HCL Infosystems reports revenue of Rs 4,340 crore in FY19

HCL Infosystems said on Thursday its revenue in 2018-19 moved up to Rs 4,340 crore from Rs 3,565 crore in the previous fiscal.

The distribution business share was Rs 3,722 crore (Rs 3,017 crore in FY18), enterprise distribution Rs 1,704 crore (Rs 1,525 crore), consumer distribution Rs 2,018 crore (Rs 1,492 crore) and global services business Rs 486 crore (Rs 376 crore).

The loss before interest, tax and exceptional items narrowed to Rs 25.6 crore in FY19 versus Rs 35.5 crore in FY 18. Revenue (including other income) from discontinued operations in FY 19 was Rs 53 crore and profit before tax (before exceptional items) was Rs 3.1 crore.

"In FY 19 we further consolidated our business and focused on our distribution and overseas services," said company's Managing Director Rangarajan Raghavan. "Realisation of receivables from certain systems integration projects continue to pose challenges."

HCL Infosystems' systems integration business has been facing the challenge of inordinate delays in customer acceptances and payments, especially in the power sector.

"We are continuously engaging with customers to resolve these issues. However, we continue to face challenges and have had limited success so far. During the quarter, we have provided for Rs 33.8 crore on account of such receivables," said Raghavan.

The delay in realisation of these receivables has impacted the company's capacity to invest in other businesses which have the potential for growth. To reduce debt obligations, the company has decided to monetise its properties in a phased manner.

-ANI