Consolidated revenue for the quarter is Rs 1192.5 crores (US$ 262.7 Mn), grows at 61%. Consolidated Profit before tax for the quarter is Rs 65.6 crores (US$ 14.5 Mn), grows at 99%.

New Delhi, April 21, 2004: HCL Infosystems Ltd (HCL Insys), India's premier Information enabling company today announced its un-audited results for the quarter ended March 31, 2004.

Consolidated:
The company has reported consolidated revenue of Rs. 1192.5 crores (US$ 262.7 Mn) during the quarter ended March 31, 2004 as against Rs. 738.6 crores (US$ 162.7 Mn) in the corresponding quarter of the previous year. Profit before tax is reported at Rs. 65.6 crores (US$ 14.5 Mn) as against Rs. 33.0 crores (US$ 7.3 Mn) in the corresponding quarter of the previous year, a growth of 99%.

Revenue from the Computer Systems business is Rs. 424.1 crores (US$ 93.4 Mn) as against Rs. 339.3 crores (US$ 74.7 Mn) in the corresponding quarter of the previous year, a growth of 25 %. Profit before interest and taxes is at Rs. 40.0 crores (US$ 8.8 Mn) as against Rs 31.4 crores (US$ 6.9 Mn) in the corresponding quarter of the previous year, a growth of 27 %. YTD revenue growth is 42%.

Revenue from the Office Automation and Telecommunication business is Rs. 764.0 crores (US$ 168.3 Mn) as against Rs. 391.4 crores (US$ 86.2 Mn) in the corresponding quarter of the previous year, a growth of 95%. Profit before interest and taxes is at Rs. 23.7 crores (US$ 5.2 Mn) as against Rs 12.2 crores (US$ 2.7 Mn) in the corresponding quarter of the previous year, a growth of 95%.

The company has reported consolidated revenue of Rs. 3091.5 crores (US$ 681.0 Mn) and a profit after tax at Rs. 129.3 crores (US$ 28.5 Mn) during the nine months ended March 31, 2004, a growth of 121%

Profit after tax for the year ended June 30, 2003 was Rs. 92.7 crores (US$ 20.4 Mn).

Continuing the practice of quarterly dividends, The Board of Directors has declared a third interim dividend of 60%. During the first half two quarterly interim dividend of 30% & 50% were declared. For the year ended June 30, 2003 the Company had declared a final dividend of 100%.

Parent Company:

Software and Office Automation & Telecommunication businesses of the Company were demerged / transferred with effect from 1 January, 2003. Hence figures for the nine months are not comparable with those of the relevant previous period.

The turnover of the company on "standalone" basis during the quarter ended March 31, 2004 is Rs 424.1 crores (US$ 93.4 Mn) and the Profit after tax is reported at Rs. 36.3 crores (US$ 8.0 Mn). The turnover during the nine months ended March 31, 2004 is Rs. 1132.5 crores (US$ 249.4 Mn) and the Profit after tax is reported at Rs. 91.2 crores (US$ 20.1 Mn).

Conversion rate 1US$ = 45.40 INR

Announcing the results, Mr Ajai Chowdhry, Chairman and CEO, HCL Infosystems Ltd, said, "This has been a satisfying quarter for us on multiple fronts. Our business grew robustly in all areas, made possible by high quality cutting edge products & excellent customer service. The government's initiative in encouraging PC manufacturing by lowering the taxes resulted in increasing of volumes. We also got excellent support from all our key partners like Intel, AMD, Microsoft, Toshiba, Nokia & Ericsson".

The system integration business continued to provide large deals; from telecom sector BSNL units placed some large orders on the company. On the Enterprise business some of the large orders bagged by the company came from Canara Bank, ITC, Jawaharlal Nehru Technical University, Department of Post, Airport Authority of India, Mantralaya, Government of Maharashtra, Cochin Port Trust, Saw Pipes, Blazeflash couriers, SBI & LIC of India.

In the server space HCL bagged prestigious orders from National Informatics CenterIndian Overseas Bank, Dena Bank, Corporation Bank, Siemens, Kerala Foresteries, Bajaj Auto, Analog Devices, Bangalore, Gujarat Alliance, Ushodaya Enterprise, Hyderabad, SBI Indore, State Bank of Patiala, Schneider Electric, Haryana Police, State Bank of Mysore, IIT Karagpur, State Bank of Travancore, Punjab National Bank and Indian Quotation Systems, Mumbai

Elaborating further Mr. Chowdhry said that," Traditionally we have observed higher revenues in this quarter, and this time too, the trend continued. Our new products & initiatives are beginning to show results."

The home PC business witnessed good volume growth with the introduction of a sub 15k PC .The Company also added large number of resellers & retailers across the country, taking the number over 1000. Orders came in for the Beanstalk, BusyBee and Ezeebee PCs from, Indian Institute of Management & Technology, Rai University, Department of Post, Delhi Public School, Tata Institute of Social Sciences, Doon International School, Gun & Shell factory, Ichapore to name a few. The launch of major new models in Beanstalk & EzeeBee range brought in good results. The company's new retail POS products have started gaining acceptance with customers, with installations at Subway, Bata, and Pizza Hut et al.

For Notebooks business HCL launched retail outlets, 'Shop Toshiba' across the country and bagged orders for Toshiba Notebooks from Infosys, DFID, HSBC, Thermax, Pune and Tata Telecom among others.

In March 2004, HCL entered into a strategic OEM alliance with PortWise, Europe's leading company for SSL (Secure Sockets Layer) VPN (Virtual Private Network) solutions, thereby enhancing its capabilities in the security services area. HCL launched 'HCL Info SecuAccess' to provide secure remote access to it's wide range of customers.

In the networking and security services business HCL bagged LAN/WAN orders in the Oil sectors in Western India, large LAN/WAN & Security & Load balancing solution order from a manufacturing company in Western India, two large facilities management orders for e-Governance project in Southern India, Large LAN/WAN order from the Power Sector in East India, Multi-site LAN with core switching technology from the Defence sector in North India, LAN/ WAN and Security from a research institute in North India.

For Virtual Private Network solutions, HCL Infinet bagged two of the most prestigious orders from LG and Apollo Tyres (covering 137 Locations).

On the imaging products and services business, as has been the tradition in the past, shows higher volume this quarter and got orders from Delhi Police, Ministry of Health, Accenture, Indian Bank and Gujarat Informatics Ltd among others.

In the Telecom area, the company bagged orders from Air force headquarters, Delhi, Hughes Network Systems, Gurgaon, Accenture, IG Prisons, Karnataka and Hughes, Bangalore. The company increased its existing sales & support network for Nokia GSM handset business, which witnessed high growth on account of the expanding telecom market in the country.

About HCL Infosystems
HCL Infosystems, India's premier information enabling and integration company offers its customers technology solutions across multiple platforms. It has partnerships with some leading global players like Intel, Toshiba, AMD, Ericsson, Microsoft, Nokia and Sun Microsystems among others.

HCL Infosystems has direct customer service centers across 260 locations and two ISO 9001 certified state-of-the-art manufacturing facilities. With a mission to provide world-class information technology solutions and services to enable its customers to serve their customers better, HCL Infosystems is forever setting new standards of IT in the country.