Declining Giant

HCL Infosystems

For HCL Infosystems, one of the pioneers in hardware services, ICT systems integration and distribution companies, the services-led growth contributed
a major share in its overall revenue.

The real story for HCLI however centered on services; its three-year journey to evolve as a solution provider from a hardware vendor was nearing culmination in FY10.The journey however has been anything, but easy. The domestic services at Rs 654 crore was flat (it was Rs 643 crore in FY09); besides the general slowdown it was also due to delayed payment realization from the distribution side. None of these however impacted government spending where HCLI's thrust was on building customized solutions, taking a productized approach. Deals involving e-municipalities, e-districts and other financial inclusion aspects followed this approach. HCLI saw growing traction for services in e-governance, power, telecom, BFSI and infrastructure (including transportation and railways); it managed the command and control centre for Delhi and Mumbai airports, developed the e-procurement solution for railways and deployed ticket dispensing machines for unreserved ticketing at 390 locations. The company had cumulative systems integration order book position of over
Rs 2,000 crore as on June 30th, 2010. It has recently deployed Airport Operation Control Centre (AOCC) in India for the New Terminal (T3) at Delhi International Airport. The IT system architecture of the AOCC has been seamlessly integrated in order to facilitate highest level of airside operations, resources planning and allocation, terminal operations and security.

On the distribution front, lower realizations from the telecom business also impacted the sales revenues, especially in the JFM quarter mainly because of problems with the Nokia distribution. Nokia sales were down as a result of competition at the low-end and the dual SIM space where it did not have any product; also there was crunching of the inventory in March, as new products were slated to hit the market.

Some of the major highlights for FY 2009-10 includes a project worth Rs 100 crore from the Delhi Government to roll out country's first Government Radio Network; contract award for the implementation of India's first smart-card based public distribution system in Chandigarh; and bagged India's 1st RAPDRP order of over Rs 500 crore, to implement a state wide power solution in Rajasthan. HCL Infosystems has also been awarded with a project for digitizing of data from Census of India for the year 2010—11. The company is upbeat and its physical security business is gaining momentum with some government sector projects in hand. The company's overseas expansion leads to inorganic growth, and its exports already contributed around Rs 120 crore to its revenue.

Highlights

• Partnerships in government projects
• Services-led comprehensive and dynamic portfolio .