Patni Computer Sept quarter net dips 37.51%, shares rise

Patni Computer Sept quarter net dips 37.51%, shares rise

Mumbai: Patni Computer Systems posted a 37.51% fall in consolidated net profit for the September-ended quarter, but shares surged nearly 20% after the software and services provider reported a less-than-expected decline.

A Reuters’ poll of brokerages had forecast a net profit of Rs780.75 million, a 46% fall from the year ago quarter.

The IT firm’s percentage of revenue derived from top 10 customers decreased to 46.4% from 48.5% in the corresponding quarter of 2010, Patni said in a statement.

Its non-GAAP EBITDA for the quarter fell 1.4% to $35.7 million during the quarter from $36.2 million in the corresponding quarter of 2010, it said.

Indian mid-cap IT firms are likely to witness a muted growth in net profit and a squeeze in margins in July-September due to wage hikes, lateral hiring and the crisis in Europe.

A handful of them are, however, expected to surprise the market with quantum leap in profit, according to Reuters’ poll.

Cautious Outlook

The company, which follows a calendar year, does not see any cut back in existing projects but retained a “cautious" outlook for 2012 budgets in some verticals, it said in the statement.

The firm’s integration with iGATE Corp is “progressing smoothly", while attrition rate and pipeline building are trending in the “right direction," its chief executive officer and managing director Phaneesh Murthy was quoted in the statement.

In Jan, iGate said it would buy a majority stake in Patni Computer Systems for $1.2 billion, helping it to take on bigger rivals in the country’s export-driven IT services industry.

Patni Computer firm had a headcount was 17,853 as of 30 September, while it added two Fortune 1000 clients in the quarter.

At 3.17 pm, the company’s shares were up 15.2% at Rs336.00 a share in a weak Mumbai market.