q3 fy08 ir presentation - ace analyser meet/100179_20071231.pdf2007/12/31 · • pos (retail)...

India's Largest Distribution & Retail NetworkIndia's Largest Distribution & Retail Network

Training for "Real World" Learning experienceTraining for "Real World" Learning experience

India's Leading System Integration OrganizationIndia's Leading System Integration Organization

India's Largest Direct Sales & Services OrganizationIndia's Largest Direct Sales & Services Organization

Investor Presentation

DisclaimerDisclaimer

This may contain "forward-looking" information including statements concerning the HCL's outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those that may be inferred to be expressed in, or implied by, the statements. HCL assumes no obligation to publicly update or revise these forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.

Although considerable care has been taken in preparing and maintaining the information and material contained herein, HCL makes no representation nor gives any warranty as to the currency, completeness, accuracy or correctness of any of the elements contained herein. Facts and information contained herein are believed to be accurate at the time of posting. However, information may be superseded by subsequent disclosure, and changes may be made at any time without prior notice. HCL shall not be responsible for, or liable in respect of, any damage, direct or indirect, or of any nature whatsoever, resulting from the use of the information contained herein.

Legal Notice

Employees55,000

HCL Technologies Financials* HCL Infosystems

Operations spanning 18 countries

Global Presence

USA, UK, Poland, Singapore and India

Delivery Facilities

HCL - Snapshot

Engineering & R&D, Enterprise & Custom

Applications, Infrastructure Management &

BPO Services for Global Markets

Hardware, System Integration& ICT Distribution

for the Indian Market

Offices in 170 cities & 360 service centers

India Presence

50,000 outlets in 5,000 towns

Sales & Distribution Network

Total Revenues - $ 4.8 BnEBITDA - $ 496 MnNet Income - $ 447 MnMarket Cap - $ 4.9 Bn

*Trailing Twelve Months (TTM) as of 31st March, 2008

India’s Largest Distribution & Retail

Network ( 3000 franchise, 65k+ retail

outlets)

India’s Largest Direct Sales Organization

HCL Business OfferingsHCL Business Offerings

• Computing & Storage

• Networking & Security

• Telecom

• Imaging Solutions

• Enterprise Services

• POS (Retail) Solutions

• Computing

• Nokia GSM Mobile Handsets & Nokia Care

Digilife ProductsManufacturing

ISO-14001,9001; ISO-13485-2003; TS 16949-2002; TUV - Accredited

India’s Largest Service Support NetworkMulti-location Project Services, Network Security & Management Services, FM

Services, Multi Vendor & System Integration Support, IT/BPO Outsourcing Services, Copy & Printing Services, Spot Maintenance Services, Document Management

Services & Branch Rollout Solutions

Computer Systems

PCs, Laptops, Workstations, Thin Client, Peripherals, Racks, Kiosk, Software, Servers, Blade Server, Storage, Backup Solutions, Active & Passive Networking,

Equipments, Security Solutions, Enterprise VPN, Hosting, ASP Services, Bandwidth Boosters

Imaging Products

Digital Copiers, Multimedia Projectors, Plasma / LCD Display Panels Audio Visual System Integration, Laser Printers (Mono / Color)

Telecom Products

IP Phones, TDM / IP PBX, Video Conferencing, Call Centre Solutions, TV Broadcasting, FM Broadcasting, GPS Solutions

Complete ICT Solutions from HCLSI, Roll Out & Infra Management

Strong Multi Technology Product Business

Direct sales force & direct service capability in Enterprise Solutions

Tax-Friendly Manufacturing facilities

Multi Technology System Integration Capability

Extensive distribution reach across channels and organized retail

Strong customer focus with good repeat business, high customer satisfaction & loyalty

5,900+ employees as on March 31st, 2008

100% quarterly dividend in last 12 quarters

Key Highlights

Computer Systems & Other Related products – 25.7 %

Internet & Related Services – 0.3 %

Telecommunication & Office Automation –74.0 %

Financial Profile9M FY’08 Revenue Breakup

SnapshotSnapshot

Dividend expressed as % of fully paid up Equity shares of Rs.2- each

Dividend Rate (%)

100% 100% 100% 100% 100% 100% 100%100% 100% 100% 100% 100%

Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08

15222877

9050 9049

FY 03 FY 04 FY 05 FY 06 FY 07

Profit After Tax

175228

280316

FY 03 FY 04 FY 05 FY 06 FY 07

11455 11855

FY 03 FY 04 FY 05 FY 06 FY 07

Financial TrendsFinancial Trends

CAGR 45% CAGR 36%

Consolidated Revenue Consolidated PAT

19712381

FY 03 FY 04 FY 05 FY 06 FY 07

Computer Systems Revenue

CAGR 26%

Telecom & OA Revenue

CAGR 56%

Key AlliancesKey Alliances

Computing

Digital Lifestyle Products

Telecommunication

Office Automation

IT Infrastructure

Software

PEGATRON

Enterprise Business OverviewEnterprise Business Overview

Evolution of Convergence: Analog Devices -> Digital Devices -> Compute Engine + Software -> Networking of Devices -> Convergence of technologies ->

Networked Control & Management“At the heart of every ICT box is a Computer”

Single Window ICT

Solutions Provider

Largest B2B Direct Services Support

Largest B2B Direct Sales

HCL Enterprise Addressal

Office AutomationOffice AutomationOffice Automation

B2B / Enterprise AddressalB2B / Enterprise Addressal

Computer SystemsComputer SystemsComputer Systems

PAN INDIA

PRESENCE

HCL REACH

170 Offices 360+ Direct Service Locations

2800+ Technically Qualified Manpower

104 Service Locations

225 Imaging Channel Partners

101 Consumable Channel Partners

24 Telecom Channel Partners

23 Sales Offices

B2B Market ShareB2B Market Share

Commercial DesktopsCommercial DesktopsCommercial Desktops

Commercial LaptopsCommercial LaptopsCommercial Laptops

Source: IDC

Calender Year 2007

Other Branded20.8%

Lenovo16.4%

Acer11.8%

Toshiba6.9%

HP34.7%

Unbranded3.0%

HCL6.4%

Calender Year 2007

HP17.0%

IBM/ Lenovo9.7%

Dell9.4%

Wipro5.1%

Other Branded17.4%

Unbranded24.1%

HCL17.4%

Consumer Business OverviewConsumer Business Overview

CONSUMER CARE

TECHNICAL SUPPORT

TRADE PRICEPROTECTION REPLACEMENT DEMAND

NEW PRODUCT INTRO / Above The Line Activities

PRICING / TRADE MARKETING SCHEMES

TRAINING / POS SUPPORT

RECEIVABLES

Procurement Warehousing Distribution Retail Placement

Sale to endCustomer

Post sales service

INVENTORY MGMT.

HCL as a Value added distributorHCL as a Value HCL as a Value

added distributoradded distributorPARTNER SELECTION

& MANAGEMENTMARKET HYGIENE &

RETAIL AUDIT

Managing the Distribution Value Chain

B2C / Consumer AddressalB2C / Consumer Addressal

5 National Distributors

135 Regional Distributors

65 HCL Service Points

65000+ Dealers / Resellers spread over 7000 towns &

villages 97+ Redistribution Stockists

HCL REACH

3000+ Retail Outlets/Resellers

62 Digilife Stores ; 5 company own

Pan India Service Network in 30 Locations

Distribution and MarketingDistribution and MarketingDistribution and Marketing

Computer SystemsComputer SystemsComputer Systems

PAN INDIA

PRESENCE

Large Organised Retail

relationship

B2C Market ShareB2C Market Share

Consumer DesktopsConsumer DesktopsConsumer Desktops

Consumer LaptopsConsumer LaptopsConsumer Laptops

Calender Year 2007

HP14.1%

LG Electronics6.2%Zenith

HCL11.3%

Unbranded50.5%

IBM/ Lenovo5.2%

Other Branded7.3% Calender Year 2007

Other Branded20.6%

Lenovo15.1%

Acer7.2%

Toshiba4.5%

HP41.3%

Unbranded1.8%

HCL9.6%

Source: IDC

Source: ORG-GFK, Feb-08

HCL - NokiaHCL - Nokia

Nokia - Market Leader with over 71% share

Source: COAI

GSM Net Subscriber additions

6.1 6.25.9 6.1

6.36.0 6.1

Apr'07 May'07 Jun'07 Jul'07 Aug'07 Sep'07 Oct'07 Nov'07 Dec'07 Jan'08 Feb'08 Mar'08

Others8.9%

Nokia71.2%

Samsung5.7%

Motorola6.6%

Sony Ericsson

A Glimpse of HCL’s Brand Enhancement InitiativeA Glimpse of HCL’s Brand Enhancement Initiative

Fearless campaignlaunched

Talking NumbersCampaign

April 2005 January 2006 April 2007

Touch TechnologyCampaign

October 2007

LeaptopCampaign

HCL of today... Transforming…HCL of today... Transforming…

Storage Rs 1508, 2%

Peripherals Rs 7108, 10%

Networking Rs 4388, 6%

Other HW Rs 10372, 15%

Clients Rs 19745, 28%

Servers Rs 3098, 4%

Packaged software Rs 7405, 10%

Services Rs 17207, 24%

Domestic IT Market in India – CY 2007Domestic IT Market in India – CY 2007

Other HW includes Add-on (Computing & Peripherals) Products, IT Consumables, Training, other Networking Equipment

Total Domestic IT Market – Rs.70,832 Crores

BFSI Rs 13579, 19%

E-Governance Rs 9035, 13%

Telecom Rs 7631, 11%

Manufacturing Rs 9604, 14%

IT/ITeS Rs 7936, 11%

Others Rs 19359, 27%

Retail Rs 1024, 1%

Utility Rs 907, 1%

Healthcare Rs 780, 1% Media &

Entertainment Rs 977, 1%

Expected Market Size (IT Spending in India) Segment wise Projection for CY 2007

109,64595,64783,06870,832

2010200920082007Fig in Rs Crores

Productwise Breakup

Segment wise Breakup

Source: IDC

All Figures in Rs Crore

Transforming HCL Services ….Transforming HCL Services ….

2800+ Engineers 360 + Locations Support Base of

1 Million Units

Solid foundation of Award winning enterprise product services

NewInitiatives

&Enhancements

NewInitiatives

&Enhancements

Remote Management

Services

FacilitiesManagement

TrainingServices Total Outsourcing

Branch Roll Out Services

NEWNEW

HCL India’s Leading ICT System IntegratorHCL India’s Leading ICT System Integrator

Multi Technology Product Capability

Maturing SI Practice

Pan-India SI Infrastructure

Telecom E-Gov BFSI Power

Media & Entertain-

mentRetail Health Airports/

PortsRailways

NEW NEW NEW NEW NEW

SI Vertical : TelecomSI Vertical : Telecom

Total IT Spending :(Hardware + Services + Packaged Software)

The Growth HCL Focus Areas

Some Wins

• Billing & Customer Care Solution• IT Infrastructure – WAN, Data Centre,

Operations Management• IP Telephony Network• Messaging Solutions• Multiplay Information (Broadband for

data, voice, video)• NGN Networks

2006 2010 2012

Broadband Service for Millions of Subscribers PAN India Latest Technology : IP & MPLS Network

Turnkey Solution : Design -> Supply -> Installation & CommissioningAcceptance Test -> Operation & Maintenance - > Upgradation/Migration

On going Managed Services : 24 X 7 X 365NMS & PMS

National SI for Enterprise Subscribers of Equipment & Services of this network

National Internet Backbone : One

of its kind in World

Value in INR Crore

A Case Study

SI Vertical : Telecom – Some WinsSI Vertical : Telecom – Some Wins

Defense Network: One of the World’s

Largest VOIP Defense Network

Inter Operator Billing & Accounting

System

Convergent Billing Solutions

Some Wins

PAN India with over 1 Lakh Information Connecting Points

Data, Voice, Video, Messaging with Work Flow

Latest Technology : VOIP over MLPS, High Security, Explosion Proof Data Centre

On going Managed Services for Data Centre Operations

Total Outsourced Telecom Project for Interconnect Billing

More than 1 Billion Transactions per Month

Convergent Billing of Multiple Telecom Services for 20 Million Subscribers

On going managed Services for Data Centre Operations

A Case Study

HCL Focus Areas

• Basic H/w & Networking.• Advance Networking• Server• Security• CCNA • MCSE• RHCE• Notebooks

HCL Advanced Training and Career Development BusinessHCL Advanced Training and Career Development Business

HCL 31 Years of experience in creating Hardware,

Software and Networking Professionals Now launched as a line of

Business. It will help bridge skilled

manpower gap which exists in the IT industry

PAN India Centres with 9000+ Students already Operational

The GrowthValue in INR crore

“Faculty” drawn from HCL & Industry

Focus on “REAL WORLD” practical training2100

2006 2010 2012

* Source : Industry Estimates

HCL Hyderabad Facility

RetailRetail

HCL Digi-life• MBO designed to offer a total digital lifestyle product portfolio with super-differentiated experience delivery & support• 62 stores across 48 cities

Gurgaon Store Mumbai StoreUdaipur Store

Services – DigiCareServices Services –– DigiCareDigiCare

STB Repair set up-17 service locations across India- 30 pick-up locations

HCL DigiCare - Delhi

WorldSpace Install Team - Bangalore

• HCL DigiCare is a multi-brand / multi product service outlet

• These outlets would be equipped to handle walk-in customer and would have TRC set up to take care of L1/ L2 repairs as required

• HCL DigiCare is a multi-brand / multi product service outlet

• These outlets would be equipped to handle walk-in customer and would have TRC set up to take care of L1/ L2 repairs as required

Music & ImagingMp3 PlayersMusic AccessoriesSatellite Radio Photography Accessories

TelecomGSM Mobile DevicesAccessories

Personal ComputingLaptopsSmart-Phones / PDAAccessories & Memory

Future OpportunitiesGamingNavigationMobile CommerceVoIP DevicesDTH & CAS

Digital lifestyle opportunity

The digital lifestyle opportunity…The digital lifestyle opportunity…

• All values in INR Crores.• Based on IDC Estimates.• Duty reduction could have implication on above estimation.

13,0009,0005,500Cell Phones (CDMA)

94,57162,65432,424Total

28,57118,0527,277Laptops

3,5002,000800Accessories (Mobile & MP3)

2,5001,800600MP3 Devices

40,00028,000Cell Phones (GSM)

7,0003,8021,247Digital Cameras

201220102007

13,0005,500Cell Phones (CDMA)

7,277Laptops

Accessories (Mobile & MP3)

MP3 Devices

40,00028,00017,000Cell Phones (GSM)

1,247Digital Cameras

201220102007INR CroresINR CroresINR Crores

India’s Largest Distribution & Retail Network (62 DLS, 3000

franchise, 65k+ retail outlets)

India’s Largest Direct Sales Organization

The HCL of Today…. Transforming…..The HCL of Today…. Transforming…..

• Computing & Storage

• Networking & Security

• Telecom

• Imaging Solutions

• Enterprise Services

• POS (Retail) Solutions

• Computing DesktopsLaptopsImaging &

Printing Solutions

HCL Digilife ProductsHCL Laptops &

DesktopsNokiaKodakAppleKingstonPlantronicsToshibaHitachiInfocusMicrosoft

ManufacturingISO-14001,9001; ISO-13485-2003; TS 16949-2002; TUV - Accredited

India’s Largest Service Support NetworkMulti-location Project Services, Network Security & Management Services, FM Services, Multi

Vendor & System Integration Support, IT/BPO Outsourcing Services, Copy & Printing Services, Spot Maintenance Services, Document Management Services & Branch Rollout

Solutions

Telecom E-Gov BFSI Power

Media & Ent.

Computer Systems : PCs, Laptops, Workstations, Thin Client, Peripherals, Racks, Kiosk, Software, Servers,

Blade Server, Storage, Backup Solutions, Active & Passive Networking, Equipments, Security Solutions, Enterprise VPN, Hosting, ASP Services, Bandwidth Boosters

Imaging Products:Digital Copiers, Multimedia Projectors, Plasma / LCD Display Panels Audio Visual System

Integration, Laser Printers (Mono / Color),Telecom Products:

IP Phones, TDM / IP PBX, Video Conferencing, Call Centre Solutions, TV Broadcasting, FM Broadcasting, GPS Solutions

Complete ICT Solutions from HCL

ICT Training & Education

Retail Health Airports/Ports

Railways

India’s Leading System Integration Organization

NEW NEW NEW NEW NEW

SI, Roll Out & Infra Management

Current Financial Trends

Profitability HighlightsProfitability Highlights

Revenue at Rs. 3017 crores.

PBT at Rs. 113 crores.

PAT at Rs. 81 crores.

EPS at Rs. 4.8 per share.

100% dividend declared. 12th consecutive 100% quarterly dividend.

Revenues PBT

2969 29543108 3127

33053017

OND 06 JFM 07 AMJ 07 JAS 07 OND 07 JFM 08

105 107124

106116 113

3Q FY083Q FY08

Dividend expressed as % of fully paid up Equity shares of Rs.2- each

Segment HighlightsSegment Highlights

Computer Systems Business

Revenue at Rs. 841 crores, up 16% Y-o-Y.

PBIT at Rs. 47 crores, up 10% Y-o-Y.

Revenues

653724

844909

841761

475261

3Q FY083Q FY08

Revenues PBIT

Segment HighlightsSegment Highlights

21842309 2226 22592366 2395

6269 74

Telecommunication & Office Automation Business

Revenue at Rs. 2184 crores.

PBIT at Rs. 82 crores.

3Q FY083Q FY08

Financial ResultsFinancial ResultsRs crores

3Q FY083Q FY08

Rs crores

Segment ResultsSegment Results 3Q FY083Q FY08

Segment Results contd……..Segment Results contd……..Rs crores

3Q FY083Q FY08

AnnexureSystem Integration

SI Vertical : e-GovernanceSI Vertical : e-Governance

•Data as per IDC report on “Overall Trends in IT Spending in India by Industry Verticals 2006-2010”. 60% of total spend of e-Governance + Education

The Growth

HCL Focus Areas

Some Wins

• E-Procurement • Smart Card Solutions• Document Management System• Datacenter Solutions• IT Infrastructure Architecture Design, Rollout & Maintenance.• SWAN Projects

Value in INR Crore

Total expected spending in next five years (2007-2012) :Rs. 47,240* Crores

2006 2010 2012

“Contributing in almost every e-governance Project in India”

- Citizen Interface - Postal Services- Panchayati Raj - Agri Net - NGO Projects

- PAWAN - Land Records- Crime Control- Taxes- Treasuries- Education

SI Vertical : BFSISI Vertical : BFSI

• Financial Inclusion• Cheque Truncation• Cash Management• Anti-Money Laundering• Treasury Solutions• Remittance Solutions• Form Processing• Document Management Solutions• Business Intelligence• Risk Management Solutions• Information Lifecycle Management• Data Centre design & Implementation• Branch Rollout

Data as per IDC report on “Overall Trends in IT Spending in India by Industry Verticals 2006-2010”

The Growth

Some Wins

1923623275

2006 2010 2012

• Cheque Truncation in 6 PSU Banks and Service Offering in Co.Op Banks

• Treasury Solution in largest PSU Bank of India and its associates

• Branch Roll Out in Prestigious Financial Credit Co and Pvt Bank

HCL Focus AreasValue in INR Crore

SI Vertical : PowerSI Vertical : Power

* Data as per IDC report on “Overall Trends in IT Spending in India by Industry Verticals 2006-2010”.

The Growth

• Subdivision Automation• Demand Side Management• Supply Side Management• Sub Station Automation• SCADA

In addition there are many adjacent technology areas being explored.

Some Early Wins already in Place :Two Projects from Utilities in North Indian States

2006 2010 2012

HCL Focus Areas

Some Early Wins

Value in INR Crore

SI Vertical : Media & EntertainmentSI Vertical : Media & Entertainment

The Growth

• Content Creation Systems• Content Aggregation Systems• Automation & Archival Systems• Play-out & Transmission Systems• FM Radio Design, Erection,

Implementation & Roll-out• TV Broadcasting including transmission

• 11 Nos Commercial FM Station Roll Out• Community Radio at leading Research Institute at

Bhopal• TV Broadcast Channel Set Up at Education Institute • Broadcasting Studios Set up at Educational Institutes

Some Early Wins

* Data as per IDC report on “Overall Trends in IT Spending in India by Industry Verticals 2006-2010”** Industry Estimates

902 150

18001417

30002600

3300 3300

2006 2010 2012

Total IT Spending* FM Studios ** TV Broadcast **

SI Vertical : RetailSI Vertical : Retail

• Front-end POS Billing Solution• AIDC- Automated Identification & Data

capture : Scanning & Printing• RF band Wireless Technology• Digital Signage• Q Bursting• Warehouse Solution• Small Form Factor Printing Solution

*Data as per IDC report on “Overall Trends in IT Spending in India by Industry Verticals 2006-2010”

The Growth

2006 2010 2012

New Venture from HCL

• Relationships with Top 30-40 Retail Organizations already in Place with unique product value proposition of HCL

SI Vertical : HealthSI Vertical : Health

The Growth

• Hospital Information Systems• Picture Archival & Control Systems• Tele Medicine

2006 2010 2012

Early Wins : Ministry of Health, Food & Drug Labs

Computerization

SI Vertical : Airports/PortsSI Vertical : Airports/Ports

Total IT + Adjacent IT Spending * :

The Growth

• CCTV & Surveillance, Perimeter Security

• IT Security• Control Centres• Networking• Mobile Computing• Fuel Farm Management• Automatic Fare Collections

Early Wins in Two Airport Projects

HCL Focus Areas

Value in INR Crore

2006 2010 2012

(H/W + Services + Packaged Software)

SI Vertical : RailwaysSI Vertical : Railways

The Growth

• eProcurement• Building up capability in

– Passenger Information System– Automatic Train Controls– Signaling– SCADA Solution

• In addition there are many adjacent technology areas being explored500 3000

2006 2010 2012

• Existing customer of HCL for Hardware Infrastructure requirement all over India.

• Early win of E-procurement Solution.

q3 fy08 ir presentation - ace analyser meet/100179_20071231.pdf2007/12/31 · • pos (retail)...

Documents

user’s guide for nokia...

ოტოლარინგოლოგია - gfma.ge...

nokia bell labs• michel.le_pallec@nokia-bell-labs.com •...

nokia 5800 xpressmusic...

roaming guard · xpressmusic, nokia 5800 xpressmusic, nokia...

die commander deluxe collection....nokia c 3 nokia c 6 nokia...

panache digilife limited - national stock exchange...

wps.prenhall.comwps.prenhall.com/.../ism/hibbeler_dynamics_ism_ch17.pdf2007-05-22 ·...

pk301+ · 3.5mm phone connection kit – compatible with...

java sockets 101 - digilife . be

buku petunjuk nokia 6255 -...

guía de usuario del nokia 5800...

technologies to develop on nokia platforms e61i nokia e62...

simplifying healthcare through technology · delivering...

nokia cellphone pricelist philippines … cellphone.pdf ·...

navicore personal - marinea erikoisliike ja verkkokauppa ·...

latitudeassistuser guide (all nokia...

user guide for nokia 2600 - specialty answering...

Новинки сервисов nokia - nokia Карты

nokia 111 / nokia 113 user guide