Patni Q2 suffers net loss of Rs 14.69 cr

Mumbai, Aug 1 (UNI) Patni Computer Systems Ltd (Patni) has incurred a loss of Rs 14.69 crore (USD 3.21 million) for the quarter ended June 30, 2006 compared to a profit of Rs 62.14 crore (USD 14.28 million) in the corresponding quarter last year.

Announcing the results, the Company said its total income in the quarter ended June 30, 2006 adjusted for additional provisions is USD 16.7 million.

The revenue of the group has increased by 38.69 per cent to Rs 656.06 crore (USD 143.03 million) for the quarter ended June 30, 2006 from Rs 473.02 crore (USD 108.72 million) in the corresponding quarter last year.

Operating profit rose to Rs 111.07 crore (USD 24.21 million) for the quarter under consideration compared to Rs 66.27 crore (USD 15.23 million) in the corresponding quarter last year.

Revenue contribution from GE reduced to 14.5 per cent in the quarter ended June 30, 2006 from 23 per cent in the corresponding quarter last year. Strong growth was achieved across most vertical and technology segments, including double-digit sequential expansion in manufacturing, telecom and ISV practices. Non-US regions grew 22.8% sequentially with key growth drivers being Europe, Asia Pacific and rest of the world.

Commenting on the quarter ended June 30, 2006 performance, Narendra K Patni, Chairman and CEO, Patni Computer Systems, said, ''Our Q2 performance underscores Patnis ability to deliver sustained growth by leveraging the advantages of its highly scalable business model. Margins have been impacted by the annual salary revisions and re-assessment of our obligations for taxes pertaining to prior years by IRS and a review by Department of Labor. Net income after adjusting for these additional provisions is at USD 16.7 million ahead of our guidance. Moving into Q3, we expect revenue growth of 4.5% to 5% and net income in the range of USD 18 to 18.2 million excluding forex variations and considering a constant dollar value of Rs 45.48 per USD.'' Commenting on the performance, Mr Mrinal Sattawala, Chief Operating Officer, Patni, said, ''Patni has delivered close to double digit growth during the quarter through revenue expansion across a diverse segment of its clients, across its focus vertical and technology segments and in most regions globally. This has resulted in further diversification of our revenue streams, a key focus area for us. During Q2, we have made several initiatives, some organic and others in conjunction with our partners, that are expected to accelerate our future growth prospects.'' Speaking on the occasion, Deepak Sogani, Chief Financial Officer, Patni, added, ''In Q2 2006, Patni showed strong revenue growth driven by volume expansion. Annual planned salary revisions implemented across our global operations and the seasonal increase in legal immigration expenses led to a reduction in operating margins. We saw improvements in our operations resulting in better realized prices and higher utilization levels. SG