Patni Computer Systems Limited (Patni) announced its financial results for the third quarter ended 30th September 2009.
*Important Note: In Q3 2009, based on prior years tax reviews by IRS, which were concluded during the quarter, certain provisions have been reversed resulting in one time increase in gross profit of US$ 1.2 million, other income of US$ 2.1 million and decrease in tax expense of US$ 8.1 million. Consequently, profit after tax has increased by US$ 11.4 million for the quarter. Similarly in our Q3 2008 release, prior year’s tax reviews by IRS, had resulted in reversal of certain provisions which led to a one time increase in gross profit of US$ 2.8 million, other income of US$ 8.3 million and decrease in tax expense of US$ 7.7 million. Consequently, profit after tax had increased by US$ 18.7 million for Q3 2008. Variations in Patni’s Q3 2008 & Q3 2009 financial performance as a result of such write backs have been referred to as “Extra Ordinary Items” in this press release. Financial Performance excluding these Extra ordinary items has been considered for comparative performance review in this release.
Performance Highlights for the quarter ended September 30,2009
Revenues for the quarter at US$ 167.2 million (Rs.8,040.2 million)
* Up 3.3% QoQ from US$ 161.9 million (Rs.7,729.1 million)
* Down 8.9 % YoY from US$ 183.5 million (Rs. 8,522.5 million)
* Revenue concentration from top client lower at 11.9% against 12.3%, Top 5 up at 38.3% from 37.2%, $ 1m relationships up at 92 , 7 new clients added during the quarter.
Operating Income for the quarter at US$ 27.1 million (Rs.1,303.1 million)
* Up 11.7% QoQ from US$ 24.3 million (Rs.1,158.3 million)
* Down 2.0% YoY from US$ 27.6 million (Rs.1,283.9 million)
* Operating Income adjusted for Extra Ordinary items is at US$25.9 million for the quarter, + 6.9% QoQ and +4.3% YoY .
Net Income for the quarter at US$ 35.7 million (Rs. 1,715.7 million)
* Up 24.5% QoQ from US$ 28.7 million (Rs. 1,368.5 million)
* Down 17.2% YoY from US$ 43.1 million (Rs.2,001.9 million)
* Net income adjusted for Extra Ordinary items is at US$ 24.3 million for the quarter, (-)15.2% QoQ and (-)0.4% YoY
EPS for the quarter at US$ 0.28 per share (US$ 0.56 per ADS).
* EPS adjusted for Extra Ordinary items is at US$ 0.19 per share (US$ 0.38 per ADS)
Future Outlook:
* Q4 CY2009 Revenues are expected to be at US$ 168 million to US$169 million and Net Income (Excluding the hedging Gain/Loss) is expected to be in the range of US$ 24 million to US$ 25 million
* This guidance is based on constant Rupee -USD rate of Rs.46.5 and constant GBP –USD rate of 1.65, EURO-USD rate of 1.40.
* Mark to Market foreign exchange gain during Q4 2009 is expected to be in the range of US$ 1 to $ 1.5 million based on current estimates. This may change depending on further currency movements during the quarter and will impact our Net Earnings accordingly.
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