HCL Infosystems Ltd — Earnings Release 2024

May 22, 2024

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22[nd] May, 2024

To

The General Manager The Vice President BSE Limited Department of Corporate Relations Sir Phiroze Jeejeebhoy Towers Listing Department Dalal Street The National Stock Exchange of India Limited Fort Exchange Plaza Mumbai 400 001 Bandra Kurla Complex Bandra (East) Mumbai 400 051

Sub: Press Release

Symbol: NSE : HCL-INSYS BSE (For Physical Form) : 179 BSE (For Demat Form) : 500179

Dear Sirs,

We are forwarding a copy of the press release being made by HCL Infosystems Limited on the Audited Financial Results of the Company for the quarter/ financial year ended 31[st] March, 2024.

Please take this on record.

Very Truly Yours,

For HCL Infosystems Limited

Digitally signed KOMAL by KOMAL BATHLA BATHLA Date: 2024.05.22 16:53:35 +05'30'

Komal Bathla Company Secretary & Compliance Officer Membership No. A41455

Encl: As above.

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HCL Infosystems registers Rs. 3,217.34 Lakh revenue with operating loss of Rs. 2,777.96 Lakh in FY23

May 22, 2024, New Delhi

FY24 Business Highlights:

• FY24 revenue was Rs. 3,217.34 Lakh

• Systems Integration and Solutions business reported revenue of Rs. 2,765.77 Lakh

• Loss Before Tax and exceptional items was Rs. 2,777.96 Lakh

• Exceptional non-recurring gain during this year was on account of:

• Profit on sale of properties of Rs. 1,196.36 Lakh.

• Loss Before Tax after considering exceptional items was Rs. 1,581.60 Lakh

Q4’ FY24 Business Highlights:

• Q4’24 revenue was Rs. 672.34 Lakh

• Systems Integration and Solutions business reported revenue of Rs. 578.77 Lakh

• Loss Before Tax and exceptional items Rs. 546.59 Lakh

• Loss Before Tax after considering exceptional items Rs. 546.59 Lakh

HCL Infosystems today announced its financial results for the quarter ended Mar 31[st] , 2024.

Mr. Raj Sachdeva, Manager of HCL Infosystems Ltd, commenting on the results’ said, “In FY 24, the Company continued to focus on monetization of properties, realization of tax refunds, realization of receivables through arbitration proceedings, expediting deliverables of existing projects.

Company Update

Legal update

As stated in our earlier releases, the Company has initiated arbitration proceedings against some of the curstomers of Systems Integration and Solutions business where acceptance, sign-offs and payments are held up for a long time. The arbitration proceedings are progressing and we shall keep the stakeholders informed about the outcome, as and when the proceedings conclude.

Due to these multiple legal arbitration proceedings and legacy issues, significant effort and cost is being incurred on legal and legacy matters.

With our continued focus on arbitrations to recover our dues, the company has some initial wins against some of customers during the year amounting to more than Rs. 6,000 Lakhs. However, customers have the right to appeal these awards and some of them have already done so.

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Appoinment of new Independent Directors

The Board of Directors of the Company in their meeting held on 10[th] August 2023, appointed Mr. Raghu Venkat Chivukula and Mr. Kirti Kumar Dawar as Additional Non-Executive Independent Directors, not liable to retire by rotation, for a first term of five consecutive years from 10[th] August 2023 till 9[th] August 2028. The appointment was approved by shareholders of the Company.

Mr. Kaushik Dutta and Ms. Sangeeta Talwar, Independent and Non-Executive Directors retired after completion of their second term w.e.f. closing hours of 31[st] March 2024.

Re-appointment of Dr. Nikhil Sinha for second term

The Board of Directors of the Company in their meeting held on 13[th] February 2024, re-appointed Dr. Nikhil Sinha as Independent and Non-Executive Director, not liable to retire by rotation, for a second term of five consecutive years from 1[st] April 2024 to 31[st] March 2029. The re-appointment was approved by the shareholders of the Company.

Borrowing Position as on 31[st] Mar’24

1. There are no external loans. However, there is interest free unsecured loan of Rs. 35,500.00 Lakhs from promoter company, HCL Corporation Private Limited.

2. The current utilisation of Non-fund based limits is Rs. 19,103.57 Lakhs, mainly on account of Bank Guarantees.

Divestment of Property

The Company has decided to monetize certain Company owned properties in a phased manner. Several of the Company's properties are not being fully utilized due to changes in the business of the Company. During the current year, the Company sold one property for a total consideration of Rs. 1,500.00 Lakhs.

Tax refund

Total tax refund received during the current financial year is Rs 1,866.56 Lakhs.

About HCL Infosystems

HCL Infosystems is an IT System Integration and Solutions company. For more information, please visit us at www.hclinfosystems.in.

Media Contact Information
HCL Infosystems	cosec@hcl.com