Patni net dips 39% y-o-y

Patni Computer Systems in its first quarter results ended March 31, 2008 reported a dip of 39 per cent in its net income at Rs 72.46 crore from Rs 120 crore registered during the corresponding quarter last fiscal. Revenue for the quarter increased by 5 per cent at Rs 706.12 crore from Rs 672.4 crore for the same quarter last financial year.

On a sequential basis (quarter ended December 31, 2007) the net income of the company was down by 27.3 per cent from Rs 99.7 crore— revenue increased by 2.9 per cent from Rs 686.19 crore.

The company reported revaluation and mark to market foreign exchange loss for the quarter at $2.2 million (Rs 8.9 crore) as compared to forex exchange gain of $4.7 million (Rs 18.5 crore) in previous quarter. The quarter end rate for debtor's revaluation was Rs 40.11.

The Mumbai-based firm also announced the appointment of Louis Theodoor (Loek) van den Boog as the executive director of the company with a view to strengthen the management team. Loek has been an independent director with the company since March 2005.

Narendra K Patni, chairman and chief executive officer, Patni Computer Systems said, "While Revenue and Profits are in line with our guidance we are in a cautious market situation in 2008 with uncertainty and volatility in global markets. We are running our business in lower than normal visibility. We are making all the investments necessary to diversify our business."

Client acquisitions during the quarter were 34 as compared to 37 of previous quarter. Number of active clients was 331 at the quarter end as compared to 318 in Q4 2007.

Executive Director Loek van den Boog, said, "We are committed to build Patni to a next generation services company. We are confident of our abilities to transform the business with mix of internal and market based measures to enhance overall shareholder value with profitable and sustainable growth."

Surjeet Singh, chief financial officer, Patni, said, "We are actively looking for strategic acquisitions and shall invest in the business on all dimensions. We are seeking these acquisitions in BPO, Enterprise applications and consulting specifically in UK and Continental Europe and are expanding geographically to enhance our presence in the region."

Patni's gross margin at 28.7 per cent for this quarter was negatively impacted due to increase in immigration cost on account of US H1B filing and drop in utilisation net of other operating costs.