Patni Computer Systems
Date: Wednesday , December 28, 2005
Mumbai based Patni Computer Systems is a global IT Services provider. The company reported significant revenue growth of 30.1 percent from $251.0 million in 2003 to $326.6 million in 2004. Gross profit for the year increased to $128.1 million, higher by 31.8 percent over the previous year.
The company’s 10,000 professionals service clients across diverse industries, from 26 sales offices and multiple offshore development centers across eight cities in India. For the year 2004, Patni ranked seventh in the `Top 20 IT Software and Service exporters in India’ (excluding ITES-BPO revenues) listed by the National Association of Software and Services Companies (Nasscom).
Recently, the Board of Patni approved the issue of American Depository Receipts up to $150 million.
On December 8, 2005 shares in Patni debuted on the New York Stock Exchange at $23.80 each, 17% higher than the $20.34 price the company set. The company has said it intends to use all of the net proceeds for the construction and development of new infrastructure facilities at its offshore locations in India. The offering was seen as a way for Patni to boost its profile and to attract new customers and investors in the crucial U.S. market.
The company also appointed Loek van den Boog, an IT industry veteran, as an independent director on the company’s board. This appointment illustrates Patni’s endeavor to induct global expertise across domains at the board level to help shape Patni’s business strategy. The company has identified Benelux region in the E.U. as one of the key markets and has started offices in Amsterdam. This is their fifth office in Europe, the other being in Germany (Stuttgart, Munich), Sweden and the U.K.
Recently the Netherlands based financial powerhouse ABN AMRO handed a part of its $1.2 billion application development deal to Patni Computer Systems.
Last year, Patni acquired U.S-based Cymbal Corporation, the largest overseas acquisition ever by an Indian IT Services company. The acquisition gave Patni a head start into the $60 billion telecom vertical. Cymbal delivered 14 key clients in the telecom segment and also added over 600 employees and consultants to Patni’s manpower base.
In 2002, Patni got a $100 million investment from General Atlantic Partners, a private equity firm. The alliance with GA not only gave Patni the required capital but also the foresight to be a big player in the U.S.
The company’s IPO in February 2004 was 22 times over subscribed. It raised Rs. 310 crore, which enabled Patni to realign its business strategy. Its vertical strategy to focus on insurance, financial services, manufacturing, telecom, and growth industries—including emerging practices in retail, media & entertainment, energy & utilities and logistics & transportation is beginning to show results.