Patni posts record earnings at $33 mn

Patni posts record earnings at $33 mn
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First Published: Thu, Jul 26 2007. 11 28 PM IST
Updated: Thu, Jul 26 2007. 11 28 PM IST
Bangalore: Patni Computer Systems Ltd, an Indian company that creates software for companies including Electrolux AB and MetLife Inc., said its second quarter profit doubled on foreign exchange gains and treasury income.
Net income climbed to $33.2 million (Rs133.8 crore) in the three months ended 30 June, from $16.7 million in the year ago period, the Mumbai-based company said on Thursday in a statement. Sales rose 14% to $163.3 million.
Third-quarter net income is forecast at between $18.5 million and $19 million on sales of as much as $168 million, the company said in an emailed statement. The forecast assumes the rupee’s exchange rate at 40.8 against the dollar.
“The results are better than expected due to other income and the forex gain,” said Diviya Nagarajan, an analyst at Motilal Oswal Securities in Mumbai. She maintained a “neutral” rating on the stock.
Patni Computer System Ltd’s foreign exchange gain for the second quarter was $8.6 million, from $2.6 million in the first quarter. Income other than from its main operations rose to $7.1 million because of increased fixed-maturity treasury investments, the company said in the statement. It added 25 clients in the quarter.
“We are open as far as hedging is concerned,” said Surjeet Singh, Patni’s CFO in a telephone interview. “The reason is we can take advantage if bouts of volatility come up. We see the rupee in the range of 40-41.” The current hedge is close to $215 million, which is higher than $190 million in the first quarter, Singh added.
Patni’s shares fell by 0.72% to Rs506.40 at close on the Bombay Stock Exchange.
Patni Computer, which prepares customized software and maintains computer systems for 180 customers in 15 countries, was founded in 1978.
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First Published: Thu, Jul 26 2007. 11 28 PM IST