Patni Q2 net up 8 pct on forex gains

Written by Agencies | Mumbai | Updated: Jul 28 2010, 20:38pm hrs
IT firm Patni Computer Systems on Wednesday reported a growth of nearly eight per cent in net profit at Rs 146.74 crore for the second quarter ended June 30, on foreign exchange gains.

As per the Indian accounting standards, net profit for the same quarter in the previous year was Rs 135.96 crore, Patni said in a filing to the Bombay Stock Exchange.

However, the company's total income declined to Rs 815.45 crore for the April-June quarter from Rs 819.9 crore in the same period last year.

"While there is a general improvement in demand environment predictability, 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," Chief Executive Officer Jeya Kumar said.

Patni's revenue from sales and services declined to Rs 762.88 crore for the period ended June 30 against Rs 779.64 crore in the same period last year.

However, the re-valuation and market-to-market foreign exchange gain for the quarter were at USD 4.3 million (Rs 19.76 crore) as compared to foreign exchange gain of USD 4.8 million (Rs 21.43 crore) during the previous quarter.

The company expects revenues in the range of USD 176- 177 million while net income (excluding the hedging gain/loss) is expected to be between USD 22.5- 23 million for the third quarter FY'2010.

During the quarter the company added 934 employees, taking the total headcount to 14,893.

As per the US accounting standard, Patni has reported a net income of USD 31.7 million (Rs 147.3 crore) for the April-June quarter 2010, up 10.7 per cent from USD 28.7 million (Rs 136.85 crore).

Revenues for the quarter rose by 3.5 per cent at USD 167.6 million (Rs 777.63 crore), from USD 161.9 million (Rs772.91 crore).

While Americas contributed 81 per cent to the company's revenues, EMEA and APAC accounted for 12 per cent and 7 per cent of the revenues respectively, for the quarter ended June 30, 2010.

Shares of Patni were trading at Rs 498.70 on the BSE, down 2.36 per cent from the previous close.