Syntel net up 30% y-o-y
Nasdaq-listed Syntel, the business process outsourcing firm with operations in India, reported its second quarter results ended March 31, 2008.
The company’s net income for the second quarter ended June 30, 2008 was $17.4 million (Rs 74.8 crore) up 30.7 per cent compared to $13.3 million (Rs 57.2 crore) in the corresponding quarter last financial year.
For the first time the company’s revenue crossed the $100 million mark in a quarter. For the second quarter its revenue touched $103.4 million (Rs 444.6 crore) up 28.6 per cent from $80.4 million ( Rs.345.7 crores) in the prior-year period. Operating margins during the quarter were favorably impacted by depreciation in the Indian Rupee.
As guidance, the company updated its 2008 guidance to reflect revenue of $412 to $422 million and EPS in the range of $1.74 to $1.82.
Sequentially, its net income was down 14.7 per cent, as the first quarter of 2008 had a favourable one time tax reversal that added to the EPS-- but revenue grew by 5 per cent from $98.5 million (Rs 423.5 crore).
Keshav R Murugesh, President and COO, Syntel said, "While the timing of certain client spending decisions remains in question, several other operational trends continue to track favorably. These include key supply-side metrics, currency, pricing and the sales pipeline. Our focus is on leveraging our client base, strategic investments and market position to help drive top line acceleration which remains unchanged.”
Applications Outsourcing accounted for 64 per cent of total revenue, with knowledge process outsourcing (KPO) was at 20 per cent, e-Business contributed 13 per cent and Team Sourcing at three percent.
The company will be investing $45 million (around Rs 190 crore) in 2008 in Pune and Chennai SEZ campuses.