HCL Infosystems sees 6% drop in Q3 revenues

NEW DELHI: HCL Infosystems on Friday reported a 6% drop in revenues for the three months to end March but said it expects to grow revenues in the coming quarters backed by higher sales of personal computers and laptops.

Lower revenues also muted earnings growth with the IT hardware company posting 3.4% increase in net profit to Rs 60 crore for its third quarter ended March, 2010. The growth in net profit was attributed to improved operating efficiencies even as net sales declined to Rs 2,815 crore due to lower sales to telecom sector. “With improvement in customer sentiment and healthy signs shown by world economies, we expect Indian IT market to see positive growth going ahead,” HCL Infosystems CEO Ajai Chowdhry said.

The company is looking to expand operations through mergers and acquisitions in Middle-east and Africa. The deal could vary from $5 million to $100 million depending on the target, Mr Chowdhry said.

HCL Infosystem’s scrip moved up 1.95% to close at Rs 133.65 at BSE on Friday when the 30-stock benchmark Sensex moved up marginally.

The company bagged system integration projects across sectors including infrastructure, homeland security and e-governance during the quarter. HCL is eyeing projects from the public sector to drive its growth in the coming quarters and is chasing big projects in the power sector.