Patni's Q1 revenues up 13.1 pc at $176.4 mn

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Mumbai, Apr 30: Patni Computer Systems Limited (Patni) today announced its financial results for the first quarter ended 31st March 2008.

Performance Highlights for the quarter ended March 31, 2008:

Revenues for the quarter at US$ 176.4 million (Rs. 7,061.2 million)

Up 13.1 pc YoY from US$ 156.0 million (Rs. 6,724.1 million)

Up 1.3 pc sequentially from US$ 174.1 million (Rs. 6,861.9 million)

Contribution from top customer at 11.1% for the quarter from 12.5 pc during the previous quarter

New client acquisitions during the quarter were 34 as compared to 37 of previous quarter. Number of active clients was 331 at the quarter end as compared to 318 in Q4 2007

Offshore leverage in the current quarter was 70.8 pc compared to 70.3 pc in the previous quarter. On YoY basis offshore leverage has increased by 2.4 pc.

Operating Income for the quarter at US$ 17.3 million (Rs. 693.4 million)

Down 42.9 pc YoY from US$ 30.3 million (Rs. 1,307.8 million)

Down 36.0 pc sequentially from US$ 27.1 (Rs. 1,066.3 million)

Net Income for the quarter at US$ 18.1 million (Rs. 724.6 million)

Down 35.0 pc YoY from US$ 27.8 million (Rs. 1,200.3 million)

Down 28.4 pc sequentially from US$ 25.3 million (Rs. 997.2 million)

EPS for the quarter at US$ 0.13 per share (US$ 0.26 per ADS)

Stock based expenses in Q1 CY2008 were at US$ 1.1 million compared to US$ 1.3 million in the previous sequential quarter

Q2 CY2008 revenues are expected to be at US$ 180 to US$ 181 million and net income (excluding the foreign exchange gain/loss) is expected to be in the range of US$ 22.0 to US$ 23.0 million taking the operations at a constant dollar value of Rs 40 per US$ for the quarter.

Commenting on the quarter, Narendra K Patni, Chairman and CEO, Patni Computer Systems Ltd., said, "While Revenue and Profits are in line with our guidance we are in a cautious market situation in 2008 with uncertainty and volatility in global markets. We are running our business in lower than normal visibility. At the same time we find ourselves in good position and remain confident of our prospects on mid to long term basis."

"We are making all the investments necessary to diversify our business. We have recently appointed Louis Theodoor (Loek) van den Boog from our Board as Executive director of the company to expand and deepen the management," added Patni.

The newly appointed Executive Director Loek van den Boog, said, "We are committed to build Patni to a next generation services company with adequate differentiation and Business Solutions oriented focus leveraging the global delivery model. We are confident of our abilities to transform the business with mix of internal and market based measures to enhance overall shareholder value with profitable and sustainable growth."

Commenting on the performance, Mrinal Sattawala, Chief Operating Officer, Patni, said, "During the current quarter our revenue base has been diversified further resulting in reduced dependence on top 10 accounts. For the quarter under review we have added 34 new clients bringing our tally of active clients to 331.Going forward we expect to leverage our operating efficiencies significantly to grow profitability."

Speaking on the occasion, Surjeet Singh, Chief Financial Officer, Patni, said, "We continue to take steps in rationalization of internal operations to manage costs, and invest in our business to increase our services and market foot prints.

We are actively looking for strategic acquisitions and shall invest in the business on all dimensions. We are seeking these acquisitions in BPO, Enterprise applications and consulting specifically in UK and Continental Europe and are expanding geographically to enhance our presence in the region. Similarly Product Engineering business is an area of identified investments organically and inorganically."


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