HCL infosystems rounds off a good year

HCL Infosystems Ltd, or HCL Insys, India's premier technology integration company, today announced its audited financial results for the year ended 30 June 1999. The highlights:

• Turnover of the company during the year was Rs 950 crore, up 36 per cent from Rs 699.1 crore in the previous year.

• The PAT is reported at Rs 58.52 crore compared to Rs 26.13 crore reported the previous year.

The board of directors has recommended a 25 per cent dividend subject to the approval of members at the next annual general meeting. The company has modified its policy on revenue recognition to bring it in  line with international norms. This has resulted in a one-time adjustment of Rs 23.6 crore in the profit available for appropriation.

In addition, the company has also conservatively provided Rs 2.5 crore as income tax for the period April-June 1999, though the actual liability will depend on the tax position for the entire year 1999-2000. This is in line with the corporate governance practices prevalent worldwide.

The company has declared that it will increase its future focus on electronic commerce and will continue to dominate high-end enterprise system sales, integration and services segments.

Speaking on the healthy performance, the company's president and chief executive officer Ajai Chowdhry, said, "The company's performance in 1998-99 is built on strong fundamentals, wherein we have identified and oriented the business towards key growth areas. The chosen strategy focused on services underlies a long-term business outlook wherein HCL Insys will concentrate on areas that have clear, global growth paths and which will maximise our competencies as superior to competition. Electronic commerce has emerged as a key growth area, and we are well positioned to harvest the potential of this huge opportunity."

Financial results for year ended 30 June 1999
(Rs lakh)

	Year ended  30 Jun 1999	Year ended 30 Jun 1998
Net sales/income from operations	94,603.76	69,400.7
Other income	403.17	513.72
Total expenditure	86,445.78	65,633.4
Interest	956.58	854.21
Gross profit after interest but before depreciation and taxation	3,426.81	7,604.57
Depreciation	1,153.15	797.1
Profit before tax	6,451.42	2,629.71
Provision for taxation	599.02	17
Net profit after tax	5,852.4	2,612.71
One time adjustment of services	-2,360.85
Profit available for appropriation -	3,491.55	2,612.71
Paid-up equity share capital	3,190.58	3,190.36
Reserves excluding revaluation reserves	16,719.12	14,111.73