MIRA
INFORM REPORT
|
Report Date : |
11.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
HCL TECHNOLOGIES LIMITED |
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|
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Registered
Office : |
806, Siddharth, 96, Nehru Place, New Delhi –
110 019 |
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Country : |
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Financials (as on)
: |
30.06.2012 |
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Date of
Incorporation : |
12.11.1991 |
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Com. Reg. No.: |
55-046369 |
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Capital
Investment / Paid-up Capital : |
Rs.1386.600
millions |
|
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|
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CIN No.: [Company Identification
No.] |
L74140DL1991PLC046369 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELH01586E/ DELH02634C |
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PAN No.: [Permanent Account No.] |
AAACH1645P |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject is primarily engaged in providing a range of software
services, business process outsourcing and infrastructure services. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 264260000 |
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|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having excellent track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Bank Facilities: AA+ |
|
Rating Explanation |
The high credit quality it carries low credit risk. |
|
Date |
December, 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
Commercial Paper Programme: A1+ |
|
Rating Explanation |
The highest credit quality it carry lowest credit risk. |
|
Date |
December, 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
806, Siddharth, 96, Nehru Place, New Delhi –
110 019, India |
|
Tel. No.: |
91-11-26444812 |
|
Fax No.: |
91-11-26436336 |
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E-Mail : |
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|
Website : |
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Secretarial
Office : |
A-9, 10 and 11, Sector – 3, Noida – 201 301,
Uttar Pradesh, India |
|
Tel. No.: |
91-120-2520917, 2520937, 2520997 |
|
Fax No.: |
91-120-2526907 |
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|
|
|
Software
Development Centre : |
Located at: ·
Chennai ·
Gurgaon ·
Kolkata ·
Noida ·
Hyderabad ·
Bangalore ·
Pune ·
Mumbai |
DIRECTORS
As on 30.06.2012
|
Name : |
Mr. Shiv Nadar |
|
Designation : |
Chairman and Chief Strategy Officer |
|
Address : |
44, Friends Colony (East), New Delhi – 110 065, India |
|
Date of Birth/Age : |
18.07.1945 |
|
Date of Appointment : |
11.01.1993 |
|
DIN No.: |
00015850 |
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|
Name : |
Mr. Vineet Nayar |
|
Designation : |
Vice Chairman and Chief Executive Officer |
|
Address : |
A-178, Sector 40, Gautambudhnagar, Noida – 201 301, Uttar Pradesh, India |
|
Date of Birth/Age : |
09.04.1962 |
|
Date of Appointment : |
01.08.2008 |
|
DIN No.: |
02007846 |
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|
Name : |
Ms. Robin Ann Abrams |
|
Designation : |
Non-Executive Director |
|
Address : |
751, Linden Avenue, Los Altos CA94022 – 94022, USA |
|
Date of Birth/Age : |
12.05.1951 |
|
Date of Appointment : |
13.09.1999 |
|
DIN No.: |
00030840 |
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Name : |
Mr. Subroto Bhattacharya |
|
Designation : |
Non-Executive Director |
|
Address : |
E-10, Sector 40, Noida – 201 301, Uttar
Pradesh, India |
|
Date of Birth/Age : |
12.10.1940 |
|
Date of Appointment : |
08.05.2003 |
|
DIN No.: |
00009524 |
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Name : |
Mr. Amal Ganguli |
|
Designation : |
Non-Executive Director |
|
Address : |
J-6/7, DLF Qutab, Enclave Phase II, Gurgaon – 122 002, Haryana,
India |
|
Date of Birth/Age : |
17.10.1939 |
|
Date of Appointment : |
08.05.2003 |
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DIN No.: |
00013808 |
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Name : |
Mr. Srinivasan Ramanathan
|
|
Designation : |
Non-Executive Director |
|
Address : |
47, Kasturi Ranga
Road, Alwarpet, Chennai – 600 018, Tamilnadu, India |
|
Date of Birth/Age : |
08.06.1946 |
|
Date of Appointment : |
19.04.2011 |
|
DIN No.: |
00575854 |
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|
Name : |
Mr. Sudhindar Krishan
Khanna |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. Srikant Madhav
Datar |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Sosale Shankara
Sastry |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Manish Anand |
|
Designation : |
Secretary |
|
Address : |
B-5/31, Paschim Vihar,
New Delhi – 110 063, India |
|
Date of Birth/Age : |
15.11.1968 |
|
Date of Appointment : |
01.07.2006 |
|
PAN No. : |
ACAPA7717J |
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|
|
|
Name : |
Mr. Anil Chanana |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
311964982 |
44.92 |
|
|
8779 |
0.00 |
|
|
394 |
0.00 |
|
|
8385 |
0.00 |
|
|
311973761 |
44.92 |
|
|
|
|
|
|
119548908 |
17.21 |
|
|
119548908 |
17.21 |
|
Total shareholding of Promoter and Promoter Group (A) |
431522669 |
62.13 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
27074420 |
3.90 |
|
|
409382 |
0.06 |
|
|
30872284 |
4.44 |
|
|
151433987 |
21.80 |
|
|
600 |
0.00 |
|
|
600 |
0.00 |
|
|
209790673 |
30.20 |
|
|
|
|
|
|
23073134 |
3.32 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs.0.100
million |
16274525 |
2.34 |
|
|
1320891 |
0.19 |
|
|
12579928 |
1.81 |
|
|
468381 |
0.07 |
|
|
47227 |
0.01 |
|
|
2571450 |
0.37 |
|
|
9062 |
0.00 |
|
|
509245 |
0.07 |
|
|
158763 |
0.02 |
|
|
8815800 |
1.27 |
|
|
53248478 |
7.67 |
|
Total Public shareholding (B) |
263039151 |
37.87 |
|
Total (A)+(B) |
694561820 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
694561820 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily engaged in providing a range of software
services, business process outsourcing and infrastructure services. |
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Products/ Services : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Citibank N.A., Global Corporate and
Investment Banking, DLF Centre, 5th Floor, Parliament Street, New
Delhi – 110 001, India ·
Deutsche Bank AG, Corp. Office -
DLF Square, 4th Floor, Jacaranda Marg,
DLF City, Phase – II, Gurgaon – 122 002, Haryana, India ·
Standard Chartered Bank, Corporate
and Institutional Banking, Credit Operations, H -2, Connaught
Circus, New Delhi – 110 001, India ·
State
Bank of India, Corporate Accounts Group Branch, 11th /12th
Floor, Jawahar Vyapar Bhawan 1, Tolstoy Marg, New
Delhi – 110 001, India ·
ICICI
Bank Limited, 9-A, Connaught Place, New Delhi,
India |
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Facilities : |
Notes: Long
term borrowings 1.
These debentures have a maturity period ranging from three years to five
years and are secured against computers, softwares,
plant and machinery, receivables from subsidiaries and specified land and
building of the Company. 2.
Secured by hypothecation of gross block of vehicles of Rs.438.600 millions
(Previous year Rs.154.900 millions) at an interest rate ranging from 8% to
11%. The loans are repayable over a period of 3 to 5 years on a monthly
basis. 3. Obligations under finance lease are secured by vehicles
taken on lease. |
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Banking
Relations : |
-- |
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Financial Institution : |
IDBI Trusteeship Services Limited, Asian Bldg., Ground
Floor, 17, R.Kamani Marg,
Ballard Estate, Mumbai - 400001, Maharashtra, India |
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|
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Auditors : |
|
|
Name : |
S.R. Batllboi and Company Chartered Accountants |
|
Address : |
Golf View Corporate Tower B, Sector 42, Sector Road, Gurgaon – 122 002, Haryana,
India |
|
PAN No..: |
AALFS0506L |
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Subsidiaries : |
·
HCL Comnet Systems and
Services Limited ·
HCL Bermuda Limited ·
HCL Technologies (Shanghai) Limited ·
HCL GmbH ·
HCL Eagle Limited (Incorporated w.e.f 14th September, 2011) ·
HCL Great Britain Limited ·
HCL (Netherlands) BV ·
HCL Belgium NV ·
HCL Sweden AB ·
HCL Italy SLR ·
HCL Australia Services Pty. Limited ·
HCL Singapore Pte.
Limited ·
HCL (New Zealand) Limited ·
HCL Hong Kong SAR Limited ·
HCL Japan Limited ·
HCL Comnet Limited ·
HCL America Inc. ·
HCL Holdings GmbH ·
HCL Global Processing Services Limited ·
HCL BPO Services (NI) Limited ·
HCL (Malaysia) Sdn. Bhd. ·
HCL EAI Services Limited ·
HCL Poland sp. z o.o ·
HCL EAS Limited ·
HCL Insurance BPO Services Limited ·
HCL Expense Management Services Inc. ·
Axon Group Limited ·
Axon Solutions (Canada) Inc. ·
Bywater Limited ·
Axon Solutions Schweiz Gmbh ·
Axon Solutions Pty. Limited ·
Axon Solutions Inc. ·
Axon Acquisition Company, Inc. ·
Axon Solutions Limited ·
Axon Solutions Sdn. Bhd. ·
Axon Solutions Singapore Pte.
Limited ·
Axon Solutions (Shanghai) Co. Limited ·
HCL Axon (Proprietary) Limited ·
JSPC- I Solutions Sdn. Bhd. ·
JSP Consulting Sdn. Bhd. ·
HCL Technologies Canada Inc. ·
HCL Argentina s.a. ·
HCL Mexico S. de R.L. ·
HCL Technologies Romania s.r.l. ·
HCL Hungary Limited ·
HCL Latin America Holding LLC ·
HCL (Brazil) Technologia
da informacao Ltda. ·
HCL Technologies Denmark Apps ·
HCL Technologies Norway AS ·
PT. HCL Technologies Indonesia Limited ·
HCL Technologies Philippines Inc. ·
HCL Technologies South Africa (Proprietary)
Limited ·
HCL Arabia LLC ·
HCL Technologies France (Incorporated w.e.f 7th March, 2011) ·
Filial Espanola De HCL Technologies S.L. (Spain) ·
Anzospan Investments Pty
Limited ·
HCL Investments (UK) Limited (Incorporated w.e.f 9th November, 2011) |
|
|
|
|
Employee Benefit
Trusts : |
·
HCL Technologies Limited Employees Trust ·
Axon Group Plc Employee Benefit Trust No. 3 ·
Axon Group Plc Employee Benefit Trust No. 4 |
|
|
|
|
Jointly
Controlled Entities : |
·
NEC HCL System Technologies Limited, India ·
Axon Puerto Rico Inc. - through subsidiary |
|
|
|
|
Associates : |
·
Statestreet Holding UK
Limited-through subsidiary ·
Statestreet Services
(India) Private Limited- throughsubsidiary |
|
|
|
|
Others
(Significant influence) : |
·
Slocum investments (Delhi) Private Limited ·
HCL Corporation Private Limited [Formerly Guddu Investments (Pondi)
Private Limited] ·
HCL Infosystems Limited ·
HCL Infinet Limited
(Ceased to be related party w.e.f. 10 November
2011) ·
HCL Holding Private Limited ·
HCL Insys Pte Limited, Singapore ·
Digilife Distribution
and Marketing Services Limited. (Formerly HCL Security Limited) |
CAPITAL STRUCTURE
As on 22.10.2012
Authorised Capital : Rs.1500.000
millions
Issued, Subscribed & Paid-up Capital : Rs.1389.863
millions
As on 30.06.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
750000000 |
Equity Shares |
Rs.2/- each |
Rs.1500.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
693283476 |
Equity Shares |
Rs.2/- each |
Rs.1386.600
millions |
|
|
|
|
|
The Company has only
one class of shares referred to as equity shares having a par value of Rs.2/-.
Each holder of equity shares is entitled to one vote per share.
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive the remaining assets of the Company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
Reconciliation of
the number of shares outstanding at the beginning and at the end of the
reporting period
|
Particulars |
As at 30th June, 2012 |
|
|
No. of shares |
Amount (Rs. In millions) |
|
|
Number of shares at the beginning |
688688524 |
1377.400 |
|
Add: Shares issued on exercise of employee stock options |
4594952 |
9.200 |
|
Number of shares
at the end |
693283476 |
1386.600 |
The Company does not have any holding/ ultimate holding company.
Details of
shareholders holding more than 5 % shares in the company:-
|
Particulars |
As at 30th June, 2012 |
|
|
No. of shares |
% holding in the class |
|
|
Equity shares of
Rs.2 each fully paid |
|
|
|
Slocum Investments (Delhi) Private Limited |
311973367 |
45.00% |
|
HCL Holdings Private Limited |
119548908 |
17.24% |
|
HSBC Global Investment Funds A/C HSBC Global Investment Funds
Mauritius Limited |
28214889 |
4.07% |
As per the of the
Company, including its register of shareholders/members and other declarations received
from shareholders regarding beneficial interest, the above shareholding
represents both legal and beneficial ownership of shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1386.600 |
1377.400 |
1357.600 |
|
|
2] Share Application Money pending Allotment |
27.700 |
10.000 |
20.100 |
|
|
3] Reserves & Surplus |
64651.500 |
57204.100 |
47980.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
66065.800 |
58591.500 |
49358.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5256.500 |
8471.100 |
10305.100 |
|
|
2] Unsecured Loans |
1732.200 |
2.900 |
3668.800 |
|
|
TOTAL BORROWING |
6988.700 |
8474.000 |
13973.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
73054.500 |
67065.500 |
63332.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
16137.100 |
12959.300 |
9438.300 |
|
|
Capital work-in-progress |
5495.500 |
5186.900 |
4772.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
32979.500 |
26532.800 |
22332.000 |
|
|
DEFERRED TAX ASSETS |
2371.500 |
1330.600 |
1061.600 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
999.900
|
1249.700
|
120.400
|
|
|
Sundry Debtors |
19924.200
|
16572.600
|
20847.000
|
|
|
Cash & Bank Balances |
10412.000
|
9537.000
|
9894.300
|
|
|
Other Current Assets |
9946.800
|
7582.200
|
4080.300
|
|
|
Loans & Advances |
10503.800
|
9696.900
|
12347.400
|
|
Total
Current Assets |
51786.700
|
44638.400
|
47289.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3803.200
|
3401.600
|
6456.000
|
|
|
Other Current Liabilities |
22334.700
|
14152.500
|
10768.800
|
|
|
Provisions |
9577.900
|
6028.400
|
4336.000
|
|
Total
Current Liabilities |
35715.800
|
23582.500 |
21560.800 |
|
|
Net Current Assets |
16070.900
|
21055.900
|
25728.600
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
73054.500 |
67065.500 |
63332.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
89072.200 |
67944.800 |
50787.600 |
|
|
|
Other Income |
3008.600 |
1662.700 |
1717.700 |
|
|
|
TOTAL |
92080.800 |
69607.500 |
52505.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
2063.600 |
1653.100 |
854.700 |
|
|
|
Employee Benefit Expenses |
39230.600 |
32590.900 |
21876.600 |
|
|
|
Other Expenses |
22675.800 |
18537.100 |
14491.900 |
|
|
|
TOTAL |
63970.000 |
52781.100 |
37223.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION |
28110.800 |
16826.400 |
15282.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
972.700 |
1013.900 |
1013.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX,
DEPRECIATION AND AMORTISATION |
27138.100 |
15812.500 |
14268.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
3530.700 |
2913.700 |
2740.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
23607.400 |
12898.800 |
11528.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
4103.200 |
916.000 |
962.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
19504.200 |
11982.800 |
10565.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
24357.100 |
22609.500 |
19209.700 |
|
|
|
|
|
|
|
|
|
|
LOSS ACQUIRED
UNDER THE SCHEME OF AMALGAMATION |
0.000 |
(98.100) |
0.000 |
|
|
|
|
|
|
|
|
|
|
TRANSFER FROM
DEBENTURE REDEMPTION RESERVE DUE TO REDEMPTION OF DEBENTURE |
1700.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed final dividend [including Rs.2.900 millions (previous year
Rs.3.500 millions) paid for previous year] |
2776.000 |
1380.900 |
681.600 |
|
|
|
Interim dividend |
5529.800 |
3764.000 |
2023.300 |
|
|
|
Corporate dividend tax [including Rs.0.500 million (previous year
Rs.0.600 million) paid for previous year] |
1347.400 |
843.900 |
454.500 |
|
|
|
Transfer to general reserve |
1950.400 |
1198.300 |
1056.600 |
|
|
|
Transfer to debenture redemption reserve |
2100.000 |
2950.000 |
2950.000 |
|
|
BALANCE CARRIED
TO THE B/S |
31857.700 |
24357.100 |
22609.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from Services |
83841.700 |
50569.500 |
49682.400 |
|
|
TOTAL EARNINGS |
83841.700 |
50569.500 |
49682.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
2002.800 |
1930.600 |
1149.100 |
|
|
TOTAL IMPORTS |
2002.800 |
1930.600 |
1149.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
28.23 |
17.53 |
15.68 |
|
|
|
Diluted |
27.72 |
17.18 |
15.33 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2012 (1st
Quarter) |
31.12.2012 (2nd
Quarter) |
|
Net Sales |
|
26967.200 |
27662.200 |
|
Total Expenditure |
|
17530.100 |
17832.000 |
|
PBIDT (Excl OI) |
|
9437.100 |
9830.200 |
|
Other Income |
|
453.500 |
829.300 |
|
Operating Profit |
|
9890.600 |
10659.500 |
|
Interest |
|
228.400 |
196.600 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
9662.200 |
10462.900 |
|
Depreciation |
|
1005.600 |
1038.400 |
|
Profit Before Tax |
|
8656.600 |
9424.500 |
|
Tax |
|
1658.200 |
2177.300 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
6998.400 |
7247.200 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
6998.400 |
7247.200 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
PAT / Total Income |
(%) |
21.18
|
17.21
|
20.12
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
26.50
|
18.98
|
23.36
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
34.76
|
22.39
|
20.32
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.36
|
0.22
|
0.23
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.11
|
0.14
|
0.28
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.45
|
1.89
|
2.19
|
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
|
Unsecured Loans |
30.06.2012 (Rs. in Millions) |
30.06.2011 (Rs. in Millions) |
|
SHORT
TERM BORROWINGS |
|
|
|
Bank overdraft |
22.200 |
2.900 |
|
Loans from related parties |
1710.000 |
0.000 |
|
Total
|
1732.200 |
2.900 |
COMPANY OVERVIEW
The Company is
primarily engaged in providing a range of software services, business process
outsourcing and infrastructure services. The Company was incorporated in India
in November 1991. The Company leverages an extensive offshore infrastructure
and its global network of offices in various countries and professionals to
deliver solutions across select verticals including Financial Services,
Manufacturing (Automotive, Aerospace, Hi-tech and Semi conductor), Telecom,
Retail and CPG , Media publishing and entertainment, Public services, Energy
and utility, Healthcare, Travel, Transport and Logistics.
SCHEME OF
AMALGAMATION
During the
previous year, a scheme of Amalgamation (“Scheme”) under sections 391 to 394 of
the Companies Act, 1956 for amalgamation without issue of shares of HCL Technopark Limited, a wholly owned subsidiary (“Transferor
Company”), held directly, with the Company has been approved by the Hon'ble High Court of Delhi on 16th August, 2010
and is effective from 1st April, 2009. The Transferor Company was
engaged in the business of a developer of facilities for the IT industry. The
amalgamation is expected to channelize synergies and
lead to optimum utilization of available resources and result in greater
economies of scale.
The Company has accounted
for the amalgamation under the 'pooling of interest method' being an
amalgamation in the nature of merger, as prescribed by the Accounting standard
“AS-14”, “Accounting for Amalgamations” as per Accounting Standards notified by
Companies (Accounting Standards) Rules, 2006, (as amended).
In terms of the
Scheme, a shortfall arose representing the aggregate value of the assets
reduced by the aggregate value of the liabilities and balance statement of
profit and loss and reserves of the Transferor Company over the value of inter
se loans and investments and share capital cancelled pursuant to the
amalgamation. This shortfall of Rs.98.100 millions has been adjusted from the
statement of profit and loss. Details are given below:
|
Assets |
Amount
(Rs. in millions) |
|
Land Freehold |
167.600 |
|
Capital work in progress |
945.900 |
|
Cash and bank balances |
2.200 |
|
Other assets |
2.100 |
|
Total |
1117.800 |
|
|
|
|
Liabilities |
|
|
Current liabilities |
204.200 |
|
Total |
204.200 |
|
|
|
|
Net assets
acquired on amalgamation |
913.600 |
|
Transfer of
balances of amalgamated company |
|
|
Less:- |
|
|
Adjustment for cancellation of Company's investment in Transferor
Company |
10.000 |
|
Adjustment of loan given to Transferor company |
1001.700 |
|
Shortfall
arising on amalgamation |
98.100 |
|
|
|
|
Balance
transferred to statement of profit and loss as at 1 July 2010 |
98.100 |
MANAGEMENT
DISCUSSION AND ANALYSIS
Current State of the Indian IT Industry
FY 2012 has been a
good year for the Indian IT-BPO industry, keeping in view the slowdown in
global economic environment and corporate IT spending budgets. As per NASSCOM
estimates, aggregate revenues of IT-BPO industry for the FY12 crossed USD 100
Billion. Aggregate IT software and services revenues (excluding hardware)
reached USD 88 Billion. Export revenue (excluding hardware) reached USD 69
Billion. As a proportion of India's GDP, aggregate sector revenues have grown
from 1.2 % in FY 1998 to an estimated 7.5 % in FY 2012.
The Indian IT
Industry can be broadly analyzed from the dimensions of Verticals, Service
Lines and Geographies.
• Verticals: As
per NASSCOM estimates, amongst the matured verticals such as BFSI,
Manufacturing and Telecom, BFSI still remains dominant with a share of 41.2 %
in total IT-BPO exports. The share of Telecom segment has declined to 19% in
FY12 from 20% in FY11. Emerging verticals like Retail, Healthcare, Media and
Utilities continue to record fast growth.
• Service Lines:
Within exports, IT services segment is fastest growing at 19% over FY 2011 with
export revenue of USD 40 Billion, accounting for 58% of total exports. The BPO
segment is expected to grow by 12% to reach USD 16 Billion in FY 2012.
• Geographies: USA
continues to drive growth in IT-BPO exports with export revenue of 17% in FY
2012. APAC region exhibited fastest growth at nearly 18%.
Subject continues
to outperform the Indian IT-BPO industry. During the year ending June' 2012,
subject's revenues grew by 17% YoY compared to
revenue growth of 14% YoY for Indian IT-BPO industry.
On a three year CAGR basis, subject's revenue grew by 24% whereas the Indian
IT-BPO industry revenues grew by 13% during the same period. On a five year
CAGR, subject's revenue grew by 24.4% as compared to the Indian IT-BPO industry
revenue growth of 16%.
Industry Outlook
The IT-BPO
industry has been the frontrunner of the Indian technology sector by driving
growth for the economy in terms of generating employment, increasing revenues
through service exports and enhancing social lifestyles of the burgeoning
middle class due to increased disposable income. The Indian IT-BPO industry
continues to play a major role in transforming India into a global force to be
reckoned with, and is influencing some of the key technology trends that are
shaping the future of the industry. Some of these trends are:
·
Enterprise Mobility
·
Cloud Computing
·
Business Intelligence
·
Analytics
·
Social Networking
·
Virtualization
Investment in new
technologies will be the key to success for organizations. IT spending on
enterprise and mobility will be a huge market. The market for enterprise
mobility solutions alone is expected to grow to USD 17 Billion by 2015.
Spending on Public Cloud Services is likely to surpass growth of overall IT
spends by almost four times between 2012 and 2015. These emerging technology
trends are expected to increase industry revenues to an estimated USD 225
Billion by 2020, as per NASSCOM.
Drivers for future growth
The Indian IT
industry will continue to redefine and transform itself by establishing new
business and global delivery models and partnerships. Global sourcing will be a
key growth driver, with organizations trying to reduce operational costs,
entering new markets and focusing on innovation. In the competitive business
environment, outsourcing is poised to be a strategic initiative, with many
organizations focusing on leveraging existing technology investments. In
addition, innovation and operational efficiencies will gain considerable
prominence as key competitive differentiators.
Future Outlook
• Indian
Government's expected push of USD 1 Trillion during 2013 – 2017 towards
infrastructure development will be a key growth driver for the Indian IT
Industry.
• Evolution of
mobility and its rapid adoption is going to drive IT spending worldwide.
• Enterprise
Mobility Solutions alone is expected to reach USD 17 Billion by 2015.
• Emerging markets
will be a key growth area for Global IT Outsourcing.
COMPANY PROFILE
A USD 4.2 Billion
global IT services company, Subject is a leading provider of business
transformation, enterprise and custom applications, infrastructure management,
business process outsourcing and engineering services. Subject brings IT and
engineering services expertise under one roof to solve complex business
problems for its clients. Leveraging subject's extensive global offshore
infrastructure and network of offices in 26 countries, it provides holistic,
multi-service delivery across industries like financial services,
manufacturing, consumer services, public services and healthcare.
A micro-vertical
strategy, built on strong domain expertise, ensures that no matter how complex
is a company's business problem, subject can offer a solution that is
sustainable and innovation-driven. The source of subject's success and its
ability to deliver high value to clients even during a turbulent economic
environment has been a combination of technical expertise and a unique
management philosophy that unleashed the innovative thinking of employees
called 'Employees First Customers Second' (EFCS). This philosophy was the
foundation of subject's transformation journey in 2005. Today, the impact of
this unique management philosophy which empowers employees to drive growth has
made subject into one of the fastest growing IT services companies and is being
recognized worldwide.
Through EFCS,
subject empowers employees to innovate and deliver business value by turning
technology into a distinct competitive advantage for its customers.
Increasing
customer impact
• Subject crossed
USD 4 billion in revenue in FY'12
• HCL exceeds USD
1 billion in revenue in Infrastructure Services in FY'12
• Customer addition of USD 100 million+ quintupled in last one year
Service Offerings
Subject believes
in the practice of regularly re-structuring and re-energizing its diversified
portfolio of service offerings. By re-evaluating and realigning this portfolio
from time to time, subject is able to develop a robust business model.
Infrastructure Services Division
Subject's
Infrastructure Services Division (ISD) is the fastest growing service offering
business line and contributes 24.2% to subject's total revenues. The division
manages mission-critical IT environments for global organizations.
HCLT ISD is
increasingly recognized by global organizations as a leader for managing and
transforming enterprises' mission critical IT Infrastructure. HCLT ISD's engagements are multi-year long term relationships
and the renewal rate for existing engagements which come up for rebid is very high. This division has successfully
delivered 70+ complex IT infrastructure architecture and operations
transformations for its customers. HCLT ISD is positioned to address IT
infrastructure requirements through its Cloud Aggregation services for
enterprises to consume hybrid cloud environments. It is also transforming
enterprises through New Generation Enterprise Architecture which includes HCLT ISD's Next Generation Data Center, Next Generation End User
Computing and Next Generation Networking Security Architecture blueprints for
Enterprise IT.
HCLT ISD's key service offerings include End User Computing,
Data Center and Mainframe Services, Integrated Operations Management, Cross
Functional Services, Security and Network and Cloud Computing Services.
HCLT ISD's solutions span major industries including
Manufacturing (Process, Discrete and Hi-Tech), Automotive, Life Sciences,
Healthcare and Pharmaceuticals, Energy (Oil and Gas) and Utilities, Financial
Services, Insurance, Banking, Retail, Travel, Tourism and Logistics, Media, and
Publishing and Entertainment and Telecom.
HCLT ISD provides
infrastructure management services to customers through a robust delivery
network of several service centers across the globe. Infrastructure operations
include the standardized management of globally distributed assets of over 3
million mission critical IT devices; resolving numerous helpdesk contacts while
supporting over 1.2 million business users' needs.
This division has
received its share of accolades:
• One of the
leaders in Magic Quadrant for Desktop Outsourcing Services, North America and
Help Desk Outsourcing Services, North America.
• Outsourcing
Center Awards "HCLT and Teradyne" with Outsourcing Excellence Award
for Best Transition Project.
• Information Week
conferred ValueHonors™ Awards to eight HCLT customers
including Avago Technologies, Cathay Pacific Airways,
Cummins Inc., Electrolux, Old Mutual Wealth Management, Purdue Pharma, Xerox and a Fortune 500 pharmaceutical company.
• Subject has been
recognized as a Leader in Gartner's Magic Quadrant for Data Center Outsourcing
and Infrastructure Utility Services, North America, authored by William Maurer,
David Edward Ackerman, Bryan Britz and Helen Huntley,
published on 20 July 2011.
• ISD has earned
Microsoft's Gold Desktop Competency and has become a services delivery leader
for the Windows operating system and Microsoft Office suites.
• HP recognized
subject as the "Alliance ONE Partner of the Year" in the "HP
Cloud Computing Service Provider of the Year" category (2010-2011).
• The company's
fast growth has prompted several bestselling authors to include the HCLT ISD
case study in their books and research.
• Subject has been
rated Positive in Gartner's MarketScope for Managed
Security Services in Asia/Pacific, authored by Andrew Walls and Rob McMillan,
published on 30 September 2011. Cisco Honored HCL with the Data Center and
Virtualization Partner Award in 2012.
Custom Application Services
Business
differentiation through IT by creating visibility, reducing IT intensity,
operational excellence and distinct focus on transformation makes Custom
Application Services division a game changer at subject. Today subject's
customers look at IT not just as a percentage cost to overall spends but more
on how it can help increase revenues, reduce overall costs and also enable new
business models. The Custom Application Services division boasts of many
examples where the teams have enabled customers to achieve strategic control
while releasing internal IT bandwidth to focus on strategic initiatives with a
partnering approach. This division contributes 32.1% of subject's revenues and
provides services across verticals like financial services, retail and consumer
products, healthcare, insurance, media and publishing, manufacturing, and
public services.
This division uses
IPs, tools, frameworks and industry best practices to
provide differentiated 'change-the-business', 'run-the-business', and 'cross
functional IT' services to customers. By focusing on these three aspects of
customer IT ecosystem, this division has been successful in providing committed
savings on Application Management and increased agility and adoption on
Application Build engagements. In some instances the division has successfully re-engineered
applications to develop platforms to enable customers to grow faster. Other
services within this division include application modernization, migration,
independent verification and validation. With a modular approach to design,
development, testing, and roll-out, subject's ADeX
Practice (Application Development Excellence) leverages best in class
development processes and methodologies along with benchmark tools and
reference architectures, to ensure that client requirements are met with high productivity
and process compliance. The suite of "HCLT Assess-Smart" services
uses a variety of automated tools for measuring quality of applications at
source code level and generates an analysis of existing size and state of
application performance, reliability, maintainability, and security. This helps
architects provide solutions to meet the desired "To Be" state in an
objective manner with enhanced service levels.
The division's
run-the-business approach follows the MASCOT Framework (Managed Appl. Services leading to Continuous Improvement and
Transformation) which is also being implemented across all key Application
Support and Maintenance engagements by the subject's Application Support and
Maintenance [ASM] practice. With 42 key service elements, it aims to deliver
predictable services at a predictable price for large customers and includes a
structured set of key service elements that inter-operates to ensure the
delivery of managed services. Holistically, MASCOT can help unlock customer's
capital which can be deployed into new build projects using ADeX.
This approach is very useful at a time when there is no new spend being put
into build or Change the Business Projects.
To align IT with
business needs, this division provides cross functional services through
collaborative governance, flexible commercial models and certain tools which
provide customers business differentiation through IT. Their flexible
commercial models like onsite, near-shore, offshore facilities, shared delivery
centers assist them to define, realize and sustain business change.
Subject's
value-centric focus keeps it continuously investing in and inventing robust
methodologies, tools and processes and best-of-breed partnerships. Skills are
continuously upgraded within the practice and customers continue to enjoy
faster time-to-market as they leverage subject's extensive research and
development on reusable components and frameworks. Currently, subject is
investing significantly in niche technologies in areas like eCommerce,
Mobility, Cloud and Analytics. Subject firmly believes that employees, along
with customers, bring in the maximum value. In order to continuously empower
employees, subject has invested in the 'Domain Academy' to nurture and
strengthen industry knowledge across verticals.
Engineering and R&D Services
One of the largest
global engineering services providers in the world, subject's Engineering and
R&D Services (ERS) business unit constitutes 18.7% of the company's overall
revenues. HCLT ERS works with some of the most innovative and successful
organizations in the world. With over two decades of experience operating in
complex multi-vendor environments and customer value chains, HCLT ERS is able
to seamlessly integrate into a customer's existing R&D ecosystem. HCLT ERS
offers end-to-end engineering services and solutions in hardware, embedded,
mechanical and software product engineering to industry leaders across industry
verticals like - Aerospace and Defense, Automotive, Consumer Electronics,
Industrial Manufacturing, Medical Devices, Networking and Telecom, Office
Automation, Semiconductor, Servers and Storage, and Software Products. It
successfully collaborates with other innovation partners, captive centers, universities,
industry bodies, and manufacturing partners.
HCLT's ERS division
believes that the product landscape is undergoing a major and fast paced
transformation driven by ever-changing customer needs. User experience and
value-centricity are becoming key differentiators for product companies. Market
leadership is also no longer associated with only patents and product features
but with ecosystem creation and leveraging the right platforms. The division
not only provides core product development services but also aids customers in
creating ecosystem advantages around their products, either through
collaborative strategic services or through HCLT Productized Solutions. This
helps in creating impact which can redefine the core of a client's business called
"Engineering Out-of-the-Box" or EOOTB. This is core to the division's
underlying philosophy.
This division
helps customers reduce time to market by leveraging the Global R&D network.
It also offers output based business models that are aligned to the R&D
goals of the customer. ERS today leverages engineering talent and development
capabilities across North America, EMEA and APAC to deliver complex engineering
solutions.
HCLT's ERS division not
only delivers customer-specific innovation through engineering excellence, but
also offers unique risk-reward models such as joint IP development. For
example, subject has partnered with Cisco, and filed multiple patents in the
field of Mobility, Banking and others. Today, subject is a strategic partner to
key projects at Cisco. The division has executed Faster Product Development
with automated testing processes for world's largest anti-virus company. ERS
has partnered with one of the world's largest IT management software company to
deliver total product development, management and support. It has also
developed two applications "Late Arrival Notification" and "Safe
Arrival Notification" on OpenXC platform for an
American automotive giant.
Clients today
prefer outsourcing to companies that share their long-term vision, have a risk
and rewards business model in place, and have the ability to develop
product-based ecosystems. Towards this, subject is investing heavily in
developing its own IPs and solutions to help clients
impact the overall product ecosystem faster and better. Solutions include a
unified communication platform, a remote diagnostic reusable module, and telematics and test platforms in multiple verticals. Some
key IPs today are: AEGIS (M2M Platform), Agora (HCLT's SaaS platform), Cirrus 2.0
(Microsoft Azure enablement solution), ARGOS (IPV4 to IPV6 migration
framework), Device Mobility Interface Framework, Website Analyzer amongst
others.
Business Services Division
Subject pioneered
third party Business Process Outsourcing industry in India by launching HCLT
Business Services (formerly HCL BPO Services) in 2001. HCLT Business Services
provides 24X7, multi-channel and multi-lingual support in eight European
languages. HCLT Business Services focuses on key industry segments such as
Financial Services, Health Care Services, Telecom, Energy and Utility, Public
Services, Manufacturing, Retail and CPG, Media and Publishing, and Logistics.
In addition to providing vertical industry specific solutions, HCLT Business
Services provides the following cross industry horizontal solutions: Finance
and Accounting Outsourcing, Human Resources Outsourcing, Customer Relationship
Management, Knowledge Process Outsourcing, Technical Support Services and
Supply Chain Management (SCM).
HCLT Business
Services pioneered the multi-country delivery and the platform business model.
One of the most successful global models is IGDM (Integrated Global Delivery
Model) for BPO which reinforces subject's commitment to delivering a homogenous
experience and single service standards across all its delivery centers. With
centers across the world offering uniform international standards of quality
and service delivery capability, it transcends time zones and ensures location
advantage along with language and cultural alignment. IGDM offers the
flexibility to scale up, manage redundancy, and ensure 24/7 optimized
operations process standardization, process knowledge and technology assets.
With over a decade
of industry experience, subject's Business Service Division today pursues a
revolutionary maturity level where a new form of BPO called 'Transformational
BPO' is evolving, which involves Full Process and Multi-Process outsourcing.
Subject leverages its strengths in IT industry to provide customers the
benefits of a complete outsourced experience.
Subject's Next Generation Business Services
• Vertically
aligned strategy with horizontal Centers of Excellence.
• Innovation and
improvement-led solutions with transformation as the 'arrow head'.
• End to end
service offering bringing together people, technology and process.
• Delivering
through Integrated global delivery centers.
• Flexible
business models and value based pricing.
• Collaborative
business partnership approach.
• Delivering from
Employees First Customers Second (EFCS) platform.
This division has
received its share of accolades;
• Subject ranks in
the 'Leaders Category' of IAOP's 2012 Global
Outsourcing 100 Service Providers List.
• Subject won the
award for 'Market Facing Innovation' at the NASSCOM Innovation Awards 2012.
• Subject was
conferred with the following recognitions at the Contact Centre World's Top
Performers Conference 2011.
_ Best in Customer
Service.
_ Best Incentive Scheme.
Subject is listed
as a 'Challenger' in Gartner's report Magic Quadrant for Comprehensive Finance
and Accounting BPO Global.
• Subject won
awards for 'Innovative Recruitment' and for 'Managing Health at work' at the
Asia's Best Employer Brand Awards 2011.
• Subject was
felicitated with the prestigious 'National Best of All Awards' on Economics of
Quality at the QCI-DL Shah National Awards 2011.
• Subject was
conferred with the 'Operational Excellence and Quality' Award at the BPO
Excellence Awards 2010-11.
Enterprise Applications Services
Subject 's Enterprise
Applications Services (EAS) division enables clients to operate from single,
integrated technology platforms to run all aspects of their organizations.
Whether in the cloud, on-demand or on-premise, the HCLT EAS division ensures
all data, transactions and information required to operate best-run businesses
are at the fingertips of company executives. The HCLT EAS division accounts for
over 20.4% of subject's revenues and continues to be a key area of growth.
Strategic
partnerships with SAP, Oracle and Microsoft ensure that subject can make the
latest enterprise technology offerings available to its clients. These
partnerships have enabled subject to build a leading position in moving
enterprise technology onto the mobile platform, allowing employees, managers
and executives to access the processes and information they require in
real-time on a global basis.
HCLT EAS has won
several awards for its Enterprise Mobility Services. iEM,
a mobile application that enables utility customers to take control of their
energy consumption through the Smart Grid, won the 2011 SAP Mobility Showcase
Award at the SAPPHIRE NOW event. mSAM, a mobile
application that drives efficiencies for large and distributed field service
operations, won the 2012 SAP Innovation Challenge for Manufacturing Mobile
Apps. HCLT's EAS will continue to invest in
Enterprise Mobility offering clients a comprehensive range of services from
mobile application development and integration; to mobile application services,
to fully managed mobility including provisioning, hosting, and end-user
support.
HCL AXON continues
to grow from strength to strength with successful client recognitions. HCL AXON
has won several awards within the UK and Europe. This is a great recognition of
achievement in the last year including; a gold winner award of the SAP Quality
Awards 2011 for the new business application category, IT Europa,
European IT Excellence Awards 2012 - Enterprise Transformation Solution of the
Year and the SAP UK and Ireland Run Prouder Partner Award 2012 for Human
Capital Management. The HCL AXON and SAP relationship continues to deliver
value to their customers through industry-focused excellence and orchestrated
innovation through diverse resources.
Subject's client
base is now looking to HCLT EAS as a transformational partner in the Oracle
space. Through HCLT EAS' benefits driven approach to helping clients change
their business, subject is able to focus on business solutions powered by
Oracle technology to drive tangible benefits to the business.
Subject's solution
driven approach with select partners like Microsoft, coupled with a continuous
focus on capability development has helped provide customers with faster, better
and cheaper Microsoft Dynamics CRM solutions. Subject's FinEdgeTM
a CRM banking solution built on the Microsoft Dynamics Platform has been a key
accelerator for their customers. A similar solution accelerator focused in the
Public Sector space has been a driving force for Microsoft Dynamics CRM
adoption for some of their recent customers. This has helped customers leverage
the benefit of subject capabilities and derive value from their investment in
Microsoft Dynamics CRM. Microsoft Dynamics Practice has been adjudged as the
CRM Partner of the Year by Microsoft in the APAC MEA region. HCL AXON's partnership with Microsoft's Business Solutions
division has been instrumental in identifying niche market opportunities to
drive real customer value.
Consequently, the
HCLT EAS division continues to be recognized as a global pioneer in the
enterprise technology market by clients, analysts and industry associations
alike. Organizations are seeking to operate more efficiently, with broader
reach, through more precise business intelligence, and with greater pace. HCLT's EAS division enables it's over 200 clients to do
precisely this.
SUBSIDIARIES / JOINT VENTURES
Joint Venture with
State Street Corporation, USA During the year the Company entered into a joint
venture with
State Street
Corporation, a company incorporated in USA in which the Company holds 49% stake
in the joint venture company through its step down subsidiary in U.K. The
operations of the said joint venture are being carried out in Statestreet HCL Services (India) Private Limited, a company
incorporated under the
Companies Act,
1956.
Joint Venture with Great American Insurance Company
During the year
the Company has entered into a joint venture with Great American Insurance
Company (GAIC).The Joint Venture Company has been incorporated in India titled
“HCL Eagle Limited” in which 92% stake is held by the Company and balance stake
is held by GAIC.
Rationalisation of subsidiaries
During the year,
as a part of the process of restructuring, one company in U.S. titled Capital
Stream Inc. has been merged with HCL America Inc.; one company in Canada viz.
HCL Technologies Canada Inc. has been merged with Axon Solutions (Canada) Inc.
and the holding structure of some of the step down subsidiaries was changed.
Further the business of one company in Malaysia has been transferred to the
other subsidiary in Malaysia and also changed the investment company in Austria
to the operational entity.
Closure of subsidiaries
• As a
rationalization process the Company has undertaken the strike off of its step
down subsidiary in Singapore viz. DSI Financial Solutions Pte.
Limited w.e.f. April 11, 2012.
CHANGES IN CAPITAL STRUCTURE
Issue of shares
under Employees Stock Option Plans During the year ended June 30, 2012 the
Company allotted 4594952 equity shares of Rs.2/- each fully paid up under its
Employees Stock Option Plans. This constitutes 0.66% of the total paid up share
capital of the Company as on June 30, 2012. Issued and Paid-up Share Capital As
on June 30, 2012, the issued and paid-up share capital of the Company was
Rs.1386.567 millions (previous year: Rs.1377.377 millions) comprising 693283476
(previous year:688688524) equity shares of Rs.2/- each fully paid-up.
AWARDS AND RECOGNITIONS
As the Company pursues
excellence relentlessly, the Company is delighted to receive phenomenal share
of recognitions and awards this year, not just from the media, but also from
analysts, governing bodies, academic institutions, partners and even customers.
Some of the key accolades received during the year include:
• The Company has
been ranked in Forbes Asia's prestigious annual listing of the 50 best publicly
traded companies in 'Asia Pacific called Asia Fab 50
companies'. The Company made it to this list for the second consecutive year.
• The Company has
been recognized as a leader in Gartner's Magic Quadrant for Data Center
Outsourcing and Infrastructure Utility Services, North America.
• The Company
bagged 4 awards at the Top Ranking Performers Awards 2011, APAC hosted by
Contact Center World- the Global Association for Contact Center Best Practices
and Networking. The Company won 2 Gold Medals for Best Customer Services and
Best Incentive Scheme, a Silver Medal for Best Recruitment Campaign and a
Bronze Medal for Best Large Contact Centre. The Company won Contact Center
World's Top Ranking Performers Awards for the second consecutive year.
• The Company was felicitated with 3 prestigious recognitions at the
Asia's Best Employer Brand Awards 2011, hosted jointly by World HRD Congress,
Employer Branding Institute and Stars of the Industry Group. The Company won
the awards under 3 categories namely 'HR Professional of the Year', 'Innovation
in Recruitment' and 'Managing Health at Work'.
• The Company has
been awarded the 'Excellence in Education Award' for 2011 by the Life Office
Management
Association, a
premier Educational Institution in US, providing training and certification in
Life and Annuity. This is the 7th time HCL has been bestowed with this Award
- a unique feat
achieved by any Indian IT Company.
• The Institute of
Company Secretaries of India awarded 'Certificate of Recognition' to the
Company for adopting excellent practices in Corporate Governance in the year
2011.
• The Company has
been felicitated with the prestigious Nasscom
Innovation Award 2012 for 'Market Facing Innovation'. The award was given in
recognition of HCL's distinctive external facing
business models and processes that make an effective impact on clients.
• The Company has
been conferred with the prestigious Asian Human Capital Summit 2011 award by
the Ministry of Manpower Singapore and INSEAD for its innovative and impactful people practices centered on it Employees First,
Customer Second Philosophy.
FIXED ASSETS
Tangible Assets
·
Freehold land
·
Leasehold land
·
Buildings
·
Plant
and Machinery
·
Computers
·
Furniture
and Fittings
·
Vehicles
Intangible Assets
·
Goodwill
·
Software
WEBSITE DETAILS:
NEWS:
WHY IS HCL TECH'S PE
MULTIPLE NOT REFLECTING GOOD EARNINGS?
February 20, 2013
HCL Technologies has risen over
60 percent in the last one year, and its EBIT (earnings before interest, taxes)
margins are up 400bps since Jan 2012, but interestingly the P/E multiple has
not kept pace with the EPS (earning per share) upgrades.
"Within the P = P/E*EPS equation, we note that robust FY13 EPS upgrade of 40 percent has alone accounted for 80 percent of the stock move with valuation
(P/E) upgrade contributing just 11 percent (or just 20 percent of the 12-month stock move)," noted JP Morgan analysts Viju George and Amit Sharma.
Despite the strong growth at HCL Tech, the recent management changes are clearly among the key concerns on the street.
The company last month elevated Anant Gupta, its COO and President to the post of CEO, while industry veteran Vineet Nayar will stay on as vice chairman and joint MD till July and VC there after.
Gupta has played a key role in driving growth in the infrastructure management vertical, but the market is more concerned about the software services business, which, compared to infra management has rather had a muted growth, the JP Morgan analysts point out.
Further more, how well the company performs under a new CEO will also be an important marker as this shapes P/E multiples one year out, George and Sharma say.
The analysts say that there is also a section of the street "not fully assured of the soundness of HCL Tech's operating practices," which might also partly explain an inability of the stock to achieve P/E breakout. According to a media report last month, several analysts and executives at rival IT firms had raised concerns on alleged "unethical practices" at HCL’s European operations. HCL Tech has denied any wrongdoings.
"Our view is HCL Tech is more aggressive in pricing and more flexible in contract restructuring. But this reflects in its margins/ROCE/ROE profile and thus is ideally duly factored in its valuations," they said.
JP Morgan has an "overweight" rating on HCL Tech with a target price of Rs.775. Its 12-month forward multiple remains at 12-13 times.
HCL Tech shares were up 1 percent at Rs.712.70 on NSE in morning trade.
BUY HCL TECH; TARGET
OF RS 840: NIRMAL BANG
February 21, 2013
Nirmal Bang is bullish on HCL Technologies (HCLT) and has recommended buy rating on the stock with a target price of Rs.840 in its February 21, 2013 research report.
“RDA, a key client of HCLTech has filed for Chapter 11 bankruptcy with the US Bankruptcy Court in the southern district of New York. RDA, owner of the popular magazine, Reader’s Digest, is reeling under a high debt burden and will restructure it to finally emerge with a debt of around US$100mn, around US$465mn lower. It should be noted that this is the second time since August 2009 that RDA has filed for bankruptcy. RDA’s international operations are not part of the filing.”
“RDA had signed a seven-year, US$350mn deal with HCLT in March 2009, encompassing application development and infrastructure management services spanning 45 countries across North America, Latin America and Asia. Thus, annualised deal revenue amounts to US$50mn. In our view, an important event to watch out for is RDA’s emergence from bankruptcy. In our view, a worstcase scenario would be RDA shutting down, in which case HCLT would lose the contract and write down receivables to the tune of US$4.3mn. There could also be uncertainty regarding RDA’s IT strategy after emerging out of bankruptcy, in which case HCLT’s revenue from RDA could also decline.”
In a worst case scenario of HCLT losing the RDA contract, we expect revenue impact of 0.9%, EBITDA margin impact of 50bps and EPS impact of 2.5% in FY14E. Currently, in the wake of stronger-than-peer revenue growth, healthy EPS CAGR of 28.8% over FY12-FY14E and reasonable valuation at 12.2 FY14E EPS, we have retained our buy rating on HCLT with a target price of Rs.840,” says Nirmal Bang research report.
Institutional holding more than 40% in Indian cos
EXPECT HCL TECH TO
HIT RS.750 IN SHORT TERM: BALA
February 19, 2013
According to technical expert,
Jai Bala of cashthechaos,
it is better to buy HCL Tech closer to Rs.670-675. He expects the stock to hit
about Rs.750 in short-term.
Bala told CNBC-TV18, “If you look at the move of HCL Tech from the July lows to January highs, technically it says that there is one more leg on the upside pending for the stock. The decline from the January highs to Rs.750 looks like a perfect correction.”
“It is better to buy this stock closer to Rs.670-675 and expect the stock to
hit about Rs.750 in the short-term, Bala added.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.40 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.