IT major HCL Infosystems has restructured its business to enhance focus on services and distribution verticals.
Under the restructuring, effective November 1, HCL Infosystem’s businesses of solutions, services and learning have been transferred to the wholly-owned subsidiaries HCL Infotech, HCL Services and HCL Learning respectively.
The products distribution business would be with the parent entity – HCL Infosystems.
“The restructuring is part of our strategy to enable sharper focus on each core business and adopt a customised strategic approach for each business area. You can call this our 2.0, the objective was clear. We want to enable each business to meet its individual requirements,” said HCL Infosystems CEO and Managing Director Harsh Chitale.
HCL Infosystems said there will be better visibility on the financial and operational performance of each business, restructuring would address more effectively the funding and capability acquisition needs of these businesses.
Its distribution business witnessed a q-o-q growth of 13 percent backed by robust growth of telecom distribution revenues.
“Restructuring will enable us to focus on distribution and services business, both of which are growing in double digits,” he added.
Chitale said the IT firm aims to increase momentum of non-telecom distribution through addition of more IT brands, office automation and consumer electronics space and not so much on manufacturing IT hardware.
Rothin Bhattacharya, executive vice president, Marketing, Strategy & Business Development, HCL Infosystems said: “While employees will be transferred to the respective subsidiaries, there will be no change in the employment conditions and HCL’s people-focus culture. Our large growth focus businesses such as Services and Distribution will be able to receive undivided focus and attention”.
Meanwhile, HCL Infosystems reported a 41.7 per cent decline in its standalone net profit at Rs 1.48 crore for the quarter ended September 30, 2013. The company posted a net profit of Rs. 2.54 crore in the corresponding period last year.
Standalone net sales of the firm dropped 32 per cent to Rs 1,593.48 crore in the quarter ended September, 2013 from Rs 2,341.68 crore last year. The company follows the July-June cycle as its fiscal year.
Enterprise Services business, now part of HCL Services, saw y-o-y growth of 15 percent in this quarter.
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