Research And Views Archives

HCL Info: Strong growth, but...
(Company Info)

Sep 26, 2005

HCL Infosystems, India's leading hardware company, has a direct presence in over 300 locations across India and a channel base of over 44,000 channel partners. The company is also the country's leading distributor of Nokia GSM phones. It seems that the company is operating in the right business at the right time. This is because there is tremendous potential in both of HCL's major businesses, that is, PCs and mobile phones. The penetration levels of both these products are very low in India comp

Moser Baer: At the receiving end!
(Company Info)

Nov 2, 2004

Moser Baer, the largest Indian player in the global optical media industry (CDs, floppy discs), had recently announced its results for the quarter and half-year ending September 2004. The company has reported yet another quarter of poor performance where it has faced pressure on both the topline and the bottomline.

HCL Infosys: On a higher wavelength!
(Company Info)

Oct 21, 2004

HCL Infosystems has announced its consolidated results for the first quarter of FY05, reporting strong YoY growth in both the topline and the bottomline. Strong growth across all segments has helped rev up the company’s performance in 1QFY05. However, rising raw material costs, intensifying competition and the consequent pricing pressure seems to have taken toll on its margins. On a standalone, while revenues have grown YoY by 24%, profits are almost flat.

Moser Baer: Riding the digital wave!
(Company Info)

Sep 23, 2004

Despite the volatility surrounding the Indian markets, stocks from the software sector have rallied during the past few months. While a major proportion of the overall interest towards these stocks was concentrated on a few large players, one relatively small company that has, by far, outperformed the sector stocks over the last one month is Moser Baer.

HCL Infosys: Where to from here?
(Company Info)

Mar 18, 2004

Perhaps no other Indian technology company has provided as much returns to shareholders in the last year as HCL Infosystems (HCL Infosys), the largest personal computer (PC) maker in the country. Apart from the overall rally that was witnessed in the whole of 2003, HCL Infosys' shareholders were rewarded due to an impressive performance from the company. This was mainly aided by its office automation and telecommunication business that raked in a YoY growth of over 90% for the quarter ending Dec

Software: Scaling up!
(Sector Info)

Dec 24, 2003

The year 2003 has been a turnaround year for companies in the Indian software sector - turnaround' in the sense that most of the Indian software companies have witnessed some respite from the pressure that they had been facing on account of slowdown in the global technology spending for the past two years.

Moser Baer: Growth in sight
(Company Info)

Aug 27, 2003

Moser Baer India is one of the few Indian companies that have brought global recognition to the ‘Made in India’ tag. It is the world’s third largest and India’s only player in optical data storage products (referred to as ‘media’) – micro floppy disks, recordable compact disks, data media and audio storage products, etc. This article presents some facts about the company.

HCL Infosystems: Focused efforts
(Company Info)

Apr 25, 2003

HCL Infosystems, the country's largest personal computer maker has posted a steep 112% rise in revenues for 3QFY03, and an exorbitant increase of 230% in its profits. For the nine months ended 31st March 2003, the company has posted a 104% rise in its topline, and 29% increase in profits. However, if a big write-off on account of extraordinary items in 2QFY03 is excluded, the profits rise a whopping 109% in 9mFY03.

GTL: Vertical integration
(Company Info)

Mar 20, 2003

In February GTL announced its decision to acquire Redington Group for a consideration of US$ 95 m (Rs 4.5 bn). Of the total consideration, US$ 50 m (Rs 2.4 bn) was paid in cash, while the remaining US$ 45 m (Rs 2.1 bn) is to be paid by issuing shares of GTL. Redington group will get 14.3 m shares of GTL valued at Rs 150 each. Considering the market price of Rs 65, this is a steep premium.

HCL Tech: The favoured child
(Company Info)

Dec 18, 2002

In a surprise move, HCL Technologies has announced plans to acquire the software exports business of a group company, HCL Infosystems. The acquisition will be made by issuing 7 m shares of HCL Technologies to shareholders of HCL Infosystems. For every seven shares of HCL Infosystems held, shareholders will get 2 shares of HCL Technologies.

HCL Infosystems: Strong performance
(Company Info)

Oct 22, 2002

HCL Infosystems has posted a steep 11% decline in net profits for 1QFY03, on a YoY basis. However, revenue growth continues to be robust. Revenues for 1QFY03 grew by 74% YoY. Though the numbers look disappointing at the first glance, the company’s performance is strong. The decline in net profits is due to higher interest costs and taxes. At the operational level, inspite of pressure on margins, the company’s operating profit has grown by 14%.

HCL Infosys: Falling realisations
(Company Info)

Sep 3, 2002

HCL Infosystems has closed fiscal 02 with a 9% growth in revenues. However, the company’s net profits have declined by a steep 21% for the second consecutive year. The drop in bottomline is due to a sharp decline in operating margins. The fall in operating margins began in FY99 and has continued since. However, the fall in FY02 was the steepest as margins fell from 7.7% in FY01 to 4.7% in FY02.

GTL: Other income takes toll
(Company Info)

Jul 29, 2002

GTL Limited (erstwhile Global Tele Systems) has posted a 5% sequential decline in revenues for 1QFY03. The drop in net profits is significantly higher at 32%. However, this is due to a steep decline in other income and a tax reversal that inflated profits for 4QFY02.

Tata Infotech: Slips into red
(Company Info)

Jul 29, 2002

Tata Infotech has posted a loss of Rs 11 m for 1QFY03. This is due a steep fall in revenues during the quarter. On a sequential (QoQ) basis the company’s revenues have declined by 16%.

Tata Infotech: Slowdown takes toll
(Company Info)

Jun 10, 2002

The slowdown in the software business has adversely impacted Tata Infotech’s financials. The company has posted an 8% decline in revenues for the fiscal ’02 and the fall in bottomline has been steeper at 23%. Operating margins heading south due to a 12% rise in employee costs is primarily responsible for the significant drop in net profits.

HCL Infosys: Change in portfolio
(Company Info)

Apr 22, 2002

HCL Infosystems has the distinction of being India’s largest PC manufacturer. According to IDC, HCL Infosys held 8.6% of the market share in volume terms for the calendar year 2001. The company however, is not limiting its focus to hardware but is gradually changing its portfolio to a judicious mix of services and hardware sales.

HCL Infosys: Change in portfolio
(Company Focus)

Apr 20, 2002

HCL Infosystems has the distinction of being India’s largest PC manufacturer. According to IDC, HCL Infosys held 8.6% of the market share in volume terms for the calendar year 2001. The company however, is not limiting its focus to hardware but is gradually changing its portfolio to a judicious mix of services and hardware sales.

Software: Betting on ITBPO
(Sector Focus)

Apr 20, 2002

Sometime back, in September 2001 to be precise, McKinsey & Co, a management consultancy firm, outlined four different growth options for the erstwhile software and now the IT services industry. The future directions for growth according to McKinsey were contract manufacturing, systems integration, information technology & business process outsourcing (ITBPO) and technology innovation. The Indian IT industry has chosen to bet on ITBPO.

Global Tele: Dull show
(Company Info)

Apr 19, 2002

GTL Limited (erstwhile Global Tele) reported a 35% decline in topline for FY02. The net profits have declined by a steep 74% including extraordinary income of Rs 1,952 m in FY02. Excluding the extraordinary income the bottomline has declined by 57%, as last year’s extraordinary income was higher than in FY02. Falling sales in certain business segments have adversely impacted the financials of the company.

HCL Infosystems: Margins under pressure
(Company Info)

Apr 18, 2002

In 3QFY02, HCL Infosystems has managed to arrest the decline in topline that was seen for first half of FY02. The company has posted a 4.5% growth in topline on a YoY basis. However, falling operating margins have caused the company’s net profits to decline by 45%.