HCL Infosystems Q4 net up 21%

HCL Infosystems reports quarterly consolidated revenue of Rs. 3108.3 crores, taking the consolidated revenue for the year to Rs. 11855.4 crores. Profit After Tax reported for the quarter at Rs. 84.9 crores, taking the PAT for the year to Rs. 316.0 crores.

Board of Directors has recommended a final dividend of 100% per fully paid up share. HCL declares 400% Dividend during the year 2006-07.

System Integration business fuels strong show by HCLI

New Delhi, August 23, 2007: HCL Infosystems Ltd, India's ICT company today announced its audited results for the year ended June 30, 2007.

The company has reported quarterly consolidated revenues of Rs. 3108.3 crores, taking consolidated revenues to Rs. 11855.4 crores for the year ended June 30, 2007.

Consolidated profit before tax for the quarter was Rs. 123.6 crores, taking the consolidated profit before tax for the year to Rs. 428.7 crores, a growth of 11 %.

Consolidated profit after tax for the quarter was Rs. 84.9 crores, up 21% Y-o-Y, taking the consolidated profit after tax for the year to Rs. 316.0 crores, a growth of 13 %.

Computer Systems business revenues for the quarter was Rs. 843.8 crores, up 29% Y-o-Y and 16% sequentially, taking the revenues for the year to Rs. 2784.6 crores, a growth of 17 %.

PBIT of Computer Systems business for the quarter was up 67 % Y-o-Y to Rs. 56.3 crores & the PBIT for the year was up 39 % Y-o-Y to Rs. 174.3 crores.

Telecommunication & Office Automation business revenue for the quarter was Rs. 2259.5 crores, taking the revenues for the year to Rs. 9049.5 crores.

PBIT of Telecommunication & Office Automation business for the quarter was up 18 % Y-o-Y to Rs. 74.2 crores & the PBIT for the year was up 9 % Y-o-Y to Rs. 267.1 crores.

Consolidated EPS for the year ended 30th June 2007 was Rs. 18.7 per share as against Rs. 16.7 per share, a growth of 12 %.

The Board of Directors has recommended a final dividend of 100% per fully paid up share. HCL announces a total dividend of 400% for the year 2006-07.

Consequent to the scheme of arrangement becoming effective, the accounts of the company on Standalone basis for the quarter and year ended June 30, 2007 include the results of Telecommunication and Office Automation business and hence are not comparable with the previous period.

Announcing the results, Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems, said, "HCL leveraged its strengths in ICT technology leadership & System Integration capability to deliver another year of noteworthy growth. Our focus on system Integration business has resulted in large contracts for the company and our continued thrust on technological innovations was rewarded by a sustained market leadership in multiple product segments. Further the enhancement of HCL's digital lifestyle portfolio, with several new strategic tie-ups, and the launch of our new venture in high-end education rounded off an exciting year. HCL is today the leading ICT provider to both enterprises and consumers in India and we are confident of growing this leadership in a future of accelerated growth.

HCL also announced being awarded a multi technology, multi- year System Integration contract worth over Rs 500 crores from BSNL, the country's leading telecom operator.

This major System Integration project for Convergent Billing & Customer Relationship Management for BSNL, involves the implementation of multiple technologies in computing & communication apart from setting up of two state of the art data centres at Kolkata and Hyderabad. Each of the data centres will function as a disaster recovery site for the other. This project will help BSNL roll out various values added services for its subscribers and provide it a technology lead in the market.

HCL's strong focus on system integration business yielded good dividends with the company winning a number of prestigious projects. HCL Infosystems has successfully designed, implemented, operated and managed a number of IT infrastructure solutions across industries like Telecom, E- Governance, BFSI & Power.

HCL further enhanced its Digital Lifestyle offerings by announcing a strategic tie-up for nationwide distribution of the world's leading digital camera brand Kodak. HCL, with its extensive reach across channels and organized retail (including the HCL DigiLife Stores) will be a major force multiplier for Kodak.

The company sustained its focused thrust on HCL Digilife stores, positioned as one-stop shop for a comprehensive range of digital lifestyle products and solutions, quickly ramping up the number of stores to 39 across the country.

In the mobile hand set business Nokia continued to do well this quarter too. The highlight of the quarter was extensive retail and trade promotions coupled with series of new model launches.

The year also marked HCL's foray in to high-end ICT education & training with the launch of HCL Career Development Centres across India. With an objective to meet the increasing demand for skilled professionals, HCL CDCs impart students' real world practical training on enterprise-wide ICT deployment and integration assignments to transform them into industry-ready professionals. In the last quarter, seven new centres of HCL CDC were opened taking the total to 27 centres. HCL CDCs offer specially designed courses in high-end infrastructure hardware, middleware and networking integration.

Leadership through product innovation:

HCL's consistent thrust on innovation and offering world-class technologies to Indian customers helped the company retain its market leadership in commercial desktops for the sixth year in a row, according to IDC figures for the financial year 2006-07. HCL emerged as India's largest desktop vendor according to IDC quarterly tracker, JFM 2007 figures.

HCL "Leaptops" were ranked amongst the top three selling laptop brands, in its first year of launch, witnessing an exciting growth of 176%. (Source IDC India Quarterly PC Tracker 1Q07). HCL Leaptops were rated the BEST by various publications, recognizing the efforts of HCL to provide the best to its customers. HCL Leaptops won Chip best value award (April 2007), PC Quest Editor's Choice Award (April 2007) and Computer Active Reader's Choice Award (June 2007).

HCL launched India's first RoHS compliant range of notebooks earlier this year & announced significant progress on its voluntary RoHS (Restriction of Hazardous Substances) implementation program.

In the Enterprise business space HCL showed good growth, winning new customers from leading corporates, education, defense, insurance majors, private & public sectors, banks etc.

Identifying SMEs as key growth segment, the company unveiled the one-of-its-kind 'HCL Datacentre in a Box' solution that delivers complete IT infrastructure solution in a compact package bundled with Enterprise Class Remote Support. Integrating a host of hardware products including servers, switches, storage and power management, the solution was received very well by the SME sector.

During the year, HCL launched the next-generation of Desktop computers in its 'Beanstalk 2007' collection, spearheading the transition of desktop PCs from workstations to epicenters of 'digital entertainment'. HCL also introduced India's first One Terabyte personal computer.

HCL increased its stronghold in the growing Indian retail industry by emerging as the number one vendor of 'Point of Sales '(PoS) solutions in India. HCL continued to be the 'nation's first' for simultaneous global launches of advanced computing technologies into the country. HCL became India's first hardware vendor to introduce products such as Intel Core 2 Duo-powered PCs, Intel vPro based PCs, Dual-core Itanium processor-based enterprise servers, Windows Vista-loaded desktops and notebooks.

The telecom business of HCL reported good traction. HCL launched new products like HCL Palamino, the next-generation IP-PBX solution, while it received prestigious orders for Audio-Video and broadcasting integration from large media and entertainment companies. The company bagged the order for the largest deployment of the 'Dial 100' solution comprising of tracking of more than 400 vehicles & manned by 100 call centre agents. The unique 'HCL Dial 100' police control room automation solution has received significant traction with several new orders from cities across India.

In the Networking & managed services business, HCL reported major contract wins from leading corporates, airlines, microfinance industries among many others.

HCL's Printing and Imaging business continued its leadership in the product segments it takes to the market.

On the manufacturing front: HCL commissioned its state-of-the-art integrated ICT manufacturing facility at Uttarakhand. This offers HCL a strategic advantage to capitalize on the growing opportunities in the Indian PC market, making it India's largest vertically integrated manufacturing facility.

Awards & Accolades

HCL bagged the 'IMM Top Organization Award 2007' for excellence HCL bagged the 'Amity Corporate Excellence Award 2007' for its distinct vision, innovation, competitiveness and sustenance HCL Amongst the 'Top 3 IT Hardware Companies' ranked in India's 100 Most Valuable Brands by Planman Consulting & ICMR Research HCL bagged the 'Channels Choice Award' 2007 for Relationship Management and After Sales Support by IDC DQ Channels based on the IDC channel satisfaction survey HCL wins 2007 PC World Best Buy Awards for HCL Ezeebee Core 2 Duo Vista HCL received 'Brand of Excellence Award' in the VARIndia IT Forum - 2007. HCL Amongst the 'Top 3 Most Preferred Brands' in CNBC Awaaz Survey, 2006 Recognized by Deloitte & Touche as winners in

i. Top 500 Fastest Growing Technology Companies in Asia Pacific" 2006

ii. Top 50 Fastest Growing Technology Companies in India" 2006

HCL bagged the Dun & Bradstreet Awards 2006 for 'Top Performance In The Computer Hardware & Peripherals Sector'. HCL Amongst the 'Top 5 Groups' as ranked in the DQ Top 20, 15th July, 2006 India's 'No. 1 Vendor' for sales of A3 size Toshiba Multi Functional Devices for the year 2005-06 by IDC Dataquest. HCL Infosystems ranked amongst Top 21 companies in Business Standard 1000 Ranking 2006. HCL ranked amongst 'Top 50 in ET Top 500 Companies' Listings for 2006. About HCL Infosystems

HCL Infosystems Ltd with annual revenue of US$ 2.7 Bn (Rs.11,855 crores) is India's premier information enabling and ICT System Integration company offering a wide spectrum of ICT products that includes Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a one - stop - shop for all the ICT requirements of an organization.

India's leading System Integration and Infrastructure Management Services Organization, HCL has specialized expertise across verticals including Telecom, BFSI, E-Governance & Power.

HCL has India's largest distribution and retail network, taking to market a range of Digital Lifestyle products in partnership with leading global ICT brands, including Nokia, Apple, Casio, Kodak, Toshiba, Bull, Ericsson, Cisco, Microsoft, Konica Minolta and many more.

HCL today has India's largest vertically integrated computer manufacturing facility with over three decades of electronic manufacturing experience HCL desktops is the largest selling brand into the enterprise space.

With India's largest ICT services network that reaches to every corner of India, HCL's award winning Support Services makes it the preferred choice of enterprise and consumers alike. For further information, please visit www.hclinfosystems.in

About HCL Enterprise HCL Enterprise is a leading global technology and IT enterprise with annual revenues of US $4.1 Bn (Rs. 17,889 crores). The HCL Enterprise comprises two companies listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is India's original IT garage start-up. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises over 47,000 professionals of diverse nationalities, who operate from 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information please visit www.hcl.in