Quarterly net profit of HCL Infosystems plunged 74 percent as its flagship computer retailing business suffered in an economic slowdown worsened by lesser government investment in computing and office automation business.
The company earned 121.5 million rupees for July-September, compared with 474.6 million rupees a year ago.
Net sales dropped 6 percent to 27.88 billion rupees.
Their partnership with Nokia hurt. Nokia has not been doing well, and that pressured HCL's margins. This impacts their distribution business, said a Mumbai-based sector analyst.
HCL Info has earlier this year renewed an agreement with Nokia to distribute the Finnish firm's devices. That partnership is due for renewal on Dec. 31, 2014.
A flood of cheap handsets from the likes of China's ZTE and India's Micromax is destroying Nokia's top position in emerging markets, and as Asian handset manufacturers increasingly move to Google's free Android software.
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