HCL Infosystems is a software major belonging to the HCL group.It is engaged in providing a host of software solutions that are web based . It is particularly active in the areas of enterprise resource planning(ERP), networking, e-commerce and systems reengineering. The company is a partner with Lucent Technologies for cabling and connectivity. Its PC Brand and servers have the largest market share in Indian markets. It also provides fully integrated solutions for internet service providers and also develops workstations.
With the present boom in demand for hardware, following reduction of import duties on several components and penetration of the internet, the company's prospects are extremely encouraging.
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Other adjustments during the current year include Rs 51 m provided towards the company's voluntary retirement scheme which is a non recurring cost.This Vrs scheme shall considerably reduce employee costs in future as 260 employees have opted for the same. This is why the growth in net profits is nominal. Otherwise it would have grown by 60%. Its new internet subsidiary HCL Infinet will go operational shortly adding to the topline. Its acquistion in Singapore FEC Infosystems has bagged a Rs 80 m project which should boost revenues.
During the current quarter three additional software technology parks were set up at Noida,Chennai and Hyderabad, which will enable the company to avail complete tax exemption from revenue derived from these units despite the taxability of export income from 2000-01.
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