HCL Infosystems registers Rs12.43cr revenue with operating loss of Rs14.72cr in Q3FY22

9 Feb 2022 , 09:16 AM

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

Q3’ FY22 Business Highlights:

• Q3’ FY22 revenue was Rs12.43cr
• Systems Integration and Solutions business reported revenue of Rs10.38cr
• Loss Before Tax and exceptional items was Rs14.72cr
• Exceptional non-recurring gain during this quarter on account of:
• Profit on sale of properties was Rs7.38cr.
• Loss Before Tax after considering exceptional items Rs7.34cr

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”, the company said.

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.

On Wednesday early morning trade, HCL Infosystems was trading at Rs21.50 per piece down by 3.80% on Sensex.