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Patni Q1 net inches up on lower tax provision

Patni Q1 net inches up on lower tax provision
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First Published: Wed, Apr 27 2011. 02 19 PM IST
Updated: Wed, Apr 27 2011. 02 19 PM IST
Mumbai: Patni Computer Systems, in which US-based iGate is buying a majority stake for $1.2 billion, on Wednesday posted a marginal rise in profit for the January-March quarter, propped partly by a slump in provision for taxes.
The company’s profit fell 20.5% to $26.5 million, according to US GAAP figures.
In terms of Indian GAAP, Patni, which has 17,739 employees, posted a consolidated net profit of Rs162 crore, compared with Rs157 crore a year ago.
There was a 61% drop in provision for taxation during the quarter to Rs129.1 million from Rs329.6 million a year ago.
“All parameters of operating and financial metrics were in line with our estimates,” Surjeet Singh, chief financial officer, said in a statement.
The company, which added 14 new clients in the quarter, saw its total income rise about 10% to Rs892 crore.
In January, iGate, backed by private-equity firm Apax Partners, acquired a majority stake in Patni for $1.2 billion in one of the largest deals in India’s technology sector.
The US-listed software firm launched an open offer for 20.6% in Patni on 8 April. The open offer closes on Wednesday.
At 10.59 pm, shares of the company, which the market values at $1.37 billion, were down 0.2% at Rs455.2 in a choppy Mumbai market. The BSE IT index was flat.
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First Published: Wed, Apr 27 2011. 02 19 PM IST