Patni net doubles

Foreign exchange gains and cost efficiencies helped Patni Computer Systems to post a two-fold rise in net profit at Rs 157 crore (India GAAP) for the first quarter ended March 31, compared to Rs 76.5 crore in the year-ago period.

Revenues were marginally up at Rs 781.6 crore, compared to Rs 776.4 crore in the same quarter last year.

On a sequential basis, net profit declined 23 per cent from Rs 205.5 crore, while revenues were marginally down from Rs 788.3 crore.

Patni forecast revenues of $171-172 million and net profit (excluding hedging gain/loss) of $27-28 million for the second quarter. The cautious outlook was due to supply-side constraints, said the company.

“Short-term supply side pressures in terms of higher-than-planned attrition was one of the challenges that we faced and they have been actioned for correctness. Overall, we are pleased with the performance for the quarter. Our guidance for next quarter reflects short-term caution than mid- to long-term trends,” Jeya Kumar, chief executive officer of Patni, said.

The company reported revaluation and mark-to-market foreign exchange gain of $4.8 million (Rs 21.43 crore), compared to a gain of $3.2 million (Rs 14.85 crore) in the previous quarter.

Patni reported attrition of 17.7 per cent, an indication of the improving business environment, leading to better employment opportunities. “We will be hiring 2,000- 3,000 employees for this year. We have announced a salary hike of 12 per cent for offshore employees and 3 per cent for onsite,” said Surjeet Singh, chief financial officer, Patni.