Increase in Q2 revenue by 4% to $100.1 mn
Syntel, Inc. (NASDAQ: SYNT), a global information technology services and Knowledge Process Outsourcing (KPO) firm, today announced financial results for the second quarter ended June 30, 2009.
Syntel's total revenue for the second quarter increased 4 percent to $100.1 million (Rs.481 crore), compared to $96.4 million (Rs.464 crore) in the first quarter of 2009 and decreased 3% compared to $103.4 million (Rs 497 crore) in the prior year period. The Company's gross margin was 48.2 percent in the second quarter, compared to 41.1 percent in the prior-year period (710 bps increase).
Syntel's income from operations expanded to 27.4 percent in the second quarter, compared to 22.1 percent in the prior-year period (530 bps increase) .
Net income for the second quarter was $25.1 million (Rs.121 crore) or $0.61 per diluted share, compared to $17.4 million (Rs.84 crore) or $0.42 per diluted share in the prior-year period.
During the second quarter, Syntel added 3 new clients and two new "Hunting Licenses" or preferred partnership agreements, bringing the total number to 96 strategic relationships.
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Operational highlights
“Syntel was encouraged by improved stabilization in the marketplace and the increasingly positive discussions initiated with our clients during the quarter,” said Keshav R Murugesh, Chief Executive Officer& President, Syntel. “While discretionary projects remain sidelined, customers are beginning to once again look at cost reduction initiatives which are aligned with their longer-term strategic objectives.”