Stock Report

HCL Infosystems registers Rs. 12.43 Crore revenue with operating loss of Rs. 14.72 Crore in Q3' FY22

Posted On : 2022-02-09 07:12:46( TIMEZONE : IST )

HCL Infosystems has announced its financial results for the quarter ended December 31st, 2021.

Q3' FY22 Business Highlights:

Q3' FY22 revenue was Rs. 12.43 Crore
Systems Integration and Solutions business reported revenue of Rs.10.38 Crore
Loss Before Tax and exceptional items was Rs. 14.72 Crore
Exceptional non-recurring gain during this quarter on account of:

Profit on sale of properties was Rs. 7.38 Crore.

Loss Before Tax after considering exceptional items Rs. 7.34 Crore

Mr. Raj Sachdeva, Manager of HCL Infosystems Ltd, commenting on the results' said, "During the quarter, the Company continued to focus on monetization of properties and realization of tax refunds to help in reduction of debt and losses."

Our Systems Integration and Solutions business continued to face delays in customer acceptance and sign-offs on project completion from certain customers, particularly those in the power sector, resulting in delays in recovering receivables. The team has been continuously engaging with this set of customers to recover the outstanding dues and the Company is also pursuing legal options by invoking arbitration to recover the receivables.This is leading to high legal cost as reflected in legal and professional expenses.

As stated in several earlier press releases, during the last few years, the Company has been struggling due to operational losses, high debt obligation and challenging market conditions. Therefore, the Company's focus has been on reducing operational losses and debt and finance costs by scaling down certain businesses and selling off select businesses and assets, including certain immovable properties.

Despite all these efforts to reduce debt and losses and the promoter's finanical support of the Company from time to time, the Company continues to face very challenging funding conditions and remains in a very tight financial position. As a consequence, the Company has no ability to invest in any new businesses or in expanding its current operations and consequently the business of the Company will continue to contract for the foreseeable future.

Shares of HCL Infosystems Limited was last trading in BSE at Rs. 22.35 as compared to the previous close of Rs. 23.15. The total number of shares traded during the day was 319467 in over 2392 trades.

The stock hit an intraday high of Rs. 23.70 and intraday low of 22.00. The net turnover during the day was Rs. 7176046.00.