Syntel Inc, an information technology services and knowledge process outsourcing (KPO) firm, has reported a 34 per cent increase in its net income for the first quarter ended March 31, 2009 at $27.3 million (around Rs 137 crore) as compared to $20.4 million (around Rs 102 crore) for the corresponding period last year. During the quarter ended the company added four new clients this quarter.
Syntel's total revenue during the first quarter dropped by 2 per cent to $96.4 million (around Rs 484 crore), from $98.5 million (around Rs 495 crore). The company's gross margin was 46.5 per cent in the first quarter, as compared to 40.3 per cent in the prior-year period (620 basis points increase).
Based on current visibility levels and an exchange rate assumption of Rs 50 to the dollar, the company is updating 2009 guidance from revenue of $385 million (Rs 1,925 crore) to $425 million (Rs 2,125 crore) and EPS in the range of $1.66 to $2.08 to revenue of $385 million (Rs 1,925 crore) to $415 million (Rs 2,075 crore) and EPS in the range of $2.12 to $2.42, said Keshav R Murugesh, chief executive officer and president, Syntel.
He added, Syntel has invested close to $37 million (around Rs 185 crore) in 2008 and plans to invest around $35 million (Rs 175 crore) in 2009 as it makes progress on construction of its SEZ campuses in Pune and Chennai. Phase 1 with 2,300 seats in Pune is ready and operational and Phase 1 of our new Chennai campus having built up space of 6,50,000 sq.ft. and 5,000 seats will be ready by Q4 of 2009.
Syntel is going to heavily crash going forward. BPO has lost focus. Their partnership with US bank comes to an end in feb 2010. All big hitters from BPO have quit. Have lost 80% of domestic BPO business. Are losing a huge client in the Travel space. Major IT banking revenues going to be reduced. Chairman down to have talks..Think it is on the table before next year.
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