Stock Report

HCL Infosystems registers Rs. 8.16 Crores revenue with operating loss of Rs. 9.30 Crores in Q3'FY24

Posted On : 2024-02-13 22:07:14( TIMEZONE : IST )

HCL Infosystems today announced its financial results for the quarter ended Dec 31st, 2023.

Q3' FY24 Business Highlights:

- Q3'24 revenue was Rs. 8.16 Crores
- Systems Integration and Solutions business reported revenue of Rs. 6.78 Crores
- Loss Before Tax after considering exceptional items was Rs. 9.30 Crores as against profit of Rs. 4.84 reported in Q2'24 as explained below:

- Q3 expenses include higher legal costs for ongoing arbitration proceedings
- Q2 included an exceptional gain of Rs. 11.96 Crores on account of sale of property.

Mr. Raj Sachdeva, Manager of HCL Infosystems Ltd, commenting on the results' said, "In Q3'24, the Company continued to focus on arbitration proceedings, expediting deliverables of existing projects and improving collection of receivables from customers.

Company Update

As previously mentioned in our news releases, our Systems Integration and Solutions business has continued to face challenges in obtaining timely customer acceptance and sign-offs for completed projects, leading to delays in receiving payments. As a result, though the number of contracts reaching closure has increased, there is no significant progress in recovering outstanding receivables from customers. To address this issue, the Company has taken the step of initiating arbitration proceedings against several customers to recover the dues owed. Due to multiple legal arbitration proceedings and legacy issues, significant effort and cost is being incurred on legal and legacy matters.

Shares of HCL Infosystems Limited was last trading in BSE at Rs. 18.00 as compared to the previous close of Rs. 18.70. The total number of shares traded during the day was 141164 in over 293 trades.

The stock hit an intraday high of Rs. 18.60 and intraday low of 17.77. The net turnover during the day was Rs. 2537743.00.