The company’s Board of Directors has additionally authorised the sale of its wholly-owned subsidiary HCL Infotech Ltd to Novezo Consulting at a purchase order value based mostly on the enterprise worth of HCL Infotech as of the date of the share switch.
The company had posted a consolidated net revenue of Rs 14.5 crore within the year-ago interval.
The consolidated income from operations decreased to Rs 72.03 crore for the quarter underneath assessment from Rs 428.73 crore in the identical interval final fiscal, HCL Infosystems mentioned in a regulatory submitting.
The losses are totally on account of delayed receipts on sure system integration contracts, sure historic low margin contracts, slow-down of distribution businesses and finance prices, the submitting mentioned.
In a press release, HCL Infosystems mentioned its Systems Integration and Solutions enterprise reported a income of Rs 38 crore.
Distribution enterprise income was at Rs 34 crore, of which Consumer Distribution accounted for Rs 29 crore and Enterprise Distribution accounted for Rs 5 crore, the assertion mentioned.
On the take care of Novezo Consulting, HCL Infosystems mentioned the enterprise worth of HCL Infotech was Rs 147 crore as of September 30, 2020, which might be adjusted based mostly on the steadiness sheet place of HCL Infotech as on the cut-off date of the transaction.
The buy value might be paid by means of a mix of money and Optionally Convertible Debentures, it added.
The income and net price of HCL Infotech Ltd was Rs 148.03 crore and Rs 523.16 crore, respectively, the submitting mentioned.
“This transaction excludes UIDAI and Rajasthan power projects; Residual Business (assets and liabilities, which consist of completed HCLI SI Projects and other discontinued and closed projects of HCL Infotech Ltd); and HCL Investments Pte and its step-down subsidiary, Nurture Technologies FZE,” in accordance to the submitting.
HCL Infosystems mentioned over the previous a number of quarters, the company’s administration has been constantly making efforts to rationalise its companies by means of actions/initiatives aimed toward lowering the company’s debt in addition to enterprise losses.
The sale of HCL Infotech Ltd is in line with these initiatives, it mentioned.
In the previous, sure loss-making companies like PC manufacturing, monetary inclusion, studying, and enterprise and shopper distribution enterprise have been wound down. Other companies resembling Care (Consumer Services), Enterprise Services, and abroad companies in Singapore and the Middle East have been bought off.
This was as well as to the sale of unutilised surplus properties, whose proceeds had been used to scale back excellent financial institution loans.
“Despite all these efforts to reduce debt and losses as well as promoter’s financial support from time to time, the company continues to face very challenging financial conditions and a very tight fund position. As a consequence, the company has no ability to invest in any new businesses or in expanding its current operations and consequently, the business of the company will continue to contract for the foreseeable future,” it mentioned.