Syntel Q2 Net up 24.8 pc at USD 59.3 mn

IT services firm Syntel today reported a 24.8 per cent rise in net profit at USD 59.3 million for the second quarter ended June 30, 2014.
The NASDAQ-listed firm had posted a net profit of USD 47.5 million in the year-ago period, it said in a release.
Revenue for the second quarter rose by 13 per cent to USD 228.3 million against to USD 202.5 million in the second quarter of 2014. It follows January-December fiscal.
Its revenue increased by four per cent sequentially from USD 219.5 million in the first quarter of 2014.
During the April-June quarter, Banking and Financial Services accounted for 49 per cent of total revenue, with Healthcare and Life Sciences at 17 per cent, Retail, Logistics and Telecom at 16 per cent, Insurance at 15 per cent and Manufacturing at three per cent.

Commenting on the firm's performance, Syntel CEO and President Nitin Rakesh said: "We continued to make steady progress during the second quarter amid dynamic shifts in the technology landscape. These shifts are driving a need for digital transformation and a demand for innovative solutions across our customer base."

Based on current visibility levels and an exchange rate assumption of Rs 60 to the US dollar, the company raised the lower end of 2014 revenue guidance by USD 5 million from the prior quarter to USD 920 million.
It now expects 2014 revenue to be in the range of USD 920 to USD 940 million.

During Q2, Syntel spent USD 4.3 million in CAPEX, largely in support of campus infrastructure, and finished the quarter with cash and short-term investments of USD 769.8 million.
The firm's global headcount stood at 24,122 on June 30, 2014, up 5 per cent versus prior year, it said.