HCL Infosystems has declared its second quarter results for FY10. The company's Q1 consolidated net sales were up at Rs 2,998.97 crore versus Rs 3,086.09 crore. The company's consolidated net profit was down at Rs 58.97 crore versus Rs 66.09 crore, YoY. In an interview with CNBC-TV18, Sandeep Kanwar, CFO, HCL Infosystems spoke about the results and his outlook for the company. Here is a verbatim transcript of the exclusive interview with Sandeep Kanwar on CNBC-TV18. Also watch the accompanying video. Q: If you could run us through your numbers and this time around how has the quarter looked? A: We reported a total revenue of Rs 3027 crore for the quarter and the profit before tax was at Rs 83 crore for this quarter, with a profit after tax (PAT) of Rs 59 crore. On the segment results, we have the two main segments. One is the computer business that clocked a revenue of Rs 817 crore and the PBIT on that was about 5.9% which was pretty much in line with what you have seen in the past. On the telecommunication and office automation segment which has the distribution piece as well as the office product area, we clocked a revenue of over Rs 2000 crore, Rs 2222 crore with PBIT of about Rs 56 crore. That again was around the same range as we have seen in the last quarter also at about 2.5%. The EPS of this quarter is about Rs 3.40. The board has declared interim dividend again for this quarter at Rs 50 per share which is now the 25th consecutive quarter of declaring interim dividend. That is just a brief snap short on the number piece. Q: If you could give us an update as far as the BSNL order is concerned, how much is taken by the company? Is it giving up in two circles? A: It is a little premature because currently the bids have just been opened. So the company is L1 in those two circles. But the final awarding is yet to happen and that will entirely depend on BSNL. Q: You have raised about Rs 795 crore via QIP? Could you tell us where these funds would be deployed and where this would be used and in what arenas exactly? A: We have raised Rs 472 crore by way of QIP and another Rs 320 crore will come from the promoters by way of subscription to warrants. The bulk of it has already come in. So that is break of about Rs 740 crore so far that we have received. As we had announced earlier, this money will be used towards beefing up our capabilities in service capability, in system integration, for working capital as well as for possible M&As to fill up certain gap areas. Q: Could you elaborate a little more about the entire BSNL order, how does it stand as of now? A: All I can say right now is the bids have opened. We are L1. But the process takes quite a bit of time and eventually it will be up to BSNL to award the contracts. Q: The funds that you have raised of Rs 470 crore, will it be used for any kind of acquisitions? A: The overall purpose for the QIP and the other funds will partly be used for acquisitions as well. But there is nothing that has been identified as yet. So I really cannot talk about that right now.
HCL Infosystems
