HCL Infosystems Reports Reduced Losses in December Quarter
New Delhi, Feb 8 – HCL Infosystems has announced a reduction in losses to ₹5.25 crore for the December quarter, down from ₹9.30 crore during the same period last year, as per a company filing. The company’s revenue from operations fell by 30.14% to ₹5.70 crore in the third quarter of the current fiscal year, compared to ₹8.16 crore a year earlier. On a sequential basis, revenue decreased by 16%.
Raj Sachdeva, Manager at HCL Infosystems, stated that the company has been concentrating on initiatives to recover long-standing receivables and reduce operational losses. However, the business continues to encounter difficulties in obtaining timely customer acceptance and sign-offs for completed projects, resulting in delays in payment collection. Although the number of contracts reaching closure has increased, there has been minimal progress in recovering outstanding receivables.
To address these issues, the company has initiated arbitration proceedings against several customers to recover owed dues. The ongoing legal arbitration and legacy issues are incurring significant effort and costs. Additionally, the company faces challenges related to project execution costs, regulatory compliance, internal finance management, ongoing litigations, and provisions for unutilized GST input tax credit, leading to an expectation of limited business opportunities in the near future.
In other news, HCL Infosystems announced the retirement of Ritu Arora, Independent and Non-Executive Director, who will conclude her second term on April 5, 2025. Rita Gupta has been appointed as an Additional Non-Executive Director, according to the statement.
