HCL Infosystems FY08 net dips 4.12%

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New Delhi, Sept 2 (UNI) HCL Infosystems today said its net profit has slipped 4.12 per cent to Rs 304.75 crore for the year ended June 30, 2008 as against Rs 317.85 crore for the previous fiscal.

The company's net profit for the quarter ended June 2008 fell 23.29 per cent to Rs 65.13 crore as compared to Rs 84.90 crore in the corresponding quarter last year.

The company attributed these drops to fewer milestone payments and a decline in the interest-rate sensitive consumer-business.

''HCL Infosystems' system integration (SI) business, which contributes 30 per cent of its revenue, depends on milestone payments rather than a regular income stream,'' company Chief Financial Officer Sandeep Kanwar told reporters here.

The second factor we did see was consumer business has been impacted due to the overall economic condition, he added.

Mr Kanwar said the rising interest rates, which are at seven-year high, have crippled demand and slowed sales of goods dependent on financing.

HCL Infosystem's order book stood at Rs 1,200 crore, which is to be realised over the next several quarters.

The net sales for the June quarter rose to Rs 3,114.77 crore against Rs 3,061.45 crore during the same period last year.

During the year, the net sales of the company, however, increased to Rs 12,411.4 crore against Rs 11,671.86 crore last year, up 6.55 per cent.

HCL also plans to expand its SI portfolio to include BFSI Co-operative, Security, Education and Defence.

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