Syntel Inc's net profit up at Rs 81.6 cr for Q1

Mumbai, Apr 25 (UNI) US-based Syntel Inc, a leading Knowdledge Process Outsourcing (KPO), has posted a net profit higher at Rs 81.6 crore for the first quarter ended March 31, as compared to Rs 61.6 crore during the corresponding period last year.

Syntel has announced 31 per cent growth in the first quarter of this year. The company's revenues for the quarter increased 31 per cent to Rs 394.0 crore against Rs 301.6 crore during the same period last year.

However, the net profit recorded a high at Rs 251.4 crore for the financial year ended December 31, 2007, as compared to Rs 203.6 crore in 2006.

While the sales turnover registered a high at Rs 1,350.6 crore for fiscal year 2007 against Rs 1,080.8 crore for 2006.

Syntel has this quarter added 11 new clients, the highest ever in the last 4 years. It has also added one new ''Hunting License'' or preferred partnership agreement, bringing the total number to 89 strategic relationships.

Syntel's KPO segment grew over 120 per cent year-over-year and 15 per cent sequentially and represented more than 20 per cent of overall revenues at the end of first quarter ended March 31 this year.

This marked the 16th consecutive quarter of organic revenue growth for the company. Work has progressed on Syntel's new campus construction in Chennai.

The company's plans called for Phase I, to be completed by fourth quarter ended December 2007 as well as Phase II of the Pune campus by second quarter ended June 2007, which will add 6,000 new seats in India. Syntel expects to spend Rs 240 crore in Capex in India in 2008.

In a statement here today, Syntel President and Chief Operating Officer Keshav R Murugesh said ''Smart organizations will continue to shift a larger portion of their overall IT budget to global sourcing initiatives in order to gain competitive advantages such as speed to market, quality enhancement, cost benefits and scalability.

Now, more than ever. Syntel will continue our aggressive investments in people, new offerings and our world-class campus construction programs in India. Our business development pipeline is strong, our model and approach are resonating well in the market, and we will continue to focus on adding incremental value via innovation for our global roster of Blue Chip clients.'' UNI AR SSS AG2101