IT hardware solutions firm HCL Infosystems reported a standalone net loss of R40.25 crore for the quarter ended June, mainly due to loss from hardware business and increase in finance cost.
The firm had posted a net profit of R2.55 crore in the year-ago period, the company said in a BSE filing.
HCL Infosystems CEO Harsh Chitale said: “It was a tough year for us with difficult market conditions for our hardware business, high interest costs and high impairment of overdue receivables coupled with issues like rupee depreciation.”
However, the firm’s growth focus area, IT Services, has continued to perform well in terms of new customer additions and large-ticket outsourcing deals, he added.
HCL’s, which deals in computer products, registered widening of loss at R77.32 crore in its hardware products and solution business during the reported quarter from loss of R38.13 crore in the same period a year ago.
“We are also carrying a healthy order book of R4,000 crore for our systems integration business as we enter into the next fiscal. However, challenges of delay in milestone sign-offs and release of payment by select public sector customers continue to plague the business resulting in cost over-runs, write-offs and interest burden on working capital,” Chitale said.
For its fiscal ended June, HCL posted consolidated net loss of around R80 crore where as the company had made profit of R72 crore a year ago.