Credit rating agency, Fitch Ratings has revised HCL Infosystems (HCL) outlook to negative from stable. Its national long-term rating has been affirmed at 'Fitch AA-(ind)'.
The outlook revision reflects Fitch's view that HCL's net interest coverage could deteriorate further in the near term, based on its falling EBITDA margins since 9MFY12 and a persistent revenue decline since FY11. Besides, the negative outlook also reflects the company's underperforming systems integration business and a loss of its market share in the computing and telecom distribution segments.
The ratings continue to be underpinned by HCL's established position in the commercial desktops segment, long-term relationship with Nokia, strong 'HCL' brand name and a wide distribution network. The ratings are also supported by the company's strong liquidity position, as reflected in the largely unused fund-based working capital limits as on March 31, 2012. Fitch expects HCL's liquidity to remain comfortable with no immediate capital commitments, low-to-moderate working capital intensity of overall business and low debt maturities.
Further, the ratings factor in management's initiatives for improving profitability via focusing on increasing revenue contribution from its high-margin service and learning business and widening of its product distribution portfolio. However, the improvement is expected in the long term as the current pool of these businesses is small in relation to consolidated business profile.
HCL Infosystems is one of the leading ICT system integrator and distribution company. It has wide range of products and services such as IT products, solutions and related services, which include PCs, servers, imaging, voice and video solutions, networking products, TV and FM broadcasting solutions, communication solutions, system integration, ICT education and training, digital lifestyle solutions and peripherals.
| Company Name | CMP |
|---|---|
| Redington | 205.10 |
| Adani Enterprises | 2341.95 |
| Amrapali Industries | 17.38 |
| Rashi Peripheral | 413.85 |
| Compuage Infocom | 3.05 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Limited to the first 10 users today!
Practical Stock Investing Hand Book
By - Raymond Moses
Founder of MoneyWorks4Me | Consultant | Trainer | Author | TEDx Speaker
Register & Get Instant Access!Don't miss out! First 10 users today get it FREE
With this 4 hrs Masterclass, you’ll be able to:
Download APP
