consulting services ? Technology best practices ? Technology & service governance Infrastructure consulting services ? Network consultinf ? Security consulting ? Storage & data consulting Outsourcing services ? Application outsourcing ? Business process outsourcing ? Infrastructure outsourcing Infrastructure services Staying competitive in today's dynamic business environment means finding new ways
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to reduce costs while maximizing the value of technology and personal resources. More than ever, the ability to "do more with less" determines how successful an organization will be. That's what HCL helps its clients achieve. By channeling their in-depth expertise, gained from over 29 years of ICT Domain experience, they provide a full bandwidth of services, specifically designed to meet your complete ICT Infrastructure needs. Networking Infrastructure HCL’s Network infrastructure group today offers: Structured Cabling solutions ? Converged Local Area networking solutions ? Converged Wide Area networking solutions The focus is on 'Solutions Integration' rather than 'Systems Integration'. HCL has designed and built some of India's largest mission critical networks. Facilities Management Through their Total Facilities Management Solution, HCL offer a range of service options, customized to the specific requirements of clients. These include: - 365x24x7 Support for mission critical sites - Value added Support Services - System Administration - Helpdesk Services - Network Consulting - Network Implementation and Management - Asset Management etc. All this helps customer in deriving maximum value from the investment in IT hardware and software.
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FINANCIAL PERFORMANCE OF THE COMPANY QUARTERLY HIGHLIGHTS (Q3FY12) Consolidated ? ? ? Revenue at Rs. 2,612 crores. Profit before tax at Rs. 30 crores. Basic EPS at Rs. 1.0 per share of Rs. 2/- each.
Computer Systems ? ? Revenue at Rs. 878 crores, a sequential growth of 23%. PBIT at Rs. 7 crores.
Telecommunication & Office Automation ? ? Revenue at Rs. 1,733 crores. PBIT at Rs. 47 crores, a sequential growth of 14%.
Quarterly Results (Unaudited) Figures in Rs. Crores Q1 FY12 Consolidated 2,810 Revenue Consolidated 19 PBT Consolidated 12 PAT Q2 FY12 2,693 34 35 Q3 FY12 2,612 30 23 FY11 2,758 70 53 Y-o-Y % -5% -57% -57% Q-o-Q % -3% -13% -34%
The company reported consolidated revenue of Rs. 2,612 crores for the quarter ended March 31, 2012. Profit before tax was reported at Rs. 30 crores for the quarter ended March 31, 2012. Earnings per share:
Basic EPS for the quarter ended March 31, 2012 was Rs. 1.0 per share of Rs. 2/- each.
SEGMENT RESULTS COMPUTER SYSTEMS & OTHER RELATED PRODUCTS Computer Systems & Other Related Products and Services Figures in Rs. crores Unaudited Revenue Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Y-o-Y % Q-o-Q % Computing Business 576 539 634 691 -8% 18% Systems Integration 107 110 152 129 18% 38% Learning 13 14 20 29 -30% 50% Overseas Operations 95 142 74 94% 50% Intersegment / Adjustments -55 -45 -70 -24 Computer Systems & Other Related Products and Services 722 712 878 898 -2% 23% Computer Systems & Other Related Products and Services Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Y-o-Y % Q-o-Q % PBIT including foreign exchange fluctuation -1 -6 7 45 -85% 213% PBIT excluding foreign exchange fluctuation 15 1 5 43 -88% 821% TELECOMMUNICATION & OFFICE AUTOMATION Telecommunication & Office Automation Figures in Rs. crores Unaudited Revenue Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Telecom Distribution 1,792 1,662 1,449 1,433 Digital Entertainment 129 146 106 153 Office Automation 106 132 146 177 Overseas Operations 42 45 14 61 Intersegment / Adjustments 5 -4 18 33 Telecommunication & Office Automation (Net) 2,073 1,980 1,733 1,856 Telecommunication & Office
Y-o-Y % Q-o-Q % 1% -13% -30% -27% -17% 11% -69%
-7%
-12%
Automation Q1 FY12 Q2 FY12 Q3 FY12 Q3 FY11 Y-o-Y % Q-o-Q % PBIT including foreign exchange fluctuation 45 41 47 45 4% 14% PBIT excluding foreign exchange fluctuation 52 46 46 45 2% -1% Enterprise Business Computer Systems segment registered strong growth across different verticals. The government segment, a part of the enterprise business recorded an impressive performance on the back of some major wins – ? HCL Infosystems was awarded the LOI for Managed Service Provider (MSP) from
UIDAI (Unique Identification Authority of India) ? ? ? ? The company won a Rs. 250 crores plus order from Electronics Corporation of Tamil Nadu Ltd. (ELCOT) under a project to provide 2 lakh units of Laptops to government and state aided schools and colleges across the state of Tamil Nadu. Apart from the government segment, the non government verticals of the company also registered growth in IT-ITES, Utilities, BFSI, etc: In the BFSI segment the company bagged multiple orders from institutions such as RBI, Syndicate Bank, Central Bank of India, Axis Bank, Bank of India, South Indian
Bank and Exim Bank ? ? ? ? The company won Financial Inclusion projects from UCO Bank and Central Bank of India. The business also won a Services Surveillance order from the Shriram Group The company bagged significant IT services orders from Reliance Industries and Indian Oil Corporation In the utility segment the company won a ERP hardware project from Himachal Pradesh State Electricity Board Limited (HPSEBL) The cloud computing business also registered robust growth of 150% QoQ. New Customers gained by the business included Piaggio Vehicles Pvt Ltd, Health and Family Welfare Department, Government of Tamil Nadu, Thiess India, Shell Lubricants, South Indian Bank, Narayana Hrudayalaya and IIM Bangalore among others. The business also launched new services and established new partnerships with leading industry players like Google and Microsoft.
BUSINESS HIGHLIGHTS Mobility Business ? The Mobility Business bagged new enterprise customers including Sunpharma, Intas, Qmax, Glenmark, Education Initiative, Edelweiss, Cleartrip, Royal Images, American Power Conversion, SIO Health Care among others. The Mobility business also recently did a successful launch of a new addition to the tablet range – ME TAB U1 based on the latest Android 4.0.3 (Ice-cream Sandwich)
Learning Business ? The Learning Business has also been registering good growth and we booked over 3300 classrooms for the digi-school solutions in this quarter, this represents growth in terms of classrooms of 300% QoQ. Some of the educational institutes across the country where HCL Learning have partnered this quarter are State Bank of India Officers' Association Education Trust, (Chennai & Coimbatore), Delhi Public School, Bokaro and St. Paul’s School, Darjeeling.
Overseas Business ? HCL Infosystems MEA, the company’s subsidiary based out of Dubai added new customers like Department of Finance, Abu Dhabi, Sharjah Municipality, Danzas, DEWA (Dubai Electricity & Water Authority), DP World, Sharjah Civil Aviation, DHA (Dubai Health Authority), Union National Bank, Abu Dhabi, Mashraf Al Rayan, Qatar, CGC, Qatar, Niti Computers, Africa among others. Our subsidiary in Singapore has signed up a 5 year managed services engagement for providing infrastructure managed service to multiple IDA agencies in Singapore. HCL Infosystems also started its operations in Qatar which will address the System Integration, Services & IT support needs of companies across verticals in this region. As part of the new operations, HCL Infosystems has set up a partnership with Dyarco International WLL, a leading business consultancy in Qatar and a subsidiary of the Al Faisal Holding. 45
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BUSINESS HIGHLIGHTS AWARDS and ACCOLADES Distribution Business ? The distribution business added many new partners such as Maxell, Asder, Lexibook, DeLonghi and Eureka Forbes-Eurodiya and has expanded its footprint in the rural and tier 3 and 4 towns in India.
Office Automation Business ? The company’s OA Business won various orders from Gujarat Informatics Ltd., Delhi University, Durg Police, Pearson, Broadcasting Media Equipment Ltd., Spice BPO, ANZ Technology Services Bangalore, L&T Mumbai and Aviva Life Insurance among others.
HCL Infosystems was ranked as No. 1 in IT Services Customer Survey by the prestigious DQ CMR CSA Award HCL Learning has won few awards: ? ? ? ? Bloomberg|UTV B-School Excellence awards to Institute Management Systems(IMS) for “Best Cloud Based Education Institute Management System” Star News National Education Awards to Digischool for “Best ICT Enabled Content for K12 Education” Star News National education Awards to Digicampus for “Best Technology BASED Solutions for Higher Education Institutes” The prestigious Jury Award at the 7th eINDIA awards for the Best Open and Distance Learning Practices in Higher education for Xcelerate (Xcelerate is a joint initiative between HCL & Resonance) program
Competitors Company Sales Current Change (Rs.Million) Price (%) 9553.37 1002.95 0.68 98404.05 72.55 -0.89 41.40 52.75 147.65 8.49 27.90 26.15 20.65 64.00 7.75 2.94 7.00 16.50 59.95 3.23 14.30 12.10 8.87 5.35 8.80 -1.66 -4.95 1.86 -2.75 -2.45 0.00 3.25 0.00 -1.15 2.08 0.00 -3.23 1.96 8.39 -4.67 -0.49 0.68 3.88 0.00 P/E Market 52-Week Ratio Cap.(Rs.Million) High/Low 18.90 30389.39 1190/685 18.46 28950.36 102/65 17.25 0.00 916.52 0.00 59.84 0.00 21.45 4.17 62.77 46.34 0.00 20.83 6.90 11.47 6.98 11.14 0.00 0.00 33.61 9227.22 2097.77 1631.40 1428.92 1180.62 441.94 432.63 425.92 357.41 349.87 344.04 291.60 268.76 253.09 190.51 187.32 165.73 127.33 97.13 89/39 64/24 152/25 40/8 46/22 26/26 24/14 133/51 14/7 7/1 11/5 26/15 75/47 5/2 23/13 19/11 16/7 11/4 20/8
CMC Redington HCL 109369.50 Infosystems Ricoh India 2961.52 ACI Infocom 137.02 Moser Baer India 17325.17 Cerebra Integ. 707.72 Tech IO System NA PCS Technology 1861.43 Compuage 13739.08 Infocom SPEL 797.86 Semiconductor Allied Computer 110.35 Intl Network 6.09 TVS Electronics 1814.04 Avantel Ltd 260.14 Vintron 55.37 Informatics VXL Instruments 935.75 Zenith 1923.22 Computers Mro-Tek 341.37 Euro Multivision 913.72 Accel 192.25 Transmatic
Intellvisions Soft Total Hospitality Enso Secutrack Abee Info Cons. International Data Kilburn Office Auto Computerskill Crazy Infotech Sparc Systems Vidarbha Iron
113.44 NA 202.73 10.19 NA 548.72 77.89 25.71 1.00 29.98
13.50 16.20 6.37 4.28 16.25 5.25 2.90 0.22 2.60 1.00
3.69 0.00 0.00 0.00 0.00 -1.50 0.00 -4.35 -4.41 0.00
8.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.15
94.50 89.37 71.10 42.80 35.75 35.44 28.21 14.71 12.71 1.00
23/9 24/16 6/6 4/4 16/16 12/5 3/3 0/0 5/2 1/1
SWOT ANALYSIS STRENGTHS: ? ? ? ? HCL INFOSYSTEMS draws it's strength from 30 years of experience in handling the ever changing IT scenario. HCL has very strong customer relationships to bank on. HCL Infosystems has the ability to provide cutting edge technology at best-valuefor-money. HCL Infosystems do have an excellent service & support infrastructure.
WEAKNESS: ? ? ? The company needs to evolve a comprehensive plan & make strategy to inroads into a part of middle class & upper middle class. Lack of production centers in India makes the product costlier as most of the parts have to be imported. Lack of R & D centers also makes it difficult to launch new products over here
OPPORTUNITIES: ? ? ? The present rate of growth of the Information and technology Industry & a large potential available in these areas provides excellent opportunity for the company to widen its market. With the fast growing economy, the pricing strategy needs to be tackled with careas it can decide upon long term decisions of the company. Globalization is yet another opportunity, if followed effectively & promptly.
THREATS:
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It is natural that threats from the existing as well as new entrants will affect the present turnover & Market share. The nearest competitors having identical product range pose the greatest threat to the company
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