IT hardware solutions firm HCL Infosystems reported a standalone net loss of Rs 40.25 crore for the quarter ended June 30, 2013 mainly due to loss from hardware business and increase in finance cost.
The firm had posted a net profit of Rs 2.55 crore in the year-ago period, the company said in a BSE filing yesterday.
Commenting on the performance, 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.
"The present economic environment provides for a far more muted growth rate and profitability in comparison to the heydays that the industry had witnessed a few years back," he said.
HCL's, which deals in computer products, registered widening of loss at Rs 77.32 crore in its hardware products and solution business during the reported quarter from loss of Rs 38.13 crore in the same period a year ago.
"We are also carrying a healthy order book of Rs 4,000 crore for our systems integration business as we enter into the next financial year. 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."
The company's finance cost increased by about 58 per cent to around Rs 38 crore during the reported quarter from Rs 24 crore approximately which it incurred during the corresponding period a year ago.
Its standalone net sales fell by 22.7 per cent to Rs 1,969.84 crore in the April-June quarter this year against Rs 2,548.50 crore in the same quarter of previous year.
For its financial year ended June 30, 2013, HCL posted consolidated net loss of around Rs 80 crore where as the company had made profit of Rs 72 crore a year ago.
The consolidated net sales of the company during the period fell to Rs 9,244.08 crore against Rs 10,754.05 crore at end of 2011-12 fiscal.
Shares of the company on Wednesday rose by 0.60 per cent to settle at Rs 25.35 apiece from previous close at BSE.