Annual Report 2011-2012 - HCL Infosystems

ANNUAL REPORT 2011-12
Personnel Costs
Personnel costs increased marginally from ` 487 crores in FY 2011 to ` 489 crores in FY 2012.
Administration, Selling and Other Expenses
Administration, Selling & Other expenses increased from ` 426
crores in FY 2011 to ` 461 crores in FY 2012. The increase was
mainly on account of provisions due to delay in customer
receipts ` 29 crores and increase in consultancy charges.
Better optimisation of resources during the year enabled the
company to control its spend on infrastructure and selling
expenses in comparison to previous year.
` crores
Particulars FY 12 FY 11
Administration Expenses 213 226
Selling & Distribution Expenses 56 71
Provision for Doubtful Debts &
Other current assets 66 37
Legal, Professional & Consultancy
Charges 78 45
Others 48 47
Total 461 426
Depreciation
Depreciation increased from ` 38 crores in FY 2011 to ` 46 crores in FY 2012, due to increase in Fixed Asset base.
Other Income
Other Income In FY 2012 was ` 127 crores as against ` 85 crores
in FY 2011.
Income from Lease rentals increased by ` 15 crores during the
year.
Finance Costs
Finance costs in FY 2012 were ` 85 crores as against ` 79 crores
in FY 2011. The increase in finance cost was mainly due to
increase in the average interest rates and incremental
borrowings.
Exchange Differences
` crores
Particulars FY 12 FY 11
Investment Income 49 41
Operating Income 18 20
Income from Lease rentals 28 13
Gain on Sale of Infinet 26
Others 6 11
Total 127 85
The Company uses foreign exchange forward contracts and options to mitigate the risk of movements in foreign exchange rates
associated with payables and forecasted transactions in US Dollars. However, steep depreciation in Indian rupee against US
Dollar resulted in Foreign exchange loss of ` 66 crores during the year as compared to a gain of ` 10 crores previous year.
Unrealised exchange loss accounted for ` 34 crores during current year as against unrealised exchange gain of ` 4 crores in
previous year.
Pursuant to notification u/s 211(3C) of the Companies Act , 1956 the Company has deferred exchange loss of ` 11 crores arising
on translation of foreign currency items having a term of 12 months or more which will be amortised over the period of the item.
Profit before Tax
Profit before Tax in FY 2012 was ` 84 crores as against ` 229 crores in the previous year. Lower profitability was primarily due to
differential foreign exchange loss of ` 76 crores.
Tax Expense
The provision for current and deferred tax for the year was ` 14 crores.
Profit after Tax
Profit after Tax and Minority interest for FY 2012 was ` 72 crores as against ` 168 crores in FY 2011.
Earnings per Share
Basic EPS for FY 2012 was ` 3.2 per share as against ` 7.7 per share in FY 2011.
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