Patni net jumps, but sees margin pressure

Patni net jumps, but sees margin pressure
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First Published: Wed, Apr 25 2007. 11 21 PM IST
Updated: Wed, Apr 25 2007. 11 21 PM IST
By Sumeet Chatterjee
Bangalore: Patni Computer Services Ltd today reported 92.8 % increase in its net income for the first quarter ended 31 March, at 27.8 million dollars (Rs 120.03 crore) compared to 14.4 million dollars (Rs 64.25 crore) in same period last year.
The company’s revenue during the quarter under review grew 20.2 % at 156 million dollars (Rs 672.41 crore) compared to 129.8 million dollars (Rs 577.55 crore) in the same quarter of previous fiscal, Patni said in a statement.
“The quarter under review was one of stable growth and profitability enhancement...our thrust is to drive aggressive profitable growth and escalate our business across newer verticals and service lines,” Patni Computer Chairman and Chief Operating Officer Narendra K Patni said in the statement.
Patni reported a 21.2 % increase in its gross profit for quarter at 55.9 million dollars (Rs 251.55 crore) as against 46.1 million dollars (Rs 207.45 crore) in the corresponding quarter previous fiscal.
The company said it acquired 26 new clients during the quarter and the number of active clients stood at 252 at the end of last quarter, compared to 239 clients in Q4 2006.
EPS for the quarter was up by 92.1 % at 0.20 dollars, it said.
Indian software firm Patni Computer Systems Ltd. expects wage hikes and a stronger rupee to shave about 4 % of its profit margin in the June quarter, a senior official said on Wednesday.
Salary increases of about 18-20 % for most staff in India will hurt margins by 3-3.2 %, while the rupee which rose to a fresh nine-year high, will have a 80-90 basis points impact, Chief Financial Officer Surjeet Singh said.
“I think the profit expectations will have to be scaled down if the rupee continues at these levels,” Singh told Reuters in an interview, adding it would also squeeze margins across the export-focused industry.
Patni, which counts General Electric Co. and ABN AMRO among its clients, had $190-$200 million in hedging at the end of the March quarter, he said.
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First Published: Wed, Apr 25 2007. 11 21 PM IST