HCL Infosystems has posted over 74 per cent fall in consolidated net profit for the three months ended September 2011, hurt by foreign exchange loss and a slowdown in some of its businesses.

The company said that the system integration business – which involves linking computers, software, and networks together - has been “severely impacted” by slowdown in projects and customer decisions. The office automation business, too, was hit due to a lower spending in the Government sector.

The consolidated revenue in September quarter fell six per cent compared to the year ago period. The company follows July to June financial year.

Profit after tax was reported at Rs 12 crore for the first quarter ended September 2011, including a foreign exchange loss of Rs 22 crore, HCL said in a statement. Revenues from computer systems business declined 20 per cent to Rs 722 crore. This segment includes revenue from computing, systems integration, and learning business.

On the other hand, the telecom and office automation business clocked Rs 2,073 crore, more or less at similar level as the year ago period.

Interim dividend

Mr Harsh Chitale, CEO, HCL Infosystems, expressed confidence that the re-alignment exercise initiated recently by the company to drive cost and working capital efficiency, will improve the profitability and cash flow performance in coming quarters.

Meanwhile, HCL board has declared an interim dividend of Re one on fully paid up share (that is, 50 per cent on an equity share of par value of Rs 2 each).

“The rate of interim dividend was lowered from 100 per cent to 50 per cent on account of foreign exchange rate loss,” the company statement added.

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