Syntel Q2 net up 44% y-o-y

Improved stability and increased activity among the clients led Nasdaq listed outsourcing firm Syntel’s, net income for the second quarter ended June 30, 2009 jump 44 per cent to Rs 121 crore ($25 million), from Rs 84 crore ($17.4 million) in the corresponding quarter last year.

Revenue at Rs 481 crore ($100 million) dipped 3.2 per cent from Rs 497 crore in the same quarter ended June 30, 2008.

Sequentially, the net income of the company was down 11.8 per cent from Rs 137 crore ($27.3 million)— revenue were almost flat from Rs 484 crore ($96.4 million).

Syntel raised the low end of their guidance from $385 million to $395 million for the year. It expects 2009 revenue to be in the range of $395 to $415 million. It also increased EPS guidance, and now expect EPS in the range of $2.40 to $2.50 for 2009, up from the range of $2.12 to $2.42 last quarter. The company stated that this is based on their second quarter performance, current visibility levels and an exchange rate of 48.7 Rupees to the Dollar.

Syntel added 3 new customers in Q2 and two new hunting licenses, which takes the total number of preferred partnerships to 96.

“While the second quarter did bring some positive signs in the form of improved business stability, consistent pricing and increased client interactions, we have yet to see strong evidence of an overall pick-up in demand. For the most part, discretionary projects remain sidelined and we would not expect a positive change in discretionary work before the end of 2009,” said Keshav Murugesh, CEO of Syntel.