HCL Infosystems Limited , a prominent player in the Indian IT sector, has recently undergone a significant change in its credit rating status. CARE Ratings Limited, a leading credit rating agency in India, has withdrawn the credit rating assigned to HCL Infosystems for its bank facilities. This action was taken following a request made by the company via email on November 12, 2025.

Key Points

• Withdrawal Request: HCL Infosystems initiated the process by requesting the withdrawal of its credit rating.
• Compliance: CARE Ratings confirmed that the withdrawal is in compliance with its established withdrawal policy.
• Announcement: The rating agency will be announcing this withdrawal through a press release.
• Usage Restriction: HCL Infosystems is required to cease using the withdrawn ratings for any purpose moving forward.

Financial Overview

While the credit rating withdrawal is a significant development, it's important to consider the company's financial position. Based on the most recent balance sheet data available, here's a snapshot of HCL Infosystems' financial health:

The balance sheet reveals some challenges faced by HCL Infosystems:

1. Declining Assets: The company's total assets have decreased by 3.52% year-over-year.
2. Negative Shareholders' Capital: The negative value indicates significant financial stress.
3. Increasing Liabilities: Total liabilities have increased by 2.77%, further straining the company's financial position.

Implications

The withdrawal of the credit rating at HCL Infosystems' request, coupled with the company's current financial position, may raise questions among investors and stakeholders. While the reasons behind the rating withdrawal request are not explicitly stated, it's often a step taken by companies undergoing significant changes in their financial structure or strategy.

Investors and stakeholders may closely monitor future announcements from HCL Infosystems for any strategic shifts or restructuring plans that may follow this development. The company's ability to manage its liabilities and improve its asset base could be crucial in the coming months.

As the technology landscape continues to evolve rapidly, HCL Infosystems' next moves will be important in determining its path forward in the competitive IT sector.

HCL Infosystems Limited , a prominent player in the IT system integration and solutions sector, has announced a significant move to bolster its financial position. The company's Board of Directors has given the green light to raise funds through the issuance of non-convertible debentures (NCDs) via private placement.

Key Details of the NCD Issuance

• Issue Size: The company plans to issue 35,50,000 NCDs
• Face Value: Each NCD will have a face value of ₹1,000
• Total Fundraising: The total amount to be raised is ₹355 crore
• Nature of NCDs: Unsecured, unlisted, and redeemable
• Tenure: Maximum of 10 years from the date of allotment
• Interest Rate: 0.001% per annum
• Early Redemption: Option available upon mutual agreement
• Redemption Source: Either from profits or fresh issue of securities

Financial Context

The decision to raise funds comes at a crucial time for HCL Infosystems. The company's financial results for the quarter ended September 30 reveal some challenging trends:

The company attributes the decrease in revenue primarily to a one-time revenue of ₹201.28 lakhs from Facility Management Services under the Jharkhand RAPDRP project in the previous quarter.

Operational Challenges

HCL Infosystems continues to face operational hurdles, including:

1. Delays in obtaining customer approvals and sign-offs for completed projects
2. Slow pace of payment collections
3. Ongoing arbitration proceedings against certain customers
4. Substantial legal expenses (₹548.57 lakhs in the current quarter)

Positive Developments

Despite the challenges, there have been some positive developments:

• Favorable arbitration awards amounting to ₹10,280.85 lakhs (including interest) in a matter involving a central government authority
• Release of ₹500 lakhs pertaining to HP RAPDRP arbitration award

Management's Perspective

Mr. Raj Sachdeva, Manager of HCL Infosystems Ltd, commented on the results, stating, "The Company continued its efforts in Q2 for the recovery of overdue receivables from system integration customers, actively pursuing arbitration proceedings to expedite resolution."

Looking Ahead

The NCD issuance appears to be a strategic move to address the company's tight liquidity position. While HCL Infosystems has been working to reduce debt and operational losses with continued financial support from its promoters, the company currently lacks adequate surplus funds or resources for new business initiatives or expansion of existing operations.

As the IT solutions landscape continues to evolve, HCL Infosystems' ability to navigate its financial challenges and leverage its core competencies will be crucial for its future performance.