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| [July 24, 2008] |
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Patni's Q2'CY2008 Revenues at US$ 182.6 Million Up 11.8% YoY
MUMBAI, India --(Business Wire)-- Patni Computer Systems Limited (Patni) today announced its financial results for the second quarter ended 30th June 2008.
Performance Highlights for the quarter ended June 30, 2008
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-- Revenues for the quarter at US$ 182.6 million (Rs. 7,837.1 million)
-- Up 11.8% YoY from US$ 163.3 million (Rs. 6,628.1 million)
-- Up 3.5% sequentially from US$ 176.4 million (Rs. 7,061.2
million)
-- Contribution from top customer at 10.4% for the quarter from
11.1% during the previous quarter
-- Operating Income for the quarter at US$ 16.8 million (Rs. 720.7
million)
-- Down 48.1% YoY from US$ 32.4 million (Rs. 1,313.5 million)
-- Down 3.1% sequentially from US$ 17.3 million (Rs. 693.4 million)
-- Net Income for the quarter at US$ 24.2 million (Rs. 1,037.2
million)
-- Down 27.2% YoY from US$ 33.2 million (Rs. 1,347.6 million)
-- Up 33.4% sequentially from US$ 18.1 million (Rs. 724.6 million)
-- EPS for the quarter at US$ 0.17 per share (US$ 0.35 per ADS)
-- Stock Buy Back execution started as of July 10th 2008.
-- Stock based expenses in Q2 CY2008 were at US$ 1.0 million compared
to US$ 1.1 million in the previous sequential quarter
Future Outlook:
-- Q3 CY2008 revenues are expected to be at US$ 182 to US$ 183 million
and net income (excluding the foreign exchange gain/loss) is
expected to be in the range of US$ 18.0 to US$ 18.5 million taking
the operations at a constant dollar value of Rs 42 per US$ for the
quarter.
Management Comments
Commenting on the quarter, Mr. Narendra K Patni, Chairman and CEO, Patni Computer Systems Ltd., said, "While our revenues and margins were in line with guidance the overall market environment remains challenging with prevailing global uncertainties. We are cautious in our short term outlook but remain positive on long term prospects of our business and are continuing our investments in identified areas."
The newly appointed Executive Director Mr. Loek van den Boog said, "The global information technology services industry is going through a significant change. We have proactively identified key strategic areas for differentiated investment and focus which we believe will act as growth drivers and enable long-term, sustainable and profitable growth. We have also made corporate and operating management changes to strengthen the execution of all spheres of our business and I am very confident that these will yield the desired results."
Speaking on the occasion, Mr. Surjeet Singh, Chief Financial and Operations Officer, said, "The overall growth visibility is low in light of continued market uncertainties in various segments of our business specially in North America. The currency movement was volatile during the quarter but we managed our risks well through our hedging operations. We continue to make investments in geographical expansion in Europe and emerging markets to diversify our revenue portfolio besides continuing to invest to strengthen our services and portfolio."
Corporate Developments
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-- Corporate Management Changes
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-- Mr. Surjeet Singh, previously CFO, has been promoted as Chief
Financial and Operations Officer He will also now manage global
operations and infrastructure in addition to finance and
internal systems.
-- Mr. Neeraj Gupta, previously EVP-Communications and Media
business, has been appointed as Chief Commercial Officer and
Head of Global Client Relations responsible for global sales
and marketing across geographies and vertical markets.
-- Awards
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-- Patni has won the 'Economic times - Smart Workplace Awards'
under the "Professional Services" category. The award is
designed to recognize and celebrate organization that are
'Smart' i.e. who adopt the best technological and HR practices.
(Figures in Million US$ except EPS and Share Data)
UNAUDITED CONSOLIDATED STATEMENT OF INCOME
For the quarter / period ended
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Particulars Jun 30 2008 Jun 30 2007 YoY Change %
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Revenue 182.6 163.3 11.8%
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Cost of revenues 122.7 105.7 16.0%
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Depreciation 4.5 4.7 -3.7%
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Gross Profit 55.4 52.9 4.6%
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Sales and marketing expenses 13.8 11.9 16.5%
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General and administrative
expenses 19.8 16.7 18.5%
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Provision for doubtful debts and
advances 0.2 0.5 -57.1%
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Foreign exchange (gain)/loss, net 4.7 (8.6) -154.8%
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Operating income 16.8 32.4 -48.1%
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Other income/(expense), net 11.3 7.1 60.3%
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Income before income taxes 28.1 39.4 -28.7%
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Income taxes 4.0 6.2 -36.5%
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Net income/(loss) 24.2 33.2 -27.2%
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Earning per share
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- Basic $0.17 $0.24 -27.5%
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- Diluted $0.17 $0.24 -26.9%
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Weighted average number of common
shares used in computing
earnings per share
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- Basic 139,061,109 138,646,132
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- Diluted 139,295,007 139,978,442
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Particulars Mar 31 2008 QoQ Change % 2007
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Revenue 176.4 3.5% 662.9
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Cost of revenues 121.0 1.4% 432.3
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Depreciation 4.8 -7.4% 17.8
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Gross Profit 50.6 9.5% 212.8
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Sales and marketing expenses 12.3 11.9% 45.8
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General and administrative
expenses 18.7 6.1% 70.4
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Provision for doubtful debts and
advances (0.0) -1711.1% 1.2
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Foreign exchange (gain)/loss, net 2.2 111.1% (23.4)
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Operating income 17.3 -3.1% 118.7
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Other income/(expense), net 3.7 205.4% 17.0
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Income before income taxes 21.0 33.7% 135.8
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Income taxes 2.9 35.0% 21.8
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Net income/(loss) 18.1 33.4% 114.0
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Earning per share
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- Basic $0.13 33.4% $0.82
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- Diluted $0.13 33.4% $0.82
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Weighted average number of common
shares used in computing
earnings per share
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------
- Basic 139,030,296 138,660,785
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- Diluted 139,279,675 139,569,933
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Financial Statements Analysis:
Revenues
Revenues during the quarter were marginally ahead of guidance at US$ 182.6 million (Rs.7,837.1 million), representing a sequential increase of 3.5% and 11.8% increase on YoY basis in US dollar terms. We are focusing on EMEA region and our share of Europe and Middle East business has increased to 18.7% from 16.2% in Q2'07.
Gross Margin
Gross Margins were at 30.3% or US$ 55.4 million (Rs.2,377.5 million) against 28.7% or US$ 50.6 million (Rs.2,024.7 million) in the previous quarter with positive operating impact of 1.7% due to Rupee depreciation, positive impact of 1% due to improvements in utilization and negative impact of approx. 2% due to compensation increase
-- Depreciation and amortization expenses in CGS were US$ 5.0 million against US$ 5.4 million in Q1 2008 and US$ 4.7 million in Q2 2007.
Selling General and Administrative Expenses (SGA Expenses)
-- Sales and marketing expenses during the quarter were at US$ 13.8 million (Rs. 593.2 million) at 7.6% as compared to US$ 12.3 million (Rs. 494.1 million) at 7.0% in the previous quarter(period cost change)
-- G&A expenses during the quarter were at US$ 19.8 million (Rs.852.0 million) at 10.9% as compared to US$ 18.7 million (Rs.748.7 million) at 10.6% in the previous quarter.
-- Overall Depreciation and Amortization expenses in SGA were US$ 2.1 million for the quarter as against US$ 2.0 million in Q1 2008.
Foreign exchange gain/loss
The revaluation and mark to market foreign exchange loss for the quarter US$ 4.7 million (Rs. 201.6 million) as compared to foreign exchange loss of US$ 2.2 million (Rs.89.0 million) in the previous quarter.
The quarter end rate for debtor's revaluation was Rs.43.02. Outstanding contracts at the end of Q208 were about US$ 395.5 million contracted in the range of Rs.39.77 to Rs.44.10.
Other Income
For Q2 CY2008, other income (including interest and dividend income net of interest expenses, profit/loss on sale of investments and other miscellaneous income) stood at 6.2% or US$ 11.3 million (Rs.486.2 million) as compared to 2.1% or US$ 3.7 million (Rs. 148.4 million) in the previous quarter.
Profit before Tax
PBT was up 33.7% sequentially at US$ 28.1 million (Rs. 1,206.9 million) against US$ 21.0 million (Rs. 841.8 million) in the previous quarter mainly due to rupee depreciation and other income.
Income Taxes
Income tax for the quarter was at US$ 4.0 million (Rs. 169.7 million) at an effective tax rate of 14.1%.
Net Income
Consequently, net income for the quarter at 13.2% was US$ 24.2 million (Rs.1,037.2 million) against US$ 18.1 million (Rs.724.6 million) at 10.3% in the previous quarter.
Balance Sheet and Cash Flow changes
During the quarter, against net income of US$ 24.2 million (Rs.1,037.2 million), cash from operating activities was at US$ 55.0 million (Rs. 2,359.3 million) net of changes in current assets and liabilities of US$ 35.8 million and non cash income of US$ 5.0 million. These non cash charges comprise of depreciation and amortization of US$ 7.0 million, and other charges including stock option cost and gain on sale of securities of US$(-) 12.0 million.
Net cash from investing activities was US$ 31.8 million (Rs.1,365.2 million) including capital expenditure of US$ 13.0 million (Rs.560.2 million), net proceeds from sale of investments of US$ 18.8 million (Rs. 805.0 million).
Net Cash outflow on financing activities was US$ 0.1 million (Rs.3.0 million) comprising of other financing activities. Over all cash and cash equivalents (including short term investments) were at US$ 343.9 million (Rs.14,762.8 million),compared to US$ 326.1 million (Rs.13,050.7 million) at close of Q1 2008.
Receivables at the end of Q2 2008 were at US$ 116.5 million as compared to US$ 136.8 million at the end of Q1 2008. Number of days outstanding (Including Unbilled) for the current quarter were 89 days as compared to 95 days in Q1 2008.
Figures in Million INR except EPS and Share Data
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CONSOLIDATED STATEMENT OF INCOME : BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
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Particulars Jun 30 2008 Jun 30 2007 Mar 31 2008 2007
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Exchange rate$1 =
INR 42.93 40.58 40.02 39.41
Revenues 7,837.1 6,628.1 7,061.2 26,125.3
Cost of revenues 5,267.0 4,290.7 4,842.7 17,035.3
Depreciation 192.5 189.0 193.9 702.5
Gross Profit 2,377.5 2,148.4 2,024.7 8,387.5
Sales and marketing
expenses 593.2 481.3 494.1 1,805.5
General and
administrative
expenses 852.0 679.5 748.7 2,776.3
Provision for
doubtful debts and
advances 10.0 21.9 (0.6) 46.6
Foreign exchange
(gain)/loss, net 201.6 (347.9) 89.0 (920.3)
Operating income 720.7 1,313.5 693.4 4,679.4
Other
income/(expense),
net 486.2 286.7 148.4 670.9
Income before
income taxes 1,206.9 1,600.2 841.8 5,350.3
Income taxes 169.7 252.7 117.2 858.5
Net income/(loss) 1,037.2 1,347.6 724.6 4,491.8
Earning per share
- Basic 7.46 9.72 5.21 32.39
- Diluted 7.45 9.63 5.20 32.18
Weighted average
number of common
shares used in
computing earnings
per share
- Basic 139,061,109 138,646,132 139,030,296 138,660,785
- Diluted 139,295,007 139,978,442 139,279,675 139,569,933
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Important Notes to this release:
- Fiscal Year
Patni follows a January - December fiscal year. The current review covers the financial and operating performance of the Company for the second quarter ended 30th June 2008.
- U.S. GAAP
A Consolidated Statement of Income in US GAAP is available on page 3 of the Fact Sheet attached to this release.
- Percentage analysis
Any percentage amounts, as set forth in this release, unless otherwise indicated, have been calculated on the basis of the U.S. Dollar amounts derived from our consolidated financial statements prepared in accordance with U.S. GAAP, and not on the basis of any translated Rupee amount. Calculation of percentage amounts on the basis of Rupee amounts may lead to results that are different, in a material way, from those calculated as per U.S. Dollar amounts.
- Convenience translation
A Consolidated Statement of Income as per Convenience Translation prepared in accordance with US GAAP is available on page 8 of the Fact Sheet attached to this release. We have translated the financial data derived from our consolidated financial statements prepared in accordance with U.S. GAAP for each period at the noon buying rate in the City of New York on the last business day of such period for cable transfers in Rupees as certified for customs purposes by the Federal Reserve Bank of New York. The translations should not be considered as a representation that such US Dollar amounts have been, could have been or could be converted into Rupees at any particular rate, the rate stated elsewhere in this document, or at all. Investors are cautioned to not rely on such translated amounts.
- Attached Fact Sheet (results & analysis tables)
About Patni Computer Systems Ltd:
Patni Computer Systems Limited (BSE:PATNI COMPUT) (NSE:PATNI) (NYSE:PTI) is a global provider of IT Services and business solutions, servicing Global 2000 clients. Patni caters to its clients through its industry focused practices, including insurance, financial services, manufacturing, life sciences, telecommunications and media & entertainment, and its technology-focused practices. With an employee strength of over 15,000; multiple global delivery centres spread across 11 cities worldwide; 22 international offices across the Americas, Europe and Asia-Pacific; Patni has registered revenues of US$ 663 million for the year 2007. Patni's service offerings include application development and maintenance, enterprise application solutions, business and technology consulting, product engineering services, infrastructure management services, customer interaction services & business process outsourcing, quality assurance and engineering services. Committed to quality, Patni adds value to its client's businesses through well-established and structured methodologies, tools and techniques. Patni is an ISO 9001: 2000 certified and SEI-CMMI Level 5 (V 1.2) organization, assessed enterprise wide at P-CMM Level 3. In keeping with its focus on continuous process improvements, Patni adopts Six Sigma practices as an integral part of its quality and process frameworks. For more information on Patni, visit www.patni.com.
IMPORTANT NOTE:
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, liability for damages on our service contracts, the success of the companies in which Patni has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
PATNI COMPUTER SYSTEMS LIMITED
FINANCIAL AND OPERATIONS INFORMATION FOR THE
SECOND QUARTER ENDED JUN 30, 2008
July 24, 2008
NOTES:
-- Fiscal Year
Patni follows a January - December fiscal year. The current
review covers the financial and operating performance of the
Company for the quarter ended Jun 30, 2008.
-- U.S. GAAP
All figures in this release pertain to accounts presented as
per U.S. GAAP unless stated otherwise.
-- Percentage analysis
Any percentage amounts, as set forth in this release, unless
otherwise indicated, have been calculated on the basis of the
U.S. Dollar amounts derived from our consolidated financial
statements prepared in accordance with U.S. GAAP, and not on
the basis of any translated Rupee amount. Calculation of
percentage amounts on the basis of Rupee amounts may lead to
results that are different, in a material way, from those
calculated as per U.S. Dollar amounts.
-- Convenience translation
We have translated the financial data derived from our
consolidated financial statements prepared in accordance with
U.S. GAAP for each period at the noon buying rate in the City
of New York on the last business day of such period for cable
transfers in Rupees as certified for customs purposes by the
Federal Reserve Bank of New York. The translations should not
be considered as a representation that such US Dollar amounts
have been, could have been or could be converted into Rupees
at any particular rate, the rate stated elsewhere, or at all.
Investors are cautioned to not rely on such translated
amounts.
-- Reclassification
Certain reclassifications have been made in the financial
statements of prior years to conform to classifications used
in the current year.
A1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ '000)
For the quarter / period ended
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Particulars Jun 30 2008 Jun 30 2007 YoY Change %
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Revenue 182,555 163,334 11.8%
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Cost of revenues 122,689 105,735 16.0%
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Depreciation 4,484 4,657 -3.7%
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Gross Profit 55,382 52,942 4.6%
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Sales and marketing expenses 13,819 11,860 16.5%
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General and administrative
expenses 19,847 16,745 18.5%
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Provision for doubtful debts
and advances 232 541 -57.1%
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Foreign exchange (gain) /
loss, net 4,696 (8,572) -154.8%
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Operating income 16,788 32,368 -48.1%
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Other income / (expense), net 11,325 7,066 60.3%
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Income before income taxes 28,113 39,434 -28.7%
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Income taxes 3,954 6,226 -36.5%
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Net income/(loss) 24,159 33,208 -27.2%
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Earning per share
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- Basic $ 0.17 $ 0.24 -27.5%
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- Diluted $ 0.17 $ 0.24 -26.9%
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Weighted average number of
common shares used in
computing earnings per share
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- Basic 139,061,109 138,646,132
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- Diluted 139,295,007 139,978,442
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Particulars Mar 31 2008 QoQ Change % 2007
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Revenue 176,443 3.5% 662,912
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Cost of revenues 121,007 1.4% 432,259
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Depreciation 4,845 -7.4% 17,826
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Gross Profit 50,591 9.5% 212,827
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Sales and marketing expenses 12,346 11.9% 45,813
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General and administrative
expenses 18,708 6.1% 70,447
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Provision for doubtful debts
and advances (14) -1711.1% 1,182
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Foreign exchange (gain) /
loss, net 2,225 111.1% (23,351)
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Operating income 17,326 -3.1% 118,736
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Other income / (expense), net 3,709 205.4% 17,024
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Income before income taxes 21,035 33.7% 135,760
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Income taxes 2,929 35.0% 21,784
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Net income/(loss) 18,106 33.4% 113,976
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Earning per share
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- Basic $ 0.13 33.4% $ 0.82
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- Diluted $ 0.13 33.4% $ 0.82
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Weighted average number of
common shares used in
computing earnings per share
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- Basic 139,030,296 138,660,785
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- Diluted 139,279,675 139,569,933
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A2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (US$ '000)
Particulars As on As on As on
30-Jun-08 31-Mar-08 30-Jun-07
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Assets
Total current assets 542,088 538,097 529,718
Goodwill 66,683 66,664 51,246
Intangible assets, net 29,642 30,752 9,163
Property, plant, and equipment, net 172,967 180,305 159,000
Other assets 42,892 40,776 19,692
Total assets 854,272 856,594 768,819
Liabilities
Total current liabilities 159,112 117,056 145,054
Capital lease obligations excluding
current installments 298 298 280
Other liabilities 50,980 50,431 13,222
Total liabilities 210,390 167,785 158,556
Total shareholders' equity 643,882 688,809 610,262
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Total liabilities & shareholders' equity 854,272 856,594 768,819
==============================================================
========
A3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (US$ '000)
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Particulars Jun 30 Mar 31 Jun 30
2008 2008 2007 2007
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Net cash provided by operating
activities 54,956 15,991 36,173 111,272
Net cash used in investing
activities (31,800) (8,341) (9,406) (130,036)
Capital expenditure, net (13,049) (16,495) (18,484) (61,333)
Investment in securities, net (18,751) 8,154 9,078 (14,774)
Investment in subsidiary incl
tax benefit on incentive stock
option of Patni Telecom - - - (53,929)
Net cash provided / (used) in
financing activities (70) 111 (10,063) (8,682)
Others (74) (76) (114) (430)
Common shares issued, net of
expenses incl tax benefit
arising on exercise of stock
options 4 186 224 3,681
Dividend on common shares (0) 1 (10,174) (11,933)
Net increase / (decrease) in
cash and equivalents 23,086 7,761 16,704 (27,446)
Effect of exchange rate changes
on cash and equivalents (6,959) (1,403) 7,511 13,562
Cash and equivalents at the
beginning of the period 38,984 32,626 37,607 46,510
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Cash and equivalents at the end
of the period 55,111 38,984 61,822 32,626
===============================================================
=======
B1) AUDITED CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS. '000)
For the quarter / period ended
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Particulars Jun 30 2008 Jun 30 2007 YoY Change %
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--
Sales and service income 7,673,051 6,587,768 16.5%
Other income 493,205 331,138 48.9%
Total income 8,166,256 6,918,906 18.0%
Staff costs 4,488,811 3,871,450 15.9%
Selling, general and
administration expenses 2,397,345 1,255,048 91.0%
Interest 32,410 38,699 -16.3%
Total expenditure 6,918,566 5,165,197 33.9%
Net profit before tax and
adjustments 1,247,690 1,753,709 -28.9%
Provision for taxation 56,420 274,222 -79.4%
Profit/(loss) for the year after
taxation 1,191,270 1,479,487 -19.5%
Profit and loss account, brought
forward 15,362,059 11,993,647 28.1%
Add: Adjustment on account of
Employee Benefits - -
Amount available for
appropriation 16,553,329 13,473,134 22.9%
Proposed dividend on equity
shares - 1,144
Dividend on equity shares of
subsidiary 158
Dividend tax 27 12,515
Transfer to general reserve
Profit and loss account, carried
forward 16,553,144 13,459,475 23.0%
Earning per share (Rs. per equity
share of Rs. 2 each)
- Basic 8.57 10.67 -19.7%
- Diluted 8.55 10.54 -18.9%
Weighted average number of common
shares used in computing
earnings per share
-------------------------------------
- Basic 139,061,109 138,646,132
-------------------------------------
- Diluted 139,296,098 140,340,936
=====================================
Particulars Mar 31 2008 QoQ Change % 2007
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Sales and service income 6,933,510 10.7% 26,911,455
Other income 180,372 173.4% 864,854
Total income 7,113,882 14.8% 27,776,309
Staff costs 4,072,655 10.2% 15,389,630
Selling, general and
administration expenses 2,075,303 15.5% 6,394,791
Interest 33,988 -4.6% 147,225
Total expenditure 6,181,946 11.9% 21,931,646
Net profit before tax and
adjustments 931,936 33.9% 5,844,663
Provision for taxation 130,762 -56.9% 1,008,401
Profit/(loss) for the year after
taxation 801,174 48.7% 4,836,262
Profit and loss account, brought
forward 14,560,885 5.5% 10,646,309
Add: Adjustment on account of
Employee Benefits - (32,606)
Amount available for
appropriation 15,362,059 7.8% 15,449,965
Proposed dividend on equity
shares - 418,173
Dividend on equity shares of
subsidiary -
Dividend tax - 83,389
Transfer to general reserve - 387,518
Profit and loss account, carried
forward 15,362,059 7.8% 14,560,885
Earning per share (Rs. per
equity share of Rs. 2 each)
- Basic 5.76 48.7% 34.88
- Diluted 5.75 48.7% 34.54
Weighted average number of
common shares used in computing
earnings per share
--------------------------------------
- Basic 139,030,296 138,660,785
--------------------------------------
- Diluted 139,279,675 140,036,922
======================================
[
FEED_CRLF]B2) AUDITED CONSOLIDATED BALANCE SHEET - INDIAN GAAP (RS. '000):
---------------------------------------------------------------
-------
Particulars As on As on As on
30-Jun-08 31-Mar-08 30-Jun-07
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----------
Assets
Current assets, loans and advances 11,262,210 10,418,387 10,414,510
Goodwill 4,553,256 4,329,992 3,705,687
Fixed assets (Net of Depreciation) 9,030,885 8,791,635 6,888,925
Investments 12,368,013 11,204,083 10,861,216
Deferred tax asset, net 765,339 601,814 429,501
Total assets 37,979,703 35,345,911 32,299,839
Liabilities
Current liabilities and provisions 8,855,433 7,163,890 6,341,723
Secured loans 23,252 22,462 24,679
Deferred tax liability, net 31,477 37,786 -
Total liabilities 8,910,162 7,224,138 6,366,402
Total shareholders' equity 29,069,541 28,121,773 25,933,437
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-----------
Total liabilities & shareholders'
equity 37,979,703 35,345,911 32,299,839
===========================================================
===========
B3) AUDITED CONSOLIDATED CASH FLOW STATEMENT - INDIAN GAAP (RS '000)
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------
Particulars Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
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Cash flows from /
(used in) operating
activities (A) 2,247,977 494,065 1,379,839 4,119,867
Cash flows used in
investing activities
(B) (1,216,196) (189,675) (261,690) (4,821,651)
Cash flows from /
(used in) from
financing activities
(C) 230 3,881 (415,533) (363,378)
Effect of changes in
exchange rates (D) (225,446) (29,799) 179,631 290,421
--------------------------------------------------------------
--------
Net decrease in cash
and cash equivalents
during the period
(A+B+C+D) 806,565 278,472 882,247 (774,741)
------------------------------------------------------------
----------
-----------------------------------------------------------
-----------
Cash and cash
equivalents at the
beginning of the
period 1,564,329 1,285,857 1,635,385 2,060,598
------------------------------------------------------------
----------
-----------------------------------------------------------
-----------
Cash and cash
equivalents at the
end of the period 2,370,894 1,564,329 2,517,632 1,285,857
============================================================
==========
C) Reconciliation of Income as per Indian GAAP and US GAAP(RS. '000):
---------------------------------------------------------------
-------
Particulars Jun 30 2008 Jun 30 2007 Mar 31 2008 2007
-----------------------------------------------------------------
-----
Consolidated net income
as per Indian GAAP 1,191,270 1,479,487 801,174 4,836,262
Acquisition of entity
under common control - - - -
Income taxes (116,804) 7,861 1,386 65,622
Fixed assets and
depreciation -
Amortisation of
miscellaneous
expenditure - - - -
Foreign currency
differences 2,942 (86,717) - 114,235
Employee retirement
benefits (15,070) 19,636 (26,089) (77,408)
ESOP related
Compensation Cost (40,909) (44,560) (43,659) (192,446)
Short provision for
branch profit taxes in
earlier years under
Indian GAAP - - - -
Provision for decline
in fair value of
investment - - - -
Amortisation of
Intangibles, arising
on Business
acquisition (16,729) (9,793) (15,983) (45,926)
Prior period adjustment
- Impact of prior
period tax estimate - - - -
Others 914 3,522 3,252 10,379
Total (185,656) (110,051) (81,093) (125,544)
------------------------------------------------------------
----------
Consolidated net income
as per US GAAP 1,005,614 1,369,436 720,081 4,710,718
============================================================
==========
D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME (RS. '000): BASED ON
CONVENIENCE TRANSLATION
For the quarter / period ended
----------------------------------------------------------------
------
Particulars Jun 30 2008 Jun 30 2007 Mar 31 2008 2007
-----------------------------------------------------------------
-----
Exchange rate$1 =
INR 42.93 40.58 40.02 39.41
Revenues 7,837,082 6,628,074 7,061,249 26,125,349
Cost of revenues 5,267,018 4,290,713 4,842,700 17,035,344
Depreciation 192,514 188,973 193,897 702,511
Gross Profit 2,377,550 2,148,388 2,024,652 8,387,494
Sales and marketing
expenses 593,239 481,320 494,087 1,805,475
General and
administrative
expenses 852,004 679,504 748,694 2,776,338
Provision for
doubtful debts and
advances 9,968 21,939 (560) 46,573
Foreign exchange
(gain ) / loss,
net 201,589 (347,864) 89,045 (920,258)
Operating income 720,750 1,313,489 693,386 4,679,366
Other income /
(expense), net 486,200 286,736 148,434 670,916
Income before
income taxes 1,206,950 1,600,225 841,820 5,350,282
Income taxes 169,700 252,660 117,219 858,506
Net income/(loss) 1,037,250 1,347,565 724,601 4,491,776
Earning per share
- Basic 7.46 9.72 5 32.39
- Diluted 7.45 9.63 5 32.18
Weighted average
number of common
shares used in
computing earnings
per share
- Basic 139,061,109 138,646,132 139,030,296 138,660,785
- Diluted 139,295,007 139,978,442 139,279,675 139,569,933
==========================================================
============
D2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (RS. '000): BASED ON
CONVENIENCE TRANSLATION
----------------------------------------------------------
------------
Particulars As on As on As on
30-Jun-08 31-Mar-08 30-Jun-07
------------------------------------------------------------
----------
Exchange rate$1 = INR 42.93 40.02 40.58
Assets
Total current assets 23,271,835 21,534,642 21,495,966
Goodwill 2,862,709 2,667,893 2,079,563
Intangible assets, net 1,272,496 1,230,695 371,823
Property, plant, and equipment, net 7,425,484 7,215,806 6,452,229
Other assets 1,841,359 1,631,856 799,089
Total assets 36,673,883 34,280,892 31,198,670
Liabilities
Total current liabilities 6,830,697 4,684,581 5,886,300
Capital lease obligations excl.
installments 12,774 11,926 11,370
Other liabilities 2,188,567 2,018,249 536,549
Total liabilities 9,032,038 6,714,756 6,434,219
Total shareholders' equity 27,641,845 27,566,136 24,764,451
Total liabilities & shareholders'
equity 36,673,883 34,280,892 31,198,670
===========================================================
===========
D3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (RS '000): BASED
ON CONVENIENCE TRANSLATION
----------------------------------------------------------
------------
Particulars Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Exchange rate $1 = INR 42.93 40.02 40.58 39.41
Net cash provided by
operating activities 2,359,259 639,960 1,467,914 4,385,238
Net cash used in
investing activities (1,365,182) (333,807) (381,692) (5,124,701)
Capital expenditure,
net (560,189) (660,130) (750,073) (2,417,143)
Investment in
securities, net (804,993) 326,323 368,381 (582,226)
Investment in
subsidiary, net of
cash acquired - - - (2,125,332)
Net cash provided /
(used) in financing
activities (3,006) 4,442 (408,377) (342,167)
Others (3,192) (3,042) (4,624) (16,946)
Common shares issued,
net of expenses 188 7,444 9,102 145,074
Dividend on common
shares (1) 40 (412,855) (470,295)
Net increase /
(decrease) in cash
and equivalents 991,071 310,595 677,845 (1,081,630)
Effect of exchange
rate changes on cash
and equivalents (298,763) (56,148) 304,798 534,461
Cash and equivalents
at the beginning of
the period 1,673,596 1,305,693 1,526,084 1,832,959
Cash and equivalents
at the end of the
period 2,365,904 1,560,140 2,508,727 1,285,790
============================================================
==========
E1) REVENUE ANALYSIS
-------------------------------------------------------------
---------
Revenue By Geographical
Segments Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Americas 76.1% 76.6% 78.7% 79.0%
EMEA 18.7% 17.7% 16.2% 16.1%
APAC 5.1% 5.7% 5.1% 4.9%
-----------------------------------------------------------------
-----
Total 100.0% 100.0% 100.0% 100.0%
===============================================================
=======
--------------------------------------------------------------
--------
Revenue by Industry
Verticals Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Insurance 23.3% 23.2% 23.6% 23.6%
Manufacturing 24.9% 24.6% 22.0% 23.7%
Financial Services 12.8% 12.9% 14.6% 14.1%
Communications, Media &
Entertainment 14.2% 13.4% 14.1% 13.5%
Growth Industries 9.3% 9.6% 8.4% 8.3%
Product Engineering
Services 15.6% 16.4% 17.3% 16.8%
----------------------------------------------------------------
------
Total 100.0% 100.0% 100.0% 100.0%
===============================================================
=======
--------------------------------------------------------------
--------
Revenue by Service
Offerings Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Application Development &
Maintenance 61.9% 64.6% 64.4% 64.9%
Package software
implementation 16.1% 13.1% 14.3% 13.7%
Product Engineering
Services 11.4% 11.5% 11.5% 11.5%
Infrastructure Management
Services 4.8% 5.1% 5.8% 5.4%
Business Process
Outsourcing 5.8% 5.7% 4.0% 4.5%
-----------------------------------------------------------------
-----
Total 100.0% 100.0% 100.0% 100.0%
===============================================================
=======
--------------------------------------------------------------
--------
Revenue by Project Type Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Time and Material 65.2% 65.6% 68.1% 67.6%
Fixed Price (including
Fixed Price SLA) 34.8% 34.4% 31.9% 32.4%
----------------------------------------------------------------
------
Total 100.0% 100.0% 100.0% 100.0%
===============================================================
=======
E2) CLIENT-REVENUE METRICS
--------------------------------------------------------------
--------
Particulates Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Top client 10.4% 11.1% 10.7% 11.8%
Top 5 Clients 31.5% 32.2% 33.5% 34.8%
Top 10 Clients 44.5% 44.8% 46.9% 47.3%
Client data
No of $1 million clients 87 86 72 84
No of $5 million clients 28 30 31 31
No of $10 million clients 18 15 13 14
No of $50 million clients 2 2 2 2
No of new clients 21 34 25 119
No. of active Clients 336 331 267 318
% of Repeat Business 92.0% 92.6% 92.7% 92.4%
================================================================
======
E3) EFFORTS AND UTILISATION
----------------------------------------------------------
------------
Efforts Mix Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Onsite efforts 29.2% 29.2% 30.7% 30.4%
Offshore efforts 70.8% 70.8% 69.3% 69.6%
----------------------------------------------------------------
------
Total 100.0% 100.0% 100.0% 100.0%
===============================================================
=======
--------------------------------------------------------------
--------
Utilisation Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Utilisation 72.0% 70.0% 71.7% 72.4%
E4) EMPLOYEE METRICS
--------------------------------------------------------------
--------
Jun 30 2008 Mar 31 2008 Jun 30 2007 2007
-----------------------------------------------------------------
-----
Total Employees 15,044 15,152 13,723 14,945
---------------------------------------------------------------
-------
Offshore 11,992 12,216 10,832 12,011
Onsite 3,052 2,936 2,891 2,934
Total 15,044 15,152 13,723 14,945
Sales & Support Staff 1,496 1,516 1,370 1,447
Net Additions (108) 207 627 2,141
Attrition (LTM) excluding
BPO 21.2% 23.0% 30.1% 25.1%
E5) RUPEE - US DOLLAR RATE
-----------------------------------------------------------------
-----
Jun 30 2008 Mar 31 2008 Jun 30 2007
-----------------------------------------------------------------
-----
Period end rate 43.02 40.11 40.71
Period average rate 41.94 39.82 40.80
----------------------------------------------------------------
------
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