Expect margin expansion in 2011: HCL Infosystems

HCL Infosystems has been awarded an order worth Rs 250 crore from Bharat Sanchar Nigam Limited (BSNL) for deploying a state-of-the-art facility for printing and managing BSNL customer bills.

For the quarter ended December 2010, the company's net sales came in at Rs 3154 crore as compared to Rs 3054 crore it reported during the same period last year, a jump of 3%. Net profit rose 1% to Rs 55.98 crore as against Rs 56.09 crore in December 2009.

In an interview with CNBC-TV18, Harsh Chitale, Chief Executive Officer, HCL Infosystems gave his perspective on the quarter gone by and the road ahead.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Your sales have been about flat in the quarter under review that is your third quarter. Can you take us through what the highlights were and how would the margin picture panned out?

A: We have three different main areas of business. While on the whole sales and profit on a year on year basis look flattish, on quarter on quarter net profits have gone up by 18% and what has lead to all of this is as follows