Syntel net income up to 44 percent YOY

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Syntel net income up to 44 percent YOY
Bangalore: Bharat Desai founded Syntel (NASDAQ: SYNT) posted quarterly results that beat estimates as more clients turned to its services with a view to cut costs, and the company raised its full-year profit view, sending its shares soaring to a new 52-week high. Syntel's total revenue for the second quarter increased four percent to $100.1 million (481 crore), compared to $96.4 million (464 crore) in the first quarter of 2009. Net income of the company was $25.1 million (121 crore) or $0.61 per diluted share, compared to $17.4 million (84 crore) or $0.42 per diluted share in the prior-year period.

During the second quarter, Syntel added three new clients and two new 'Hunting Licenses' or preferred partnership agreements, bringing the total number to 96 strategic relationships. The company has invested close to $37 million (185 crore) in 2008 and has planned to invest approximately $25 million (120 crore) in 2009 as it makes progress on construction of its special economic zone (SEZ) campuses in Pune and Chennai.

The company stated in its quarterly report that pricing in the second quarter was flat relative to the first quarter, and expects pricing to remain stable through the balance of the year. However, Keshav R Murugesh, CEO and President, Syntel said, "While the second quarter did bring some positive signs, we are yet to see strong evidence of overall pick-up in demand." Syntel expects full-year profit of $2.40 to $2.50 a share, up from its earlier forecast of $2.12 to $2.42 a share in Q3.

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