Patni Q1 net income down 17 p.c. at $15 mn

MUMBAI, INDIA: Software services provider Patni Computer Systems Limited, today reported a dip of 17.4 per cent in its profit for the quarter ended March 31, 2009, compared to the previous year quarter.

It reported a net income of US$ 15.0 million (Rs. 760.7 million), whereas for the March 2008 quarter it was US$ 18.1 million. On a Q-o-Q basis the dip is of 6.9 per cent. The company had reported a profit of US$16.1million in the previous quarter.

Revenues for the quarter stood at US$ 156.4 million (Rs. 7,954.8 million), that was down by11.4 per cent both Y-o-Y and Q-o-Q. The operating income for the quarter stood at US$ 16 million, down 7.8 per cent from its corresponding period in the year-ago period. In Q1 2008, the company had an operating income of USS 17.3 million.

Patni said the Q2 CY2009 revenues are expected to be at US$ 158 million to US$ 159 million and net income (excluding the hedging gain/loss) is expected to be in the range of US$ 26.5 million to US$ 27 million.

“The demand environment continues to be challenging in the short run. However we are investing for portfolio expansion in all areas. Long term growth prospects of the global delivery model are robust,” said Jeya Kumar, CEO, Patni.

He added that they would see the benefits of their excellent financial health in further enhancing sustainable differentiation of their strategy.

Surjeet Singh, chief financial officer said, “We are putting all levers of cost optimization and reduction at work, while simultaneously investing for long-term growth. Currency changes are expected to cause volatility in addition to lower overall business visibility in short run.”

During the reporting quarter the company has added 22 new clients to its list when compared to 18 during previous quarter, the release added.