Analysis of HCL

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A project bySoumil Prakash Roll. No 138. 6/26/12

Acknowledgement
No project is complete without the sincere help and efforts of the professor. Thus, I would like to take this opportunity to thank our Professor Mr. Ganesh.

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Introduction

Since the inception of Liberalization, Globalization and Privatization it was known that the IT sector will be the one to look forward to. IT sector has always been synonymous to companies like INFOSYS, TCS AND WIPRO. But one company that has held its own ground is HCL which started its journey 3 decades back. HCL is the company which has given INDIA its very 1st micro computer.

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Management Hierarchy

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Timeline of HCL
1.

1976 - Hindustan Computer Limited(HCL) is born.

1.

1977 - Forms a partnership with TOSHIBA for distribution of copiers and notebooks.

1.

1978 - HCL successfully ships in-house micro computer as the same time as APPLE.

1.

1986 - HCL becomes INDIAS BIGGEST IT COMPANY.

1.

1990 - DATA QUEST marks HCL NO.1 amongst the TOP 10 COMPUTER GIANTS.

1.

1994 6/26/12 - Enters an alliance with NOKIA.

8.

2002 - Software business of HCL Infosystems and HCL Technology is merged. 2006 - HCL ties up with APPLE for IPod distribution. 2006 - HCL Technologies signs LARGEST EVER software deal with DSG. 2007 - HCL Technologies crosses $4 billion mark. 2008 - HCL earmarked as one of BRITANS TOP EMPLOYERS. 2008 - HCL earmarked as the most DEMOCRATIC WORK PLACE. 2009 - HCL partners BSNL for the Broadband Penetration Programme. 2011 - Ajai Chowdry one of the co-founder of HCL awarded with PADMA BHUSHAN.

8.

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Partners

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SWOT Analysis

STRENTHGHS Global presence Tie ups with multinationals Best value for money offerings

WEAKNESS After sales service Less promotional activities Less aggressive

OPPORTUNITIES IT industry booming at a rate of 45% every year

THREATS Local assemblers Entry of MNCS

Tremendous potential of IT products in More established and focused INDIA players Increasing usage of IT 6/26/12

Key Figures
Variables/Ye 2009 - 2010 ar Net revenue 12049 2007 - 2008 12447 2006 - 2007 11685 2005 - 2006 11368 2004 2005 7744

Total 11728 Expenditure Interest EBIDTA PAT 39 346 242

12019

11262

11005

7475

39 430 300

10 428 315

-1 385 280

-3 296 227

Earning per share (EPS) in Rs.

11

17

18

16

12

Employee Cost

391

301

227

180

145

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Comparisons
Name Last Price Market Cap. (Rs. cr.) 3,406.69 2,819.57 1,902.31 1,012.99 334.09 145.52 53.91 33.31 21.98 20.37 16.18 Sales Turnover 8,322.73 798.08 945.80 11,979.45 1,872.87 195.03 1,373.91 194.47 193.18 26.12 Net Profit Total Assets Redington CMC S Mobility HCL Info Moser Baer Smartlink Net Compuage Info TVS Electronics Zenith Computer MRO-TEK EuroMult 85.50 930.55 79.90 45.45 19.85 48.50 81.00 18.85 14.20 10.90 6.80 128.44 155.73 78.20 261.55 -406.42 16.56 8.67 -3.43 2.18 -12.89 1,279.09 597.11 680.25 2,524.58 3,482.56 169.73 164.12 85.90 128.93 76.76 285.60

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Charts

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Conclusion

HCL is one of the most prominent IT companies in the world. HCL is managed by extremely sound professionals.

It is one of the few companies which does business planning every six months to analyze its SWOT.

Even though at present its Profits might be decreasing, HCL has enough reserves and strong professionals to make it stand the test of time.

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Bibliography

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THANK YOU!!
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