Nasdaq-listed global information technology and business process outsourcing firm, Syntel, has reported a 26.2 per cent rise in net income at $18.3 million (Rs 73.9 crore) for the third quarter ended September 30, 2007. Its net income was $14.5 million (Rs 58.6 crore) in the corresponding quarter last financial year.Revenue of the company for this quarter grew 27 per cent to $87.9 million (Rs 355.3 crore) from $69.2 million (Rs 279.7 crore) in the corresponding quarter last fiscal. Sequentially (compared to the trailing quarter), its net income grew 13.5 per cent from $13.3 (Rs 53.7 crore), and revenue was up 9.3 per cent from $80.4 million (Rs 325 crore).Despite the growth performance, the company was affected by the rising rupee. On a quarter-on-quarter basis, the rupee impact on gross margins was 1.3 per cent which had an impact of $300,000 while the overall margins of the company were impacted by $500,000-$600,000.Keshav R Murugesh, Syntel President and Chief Operating Officer said: "About 51 per cent of the global costs are done in rupee denomination. However, we are pleased with the performance during the quarter, as Syntel continues to see incremental benefits from aggressive investments in people, new offerings, and infrastructure." He also stressed that the company during the past quarters has been in an investment mode, which will have an impact on margins in the short-term period.For the full year, the company expects revenues in the range of $332 to $337 million and EPS between $1.43 and $1.48. This guidance is based on an exchange rate of 39.70 rupees to the dollar for the fourth quarter. The guidance takes into account the rising rupee. As in the last quarter the exchange rate assumption was at Re 40.5. Capex in 2008 expected is $65 million.At the end of the quarter the headcount was 10,670 with an attrition of 14.1 per cent for this quarter. The company added eight new clients and launched 86 new engagements. In addition, it added two new "Hunting Licenses" or preferred partnership agreements this quarter, taking the total to 86.
