Patni Computer beats street; Q4 cons net up 75% QoQ
Patni Computer Systems, a subsidiary of i-Gate Corporation, has reported a consolidated net profit of Rs 200 crore in fourth quarter of calendar year 2011, showing massive growth of 139.5% as compared to Rs 83.5 crore in the previous quarter, as per Indian GAAP.
January 25, 2012 / 19:46 IST
Moneycontrol Bureau
Software services provider Patni Computer Systems reported a better-than-expected 75% sequential rise in consolidated net profit for the fourth quarter at Rs 146.15 crore, based on US-GAAP accounting standards.The iGATE Corp owned company's revenue in October-December was up 10% quarter-on-quarter at Rs 1,029.5 crore.Patni Computer's fourth quarter net profit was down 17% year-on-year due to income taxes of Rs 63.4 crore in Oct-Dec. Its revenue was up 25.5% from a year ago.According to Indian-GAAP numbers Patni's fourth quarter consolidated net profit more than doubled sequentially to Rs 200.42 crore. Revenue was up near 16% from the July-September quarter at Rs 1,009.20 crore.Its gross margins were at 40% in the three-month period, Patni said.Analysts on average had expected Patni to report a net profit of Rs 130 crore on revenue of Rs 1,000 crore, according to CNBC-TV18 poll.Patni said it added 16 new customers in the fourth quarter and had 26,523 employees as of Dec 31. Two deals above USD 200 million are also in the pipeline, it said.The company said it has invested USD 15 million in a new 260,000 square feet facility in Bangalore. A capital outlay of USD 120 million has also been approved to build a residential training facility along with a 5,000 member capacity delivery centre in Pune, campus expansion in Mumbai and extra phase in Bangalore. Meanwhile, iGATE has fixed a floor price of Rs 356.74 a share for delisting Patni. The company had said earlier this month that a special resolution to delist its shares had been approved by shareholders.As per the delisting proposal, equity shares of Patni would be delisted from the BSE and NSE, as well as its American Depository Receipts (ADRs) would be delisted from the New York Stock Exchange. US-based iGATE, backed by private-equity firm Apax Partners, had in January 2011 acquired a majority stake in Patni for USD1.2 billion.Patni Computer shares rose post the announcement and were up 2.3% at Rs 484.20 on NSE in noon trade on Wednesday. The stock had hit a 52-week high of Rs 502 earlier in the session. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
