Patni net income jumps 93%

CORPORATE SCORECARD

Patni Computer Systems reported a net income of Rs 120.03 crore ($27.8 million) for the first quarter ended March 31, 2007, an increase of 92.8 per cent as compared to Rs 64.25 crore ($14.4 million) for the same quarter last fiscal. The company's consolidated revenues clocked Rs 5,777.55 crore ($129.8 million), a year-on-year increase of 20.2 per cent.

Patni's net income for the quarter also grew by 8.2 per cent sequentially. The rupee appreciation impacted the company's margins by 40 basis points. The earnings per share (EPS) for the quarter stood at Rs 8.68 ($0.20) and that of American depository shares (ADR) at $0.40, marginally higher than $0.19 per share and $0.37 per ADR.

Sales and marketing expenses during the quarter were marginally higher at Rs 48.46 crore ($11.2 million), as compared to Rs 48.50 crore ($11.0 million) in the previous quarter. General and administration (G&A) expenses at Rs 70.33 crore ($16.3 million) during the quarter were marginally higher compared to Rs 68.77 crore ($15.6 million) in the previous quarter due to period costs.

In its guidance for the second quarter ending June 30, 2007, the company said its revenues were expected to touch $163 million and net income (excluding the foreign exchange gain/loss) was expected to be in the range of $22.5 to $23.0 million. Narendra K Patni, chairman and CEO, Patni Computer

Systems said: "The quarter under review was one of stable growth and profitability enhancement. With phase one of our state of the art knowledge park now operational, our thrust is to drive aggressive profitable growth and escalate our business across newer verticals and service lines." The company added 26 new clients this quarter and reduced dependence on top five and top 10 clients.