Patni's Q2 net income up 10.7 percent YoY

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Patni's Q2 net income up 10.7 percent YoY
Bangalore: Patni Computer Systems has announced its financial results for the second quarter which reported a 7.6 percent rise in April-June consolidated net income to 1.47 billion rupees and said sustaining growth continued to pose a challenge.

The firm's quarterly consolidated revenues came in at 7.63 billion rupees. For the third quarter ending September, Patni forecast net income (excluding a hedging impact) of $22.5 to $23 million on revenues of $176-$177 million.

Jeya Kumar, Chief Executive Officer, said "While there is a general improvement in demand environment predictability and sustainability of growth is still challenging. We experienced the same in current quarter as some of the projects starts were behind expected schedules in our portfolio. We are confident that our strategic investments will pay off in mid to long run with execution of differentiation in micro verticals to gain leadership in our chosen industry market segments."

The revaluation and mark to market foreign exchange gain for the quarter were at $4.3 million (197.6 million) as compared to foreign exchange gain of $4.8 million (214.3 million) during the previous quarter.

The quarter end rate for debtor's revaluation was 46.4. Outstanding contracts at the end of Q2 2010 were about $398.0 million which were contracted in the range of 41.0 to 48.0.

Surjeet Singh, Chief Financial Officer, said, "Focused cost management efforts have resulted in overall improvement of margin profile for the year as we absorbed the wage increases during the quarter in line with expectations besides neutralizing forex changes with superior risk management in an otherwise constant pricing environment."

It expects a mark-to-market foreign exchange gain in the range of $1 million during the third quarter. This may change depending on further currency movements and will impact earnings accordingly

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