Patni Sept qtr profit dips 14 pc; IT firm plans to hire 1,000

The company had posted a net profit of Rs 168 crore for the July-September quarter last year, Patni said in a filing to the Bombay Stock Exchange.

In the October-December quarter, Patni expects revenues to be in the range of USD 180-181 million and net income (excluding  hedging gains/losses) to be in the range of USD 22.5-23 million.

"The first reason for the dip was the special dividend payout which reduced the company's treasury corpus by about USD 200 million. Due to such reduction, other income has reduced by USD 1.5 million," the company said.

The payment of a special dividend pulled down the profit of the company during the September quarter. Larger industry peers like TCS and Infosys had reported strong double-digit growth in revenues in the quarter, reflecting a rebound in global technology spend.

"The overall results reflect cost and cash generation discipline, besides growth through identified areas and balance across portfolio. Strongly appreciating rupee remains an overall concern for the industry," Patni CFO Surjeet Singh said.

The company added 1,663 employees during the third quarter, taking its total headcount to 16,556 as of September 30. Patni plans to hire 1,000 people in the next quarter.
However, total income increased to Rs 871.58 crore during the September quarter of the current fiscal, as against Rs 818.8 crore in the same period last year.

The company added 13 new clients during the quarter, taking the number of its active clients to 282, compared to 280 in the previous quarter. Mark-to-Market (MTM) foreign exchange gains during the December quarter are expected to be in the range of USD 1.5 million, depending on currency movements, it said.

Revaluation and MTM forex gains in the reporting quarter stood at Rs 21.6 crore, compared to a forex gain of Rs 19.7 crore in the previous quarter. Taking into account a post-revaluation gain of USD 10.7 million, the company had overall cash and cash equivalents (including short-term investments) of Rs 1,416 crore at the end of the September quarter, compared to Rs 2,165.5 crore at the end of the same quarter in the previous year.

On a standalone basis, Patni has posted a net profit of Rs 148 crore for the September quarter, up 43 per cent in comparison to the same period last fiscal. Shares of Patni Computer today closed at Rs 465.30 on the BSE, up 0.01 per cent from the previous close.

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