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Fall in demand cuts Patni Computer’s Q1 net by 17%

Fall in demand cuts Patni Computer’s Q1 net by 17%
PTI
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First Published: Wed, Apr 29 2009. 07 32 AM IST
Updated: Wed, Apr 29 2009. 07 47 PM IST
Mumbai: Software firm Patni Computer Systems Ltd on Wednesday said March-quarter net profit fell 17.4% largely due to shrink in demand, but projected higher profit for April-June.
The company posted net income of $18.1 million (Rs90.8 crore) in the quarter, it said in a filing to the Bombay Stock Exchange (BSE). Revenue for the quarter stood at $156.4 million, down 11% from $176.4 million in the year-ago period.
“The demand environment continues to be challenging in the short run, however, we are investing for portfolio expansion in all areas,” chief executive officer Jeya Kumar said. “Long-term growth prospects of the global delivery model are robust.”
New York-listed Patni Computer forecast a net profit before hedging losses/gains of $26.5 million to $27 million for the second quarter ending June, better than $24.2 million last year.
Revenue is seen at $158-159 million, with notional forex losses at about $10 million. In the year-ago quarter, the company had clocked $182.6 million in revenue.
The profit would be higher as the company’s cost rationalization measures start to pay off, chief financial officer Surjeet Singh said.
“We are putting all levers of cost optimization and reduction at work, while simultaneously investing for long-term growth,” he said. “Currency changes are expected to cause volatility in addition to lower overall business visibility in short run.”
Shares in Patni gained 7.41% to close at Rs161.55 on BSE.
Reuters contributed to this story.
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First Published: Wed, Apr 29 2009. 07 32 AM IST