While the short-term results may have volatility, the long-term prospects of the combined organisation post change of control are strong and compelling, Patni CEO Jeya Kumar said
Mumbai: Mid-sized IT firm Patni Computer Systems today reported a growth of 3.33% in consolidated net profit to Rs162.28 crore for the first quarter ended 31 March 2011 over Rs157.04 crore in the same period last year, Patni said in a filing to the Bombay Stock Exchange.
“Our performance during the quarter was in line with our expectations. Continued focus on serving our customers and all stakeholders along with integration planning process with iGate were the major highlights of the quarter. Our recent deal wins are reflective of our strategy to focus on differentiating in micro verticals,” reports PTI quoting Patni CEO Jeya Kumar.
Total income rose to Rs891.69 crore during the January-March quarter, against Rs812.10 crore in the same period year-ago.
While the short-term results may have volatility, the long-term prospects of the combined organisation post change of control are strong and compelling, Mr Kumar added.
The company has won four new multi-year multi-service contracts each worth $25-$30 million and the revaluation and mark-to-market forex gain for the quarter was at $5.5 million, compared to the forex gain of $8.1 million during the previous year.
During the quarter, Pan-Asia iGate and iGate Global Solution entered into a share and securities purchase agreement with the promoter group of Patni and General Atlantic Mauritius to acquire a 63% stake in the company at a price of Rs503.50 per share.
Subsequent to the agreement, iGate has made an open offer to acquire an additional 20% shareholding in Patni Computer at a price of Rs503.50 per share. The open offer, which commenced on 8th April, is scheduled to close today.
IT services, which contributed 76% to the company’s revenues in FY10-11, stood at $1,400 million, a sequential increase of 4.2% and a year-on-year increase of 20.1%
Mumbai: The country’s third largest software exporter Wipro today reported a growth of 13.77% in consolidated net profit for the quarter ended 31 March 2011, to Rs1,375.4 crore compared to Rs 1,208.9 crore for the fourth quarter of the previous fiscal, reports PTI.
“We have made good progress in creating a leaner, simpler and more customer-centric organisation structure. We believe our business strategy along with the new structure will deliver industry leading growth," Wipro chairman Azim Premji said in a statement.
IT services, which contributed 76% to the company’s revenues in FY10-11, stood at $1,400 million, a sequential increase of 4.2% and a year-on-year increase of 20.1%.
The company said it expects revenues from the IT services business to be in the range of $1,394 million to $1,422 million for the first quarter ending 30 June 2011.
The IT services segment hired 2,894 people in the quarter under review and 14,314 people during the entire financial year, taking the total headcount to 1,22,385 employees as of 31 March 2011. It added 68 new customers for the reporting quarter and 155 new customers during the year.
“The business environment is positive and we are focusing on growth by directing investments on momentum verticals. We have announced wage hikes effective 1 June 2011, which would have an impact on the operating margins,” Wipro executive director and chief financial officer Suresh Senapaty said.
Net income from sales for the reporting quarter stood at Rs8,302.4 crore as against Rs7,016.1 crore in Q4, FY09-10, up 18.33%.
For the fiscal ended March 2011, the company registered a net profit of Rs5,297.7 crore, compared to Rs4,593.1 crore during the previous fiscal, up 15.34%.
Net income from sales in the 2010-11 fiscal grew 14.51% to Rs31,098.7 crore from Rs27,157.4 in the previous fiscal.
On a standalone basis, the company reported a net profit of Rs1,337.6 crore for the quarter, a growth of 8.15% vis-à-vis the same period last year.
“Our journey of building the new Wipro is based on the foundation of customer focus, domain and technology leadership directed toward the customer needs and providing enriching career opportunities for our employees,” Wipro executive director and CEO (IT Business) TK Kurien said.
The company’s cash and cash equivalents stood at Rs6,114.1 crore as on 31 March 2011.
IT products comprised 12% of the total company revenue at Rs3,691 crore for the year, a decline of 3% y-o-y. Revenue for the quarter stood at Rs911 crore.