HCL Infosystems, an IT company, recently reported a decreased net loss in the third quarter of the fiscal year, due to efforts made to recover unpaid receivables and minimize losses. However, revenue from operations declined by 30.14% year-over-year and by 16% sequentially. According to the regulatory filing, HCL Infosystems reported a reduced net loss of Rs 5.25 crore, compared to the Rs 9.30 crore loss it recorded during the same period in the previous fiscal year.
Although the company claimed to have streamlined its operations by focusing on collection of outstanding receipts and minimizing operative losses, issues persist. Several clients have slow-payed completed projects, thus delaying payments due to the business. In anticipation of these revenue issues, they have started settlement proceedings against client companies. On the other end, the operational expenses, coupled with legal conflicts and tax recovery, have slowed down the activities of the sector.
The appointment of Rita Guru as an interim director has recently been announced after the retirement decision of Rithu Arrore, board member, April 5 next year. Since the company was struggling with paying debts, managing financial matters properly, and fulfilling compliance obligations within the stipulating time frame remains a challenge facing the business with a gloomy outlook. Ultimately, the fate of the brand remains uncertain to some extent without the successful reconciliation of outstanding demands and streamlining of operations further.