Syntel Q2 net income increases to 44% y-o-y to $25.1 mn

Increase in Q2 revenue by 4% to $100.1 mn

Syntel, Inc. (NASDAQ: SYNT), a global information technology services and Knowledge Process Outsourcing (KPO) firm, today announced financial results for the second quarter ended June 30, 2009.

Syntel's total revenue for the second quarter increased 4 percent to $100.1 million (Rs.481 crore), compared to $96.4 million (Rs.464 crore) in the first quarter of 2009 and decreased 3% compared to $103.4 million (Rs 497 crore) in the prior year period. The Company's gross margin was 48.2 percent in the second quarter, compared to 41.1 percent in the prior-year period (710 bps increase).

Syntel's income from operations expanded to 27.4 percent in the second quarter, compared to 22.1 percent in the prior-year period (530 bps increase) .

Net income for the second quarter was $25.1 million (Rs.121 crore) or $0.61 per diluted share, compared to $17.4 million (Rs.84 crore) or $0.42 per diluted share in the prior-year period.

During the second quarter, Syntel added 3 new clients and two new "Hunting Licenses" or preferred partnership agreements, bringing the total number to 96 strategic relationships.

Operational highlights

“Syntel was encouraged by improved stabilization in the marketplace and the increasingly positive discussions initiated with our clients during the quarter,” said Keshav R Murugesh, Chief Executive Officer& President, Syntel. “While discretionary projects remain sidelined, customers are beginning to once again look at cost reduction initiatives which are aligned with their longer-term strategic objectives.”