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*Important Note: In Q3 2009, based on prior years tax reviews by IRS, which were concluded during the quarter, certain provisions have been reversed resulting in one time increase in gross profit of US$ 1.2 million, other income of US$ 2.1 million and decrease in tax expense of US$ 8.1 million. Consequently, profit after tax has increased by US$ 11.4 million for the quarter. Similarly in our Q3 2008 release, prior year's tax reviews by IRS, had resulted in reversal of certain provisions which led to a one time increase in gross profit of US$ 2.8 million, other income of US$ 8.3 million and decrease in tax expense of US$ 7.7 million. Consequently, profit after tax had increased by US$ 18.7 million for Q3 2008. Variations in Patni's Q3 2008 & Q3 2009 financial performance as a result of such write backs have been referred to as "Extra Ordinary Items" in this press release. Financial Performance excluding these Extra ordinary items has been considered for comparative performance review in this release.
Performance Highlights for the quarter ended September 30,2009
-- Revenues for the quarter at US$ 167.2 million (Rs.8,040.2 million)
-- Up 3.3% QoQ from US$ 161.9 million (Rs.7,729.1 million)
-- Down 8.9 % YoY from US$ 183.5 million (Rs. 8,522.5 million)
-- Revenue concentration from top client lower at 11.9% against 12.3%, Top 5 up at 38.3% from 37.2%, $ 1m relationships up at 92 , 7 new clients added during the quarter.
-- Operating Income for the quarter at US$ 27.1 million (Rs.1,303.1 million)
-- Up 11.7% QoQ from US$ 24.3 million (Rs.1,158.3 million)
-- Down 2.0% YoY from US$ 27.6 million (Rs.1,283.9 million)
-- Operating Income adjusted for Extra Ordinary items is at US$25.9 million for the quarter, + 6.9% QoQ and +4.3% YoY .
-- Net Income for the quarter at US$ 35.7 million (Rs. 1,715.7 million)
-- Up 24.5% QoQ from US$ 28.7 million (Rs. 1,368.5 million)
-- Down 17.2% YoY from US$ 43.1 million (Rs.2,001.9 million)
-- Net income adjusted for Extra Ordinary items is at US$ 24.3 million for the quarter, (-)15.2% QoQ and (-)0.4% YoY
-- EPS for the quarter at US$ 0.28 per share (US$ 0.56 per ADS).
-- EPS adjusted for Extra Ordinary items is at US$ 0.19 per share (US$ 0.38 per ADS)
Future Outlook:
-- Q4 CY2009 Revenues are expected to be at US$ 168 million to US$169 million and Net Income (Excluding the hedging Gain/Loss) is expected to be in the range of US$ 24 million to US$ 25 million
-- This guidance is based on constant Rupee -USD rate of Rs.46.5 and constant GBP --USD rate of 1.65, EURO-USD rate of 1.40.
-- Mark to Market foreign exchange gain during Q4 2009 is expected to be in the range of US$ 1 to $ 1.5 million based on current estimates. This may change depending on further currency movements during the quarter and will impact our Net Earnings accordingly.
Management Comments
Mr. Jeya Kumar, Chief Executive Officer, said, " Our Overall performance from the quarter has been ahead of our expectations on all counts .We are very pleased with these results and hard work of our employees in these difficult times. While the global macro economic environment is still thwart with risks and challenges, the fading of solvency risks is positive with stable market place. Deflationary pressure on overall global IT services market is likely to continue for foreseeable future, however the off shoring and global delivery services market share will increase over time. We find ourselves in a good position competitively with our micro vertical focused strategy even as sustained visibility to growth is at least 2-3 quarters away."
Speaking on the occasion, Mr. Surjeet Singh, Chief Financial Officer, said, "Volumes were up during the quarter and pricing was stable. All customer categories grew on volumes and marginal forex change. Cost realignment gains continued during the quarter as our operating earnings remained ahead of our expectations. With continued investments in geographic expansion, we are confident of capturing faster incremental growth along with inorganic additions besides gains on resultant absorption benefits in our cost base over the next 12- 18 months."
Corporate Developments
Appointments
-- Key leadership Appointments
Mr. Vijay Mehra has been appointed as Executive Vice President and Head of Business Verticals. Vijay was until recently, Global CIO at Essar Group of Companies and comes with over 20 years of global management and consulting experience. Vijay will define and boost Patni's micro-verticals strategy, structure, systems and skills.
Mr. Naresh K. Lakhanpal,has been appointed as President, Patni Americas Inc. Naresh has over 23 years of diverse business experience including operations, sales, engineering, product development and strategy.
Mr. V Mathivanan , has been appointed President, APAC and will lead this business from Singapore, where Patni has recently established its new regional headquarters. Mathi comes with over 30 years of experience specializing in IT with companies such as Singapore Network Services (SNS) and CrimsonLogic.
Innovation
-- Patni Computer Systems Unveils Cloud Services Strategy
Patni's first in a series of consulting and software services initiatives designed to help customers accelerate deployment to a cloud environment. The first offering, Patni's Cloud Acceleration Program (CAP), gives independent service providers and application developers a structured, business-driven approach based on Patni's proven process and methodologies that take the guesswork out of transitioning to cloud-based solutions.
Awards & Recognition
-- Patni Ranked #7 Preferred Employer in DQ-IDC's Best Employer Survey 2009
Patni has been conferred the #7 Preferred Employer rank in DQ-IDC's Best Employer Survey 2009 based on an industry-wide employee satisfaction survey. The company was also ranked #16 Best IT Employer after a comprehensive analysis of HR policies across the industry. This rank is significant as it indicates a jump of 13 places from last year for Patni.
-- Patni Named "Challenger" in Magic Quadrant for Help Desk Outsourcing, North America
Patni has been positioned by leading industry analyst firm Gartner, Inc., in the "Challengers" quadrant of its "Magic Quadrant for Help Desk Outsourcing, North America" 2009 report by Richard Matlus and William Maurer. The report is designed to help corporations identify and evaluate outsourcing external service providers (ESPs) for help desk services.
Client Initiatives
-- Patni helps "Get Connected" deliver innovative online directory of help and support services for young people in crisis
Patni has collaborated with leading UK charity "Get Connected" to build a new online directory service, 'Webhelp 24/7', that will help young people find solutions to a wide range of issues, from coping with mental illness to learning disabilities. "Get Connected" has also been chosen as Patni's Charity of The Year for the EMEA region.
(Figures in Million US$ except EPS and Share Data)
A1) CONSOLIDATED STATEMENT OF INCOME
For the quarter / period ended
Particulars Sep 30 2009 (Unaudited) Extra Ordinary Items** NON GAAP Sept 2009 (Excluding Extra Ordinary Items) Sep 30 2008 (Unaudited) Extra Ordinary Items** NON GAAP Sept 2008 (Excluding Extra Ordinary Items) YoY change % Jun 30 2009 (Unaudited) QoQ change % Non GAAP YoY change % Non GAAP QoQ change % 2008 Extra Ordinary Items** NON GAAP 2008 (Excluding Extra Ordinary Items)
(Audited)
Revenue 167.2 167.2 183.5 183.5 -8.9 % 161.9 3.3 % -8.9 % 3.3 % 718.9 718.9
Cost of revenues 101.1 (1.2 ) 102.3 117.6 (2.8 ) 120.4 -14.0 % 101.6 -0.5 % -15.0 % 0.7 % 473.6 (2.8 ) 476.4
Depreciation 4.0 4.0 4.3 4.3 -7.8 % 4.1 -1.1 % -7.8 % -1.1 % 17.7 17.7
Gross Profit 62.0 1.2 60.9 61.5 2.8 58.7 0.9 % 56.2 10.3 % 3.7 % 8.3 % 227.6 2.8 224.8
Sales and marketing expenses 14.2 14.2 13.2 13.2 7.4 % 12.0 18.0 % 7.4 % 18.0 % 52.6 52.6
General and administrative expenses 18.0 18.0 21.2 21.2 -15.2 % 15.9 13.5 % -15.2 % 13.5 % 78.5 78.5
Provision for doubtful debts and advances 0.5 0.5 0.6 0.6 -17.7 % (0.0 ) -4630.7 % -17.7 % -4630.7 % 1.6 1.6
Foreign exchange (gain) / loss, net 2.3 2.3 (1.2 ) (1.2 ) -292.5 % 4.1 -45.3 % -292.5 % -45.3 % 18.4 18.4
Operating income 27.1 1.2 25.9 27.6 2.8 24.9 -2.0 % 24.3 11.7 % 4.3 % 6.9 % 76.6 2.8 73.8
Other income / (expense), net 5.9 2.1 3.8 11.4 8.3 3.1 -48.1 % 11.2 -47.5 % 23.7 % -65.9 % 30.0 7.0 23.0
Income before income taxes 33.0 3.2 29.8 39.0 11.0 28.0 -15.4 % 35.5 -7.0 % 6.4 % -16.1 % 106.6 9.8 96.8
Income taxes (2.7 ) (8.1 ) 5.5 (4.1 ) (7.7 ) 3.6 -34.4 % 6.8 -139.4 % 53.2 % -20.0 % 5.2 (8.4 ) 13.6
Net income/(loss) 35.7 11.4 24.3 43.1 18.7 24.4 -17.2 % 28.7 24.5 % -0.4 % -15.2 % 101.4 18.2 83.2
Earning per share
- Basic $ 0.28 $ 0.19 $ 0.32 $ 0.18 -12.2 % $ 0.22 24.4 % 5.6 % -15.2 % $ 0.75 $ 0.61
- Diluted $ 0.27 $ 0.19 $ 0.32 $ 0.18 -14.3 % $ 0.22 22.0 % 3.1 % -16.9 % $ 0.75 $ 0.61
Weighted average number of common shares used in computing
earnings per share
- Basic 128,163,437 128,163,437 135,925,454 135,925,454 128,105,795 135,590,677 135,590,677
- Diluted 131,290,834 131,290,834 135,925,454 135,925,454 128,704,643 135,760,422 135,760,422
** Certain prior years' tax review is concluded by IRS and has
resulted in net reversal leading to an increase in 2008 & Q3 2009
Gross Profit, Operating Income and Net Income.
1 - Due to write back of provision for payroll taxes of earlier years
2 - Impact of 1
3 - Due to write back of provision for interest/ penalties of
earlier years
4 - Impact of 2 and 3
5 - Due to write back of provision for income tax of earlier years
6 - Impact of 4 and 5
Financial Statements Analysis:
Revenues
Revenues during the quarter were higher by 3.3% sequentially to US$ 167.2 million (Rs.8,040.2 million), from US$ 161.9 million (Rs.7,729.1 million) in the preceding quarter. Revenue growth was driven by volume growth of 3.0% (including higher number of days) and 0.3% due to currency impacts. Number of active clients were 283 at quarter end as compared to 294 in Q2 2009.
Gross Margin
Gross Margins were at 37.1% or US$ 62.0 million (Rs.2,983.5 million) against 34.7% or US$ 56.2 million (Rs.2,684.5 million) in the previous quarter. Gross Profit adjusted for Extra Ordinary Items is at US$ 60.9 million at 36.4% during the quarter. Improvement in Gross margin is primarily on account of higher utilization and impact of cost rationalization measures.
Overall non cash expense is US$ 5.4 million which includes depreciation and amortization expenses of US$ 4.5 million and stock option charge of US$ 0.9 million. Corresponding expense for Q2 was US$ 4.6 million for depreciation and amortization and US$ 0.2 million for stock option charge.
Selling General and Administrative Expenses (SGA Expenses)
Sales and marketing expenses during the quarter were at US$ 14.2 million (Rs.680.8 million) at 8.5% as compared to US$ 12.0 million (Rs.572.7 million) at 7.4% in the previous quarter.
G&A expenses during the quarter were at US$ 18.0 million (Rs.865.7 million) or 10.8% as compared to US$ 15.9 million (Rs.756.9 million) at 9.8% during the previous quarter. The sequential change is due to period cost change which has got normalized during this quarter.
Overall non cash expense is US$ 3.9 million which includes depreciation and amortization expenses at US$ 2.4 million for the quarter as against US$ 2.1 million in Q2 2009 and stock option charge at US$ 1.5 million for the quarter as against US$ 0.6 million in Q2.
Foreign exchange gain/loss
The revaluation and mark to market foreign exchange loss for the quarter were at US$ 2.3 million (Rs.108.6 million) as compared to foreign exchange loss of US$ 4.1 million (Rs.197.2 million) during the previous quarter.
The quarter end rate for debtor's revaluation was Rs.48.10. Outstanding contracts at the end of Q3 2009 were about US$ 287 million which were contracted in the range of Rs.41.1 to Rs 51.2.
Operating Income
Operating Income including foreign exchange gain / loss was at US$ 27.1 million (Rs.1,303.1 million) or at 16.2% during the quarter. Operating income adjusted a for Extra Ordinary items is at US$ 25.9 million for the quarter or at 15.5% against US $24.3 million (Rs.1,158.3 million) or 15.0% during the previous quarter, reflecting an increase of 6.9% on QoQ and 4.3% on YoY basis.
Other Income
For Q3 CY2009, other income (including interest and dividend income net of interest expenses, profit/loss on sale of investments and other miscellaneous income) stood at 3.5% or US$ 5.9 million (Rs.283.4 million). Other Income adjusted for Extra ordinary items at US$ 3.8 million at 2.3% during the quarter lower than US$ 11.2 million during previous quarter due to cyclical change on account of fixed maturity investments.
Profit before Tax
Profit before tax for the quarter was at US$ 33.0 million (Rs.1,586.5 million) or at 19.7% during the quarter. Profit before Tax adjusted for Extra Ordinary items is at US$ 29.8 million for the quarter or at 17.8% against US $35.5 million (Rs.1,694.2 million) or 21.9% during the previous quarter, reflecting a sequential decrease of 16.1% and increase by 6.4% on YoY basis.
Income Taxes
Income tax for the quarter was at US$ (-) 2.7 million (Rs.129.2 million). Income Tax after adjustment of Extra Ordinary items is at US$ 5.5 million at an effective tax rate of 18.3%.
Net Income
Consequently, net income for the quarter at 21.3% was US$ 35.7 million (Rs.1,715.7 million) against US$ 28.7 million (Rs.1,368.5 million) at 17.7% in the previous quarter. Net income adjusted for Extra Ordinary items at US$ 24.3 million at 14.5% for the quarter.
Balance Sheet and Cash Flow changes
During the quarter, against net income of US$ 35.7 million (Rs.1,715.7 million), cash from operating activities was at US$ 34.4 million (Rs. 1,654.2 million) net of changes in current assets and liabilities of US $ (-) 7.9 million and non cash charges of US$ 6.6 million. These non cash charges comprise of depreciation and amortization including compensation cost of US$ 9.3 million and other charge of US$ (-) 2.7 million.
Net cash from investing activities was US$ 32.7 million (Rs.1,574.1 million) including capital expenditure of US$ 2.4 million (Rs.113.2 million),investment in investments of US$ 30.4 million (Rs.1,460.8 million).
Net cash outflow on financing activities was US$ 0.6 million (Rs.27.5 million) comprising payment of dividend on common shares of US$ 1.4 million (Rs.66.7 million) and US$ (-) 0.8 million (Rs.39.2 million) on other financing activities. Over all cash and cash equivalents (including short term investments) post revaluation, were at US$ 379.9 million (Rs.18,270.6 million), as compared to US$ 347.6 million (Rs.16,595.5 million) at the close of Q2 2009.
Receivables at the end of Q3 2009 were at US$105.6 million as compared to US$ 100.7 million at the end of Q2 2009. Number of days outstanding (Including Unbilled) for the current quarter were 75 days similar to the previous quarter.
Figures in Million INR except EPS and Share Data
D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME : BASED ON CONVENIENCE TRANSLATION For the quarter / period ended Particulars Sep 30 2009 Sep 30 2008 Jun 30 2009 2008 Exchange rate$1 = INR 48.09 46.45 47.74 48.58 Revenue 8,040.2 8,522.5 7,729.1 34,923.4 Cost of revenues 4,863.8 5,463.5 4,851.1 23,007.5 Depreciation 192.8 202.0 193.5 858.2 Gross Profit 2,983.5 2,857.0 2,684.5 11,057.7 Sales and marketing expenses 680.8 612.0 572.7 2,553.2 General and administrative expenses 865.7 985.9 756.9 3,813.5 Provision for doubtful debts and advances 25.3 29.7 (0.6 ) 79.0 Foreign exchange (gain) / loss, net 108.6 (54.5 ) 197.2 891.9 Operating income 1,303.1 1,283.9 1,158.3 3,720.1 Other income / (expense), net 283.4 527.9 536.0 1,459.7 Income before income taxes 1,586.5 1,811.8 1,694.2 5,179.8 Income taxes (129.2 ) (190.1 ) 325.8 252.8 Net income/(loss) 1,715.7 2,001.9 1,368.5 4,927.0 Earning per share - Basic 13.39 14.73 10.68 36.44 - Diluted 13.07 14.73 10.63 36.44 Weighted average number of common shares used in computing earnings per share - Basic 128,163,437 135,925,454 128,105,795 135,590,677 - Diluted 131,290,834 135,925,454 128,704,643 135,760,422
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 third quarter ended September 30, 2009
- 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 6 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.
NOTES:
a- 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 September 30, 2009.
a- U.S. GAAP
All figures in this release pertain to accounts presented as per
U.S. GAAP unless stated otherwise.
a- 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.
a- 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.
a- Reclassification
Certain reclassifications have been made in the financial statements
of prior years to conform to classifications used in the current
year.
Fact Sheet Summary Index
Ref Number Description Page No.
A US GAAP Financials
A1 Consolidated Statement of Income 3
A2 Consolidated Balance Sheet 4
A3 Consolidated Cash Flow Statement 4
B Indian GAAP Financials
B1 Conslidated Statement of Income 4
B2 Consolidated Balance Sheet 5
B3 Consolidated Cash Flow Statement 5
C Reconcilation between US GAAP and Indian GAAP Income 5
Statement
D US GAAP Financials Based on Convenience Translation
D1 Consolidated Statement of Income 6
D2 Consolidated Balance Sheet 6
D3 Consolidated Cash Flow Statement 6
E Operational and Analytical Information
E1 Revenue Analysis 7
E2 Revenue-Client Metrics 7
E3 Revenue Mix and Utilization 7
E4 Employee Metrics 8
E5 Infrastructure 8
E6 Currency Rates 8
A1) CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ '000)
For the quarter / period ended
Particulars Sep 30 2009 (Unaudited) Extra Ordinary Items** NON GAAP Sept 2009 (Excluding Extra Ordinary Items) Sep 30 2008 (Unaudited) Extra Ordinary Items** NON GAAP Sept 2008 (Excluding Extra Ordinary Items) YoY change % Jun 30 2009 (Unaudited) QoQ change % Non GAAP YoY change % Non GAAP QoQ change % 2008 Extra Ordinary Items** NON GAAP 2008 (Excluding Extra Ordinary Items)
(Audited)
Revenue 167,190 167,190 183,477 183,477 -8.9 % 161,899 3.3 % -8.9 % 3.3 % 718,884 718,884
Cost of revenues 101,140 (1,158 ) 102,298 117,621 (2,770 ) 120,391 -14.0 % 101,615 -0.5 % -15.0 % 0.7 % 473,600 (2,770 ) 476,370
Depreciation 4,010 4,010 4,349 4,349 -7.8 % 4,053 -1.1 % -7.8 % -1.1 % 17,666 17,666
Gross Profit 62,040 1,158 60,882 61,507 2,770 58,737 0.9 % 56,231 10.3 % 3.7 % 8.3 % 227,618 2,770 224,848
Sales and marketing expenses 14,157 14,157 13,176 13,176 7.4 % 11,995 18.0 % 7.4 % 18.0 % 52,557 52,557
General and administrative expenses 18,002 18,002 21,225 21,225 -15.2 % 15,855 13.5 % -15.2 % 13.5 % 78,499 78,499
Provision for doubtful debts and advances 526 526 639 639 -17.7 % (12 ) -4630.7 % -17.7 % -4630.7 % 1,626 1,626
Foreign exchange (gain) / loss, net 2,259 2,259 (1,173 ) (1,173 ) -292.5 % 4,130 -45.3 % -292.5 % -45.3 % 18,359 18,359
Operating income 27,097 1,158 25,939 27,640 2,770 24,870 -2.0 % 24,262 11.7 % 4.3 % 6.9 % 76,577 2,770 73,808
Other income / (expense), net 5,894 2,063 3,831 11,362 8,264 3,098 -48.1 % 11,227 -47.5 % 23.7 % -65.9 % 30,047 7,030 23,018
Income before income taxes 32,990 3,221 29,770 39,002 11,034 27,968 -15.4 % 35,489 -7.0 % 6.4 % -16.1 % 106,625 9,799 96,826
Income taxes (2,687 ) (8,144 ) 5,456 (4,093 ) (7,654 ) 3,561 -34.4 % 6,824 -139.4 % 53.2 % -20.0 % 5,203 (8,382 ) 13,586
Net income/(loss) 35,678 11,364 24,313 43,095 18,688 24,407 -17.2 % 28,665 24.5 % -0.4 % -15.2 % 101,421 18,181 83,240
Earning per share
- Basic $ 0.28 $ 0.19 $ 0.32 $ 0.18 -12.2 % $ 0.22 24.4 % 5.6 % -15.2 % $ 0.75 $ 0.61
- Diluted $ 0.27 $ 0.19 $ 0.32 $ 0.18 -14.3 % $ 0.22 22.0 % 3.1 % -16.9 % $ 0.75 $ 0.61
Weighted average number of common shares used in computing
earnings per share
- Basic 128,163,437 128,163,437 135,925,454 135,925,454 128,105,795 135,590,677 135,590,677
- Diluted 131,290,834 131,290,834 135,925,454 135,925,454 128,704,643 135,760,422 135,760,422
** Certain prior years' tax review is concluded by IRS and has
resulted in net reversal leading to an increase in 2008 & Q3 2009
Gross Profit, Operating Income and Net Income.
1 - Due to write back of provision for payroll taxes of earlier years
2 - Impact of 1
3 - Due to write back of provision for interest/ penalties of
earlier years
4 - Impact of 2 and 3
5 - Due to write back of provision for income tax of earlier years
6 - Impact of 4 and 5
A2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (US$ '000)
Particulars As on As on As on
30-Sep-09 30-Jun-09 30-Sep-08
Assets
Total current assets 546,229 516,292 475,252
Goodwill 65,784 65,966 67,125
Intangible assets, net 23,957 25,043 28,383
Property, plant, and equipment, net 146,324 151,006 157,483
Other assets 52,807 50,081 38,055
Total assets 835,101 808,389 766,298
Liabilities
Total current liabilities 133,234 134,731 150,773
Capital lease obligations excluding current installments 113 133 237
Other liabilities 27,865 39,586 29,054
Total liabilities 161,211 174,450 180,064
Total shareholders' equity 673,889 633,939 586,234
Total liabilities & shareholders' equity 835,101 808,389 766,298
A3) CONSOLIDATED CASH FLOW STATEMENT USGAAP (US$ '000)
Particulars Sep 30 2009 (Unaudited) Jun 30 2009 (Unaudited) Sep 30 2008 (Unaudited) 2008 (Audited)
Net cash provided by operating activities 34,398 43,799 27,147 149,343
Net cash used in investing activities (32,732 ) (29,857 ) 22,437 (35,532 )
Capital expenditure, net (2,355 ) (6,686 ) (6,026 ) (39,521 )
Investment in securities, net (30,377 ) (23,171 ) 28,463 3,989
Net cash provided / (used) in financing activities (571 ) (7,927 ) (54,837 ) (64,590 )
Others (43 ) (63 ) (69 ) (293 )
Common shares issued / (Buy Back) 860 5 (43,327 ) (52,855 )
Dividend on common shares (1,387 ) (7,869 ) (11,441 ) (11,441 )
Net increase / (decrease) in cash and equivalents 1,095 6,015 (5,253 ) 49,222
Effect of exchange rate changes on cash and equivalents (535 ) 4,446 (11,122 ) (21,709 )
Cash and equivalents at the beginning of the period 57,087 46,625 55,111 32,626
Cash and equivalents at the end of the period 57,647 57,087 38,736 60,138
B1) AUDITED CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS.
'000)
For the quarter / period ended
Particulars Sep 30 2009 Sep 30 2008 YoY Change % Jun 30 2009 QoQ Change % 2008
Sales and service income 8,017,247 7,996,102 0.3 % 7,796,456 2.8 % 31,172,682
Other income 320,406 471,517 -32.0 % 577,811 -44.5 % 1,288,421
Total income 8,337,653 8,467,619 -1.5 % 8,374,267 -0.4 % 32,461,103
Staff costs 4,734,238 4,626,485 2.3 % 4,440,280 6.6 % 18,328,658
Selling, general and administration expenses 1,993,299 2,085,785 -4.4 % 2,277,380 -12.5 % 9,268,979
Interest 15,531 26,806 -42.1 % 19,697 -21.2 % 78,959
Total expenditure 6,743,068 6,739,076 0.1 % 6,737,357 0.1 % 27,676,596
Net profit before tax and adjustments 1,594,585 1,728,543 -7.7 % 1,636,910 -2.6 % 4,784,506
Provision for taxation (91,181 ) (73,738 ) 23.7 % 277,232 -132.9 % 404,366
Profit/(loss) for the period after taxation 1,685,766 1,802,281 -6.5 % 1,359,678 24.0 % 4,380,140
Profit and loss account, brought forward 20,226,909 16,553,144 22.2 % 18,867,237 7.2 % 14,560,885
Amount available for appropriation 21,912,675 18,355,425 19.4 % 20,226,915 8.3 % 18,941,025
Proposed dividend on equity shares - - 0.0 % - 0.0 % 384,473
Dividend on equity shares - - 0.0 % 5 0.0 % -
Dividend tax - - 0.0 % 1 0.0 % 65,341
Transfer to general reserve - - 0.0 % - 0.0 % 389,154
Profit and loss account, carried forward 21,912,675 18,355,425 19.4 % 20,226,909 8.3 % 18,102,057
Earning per share (Rs. per equity share of Rs. 2 each)
- Basic 13.15 13.26 -0.8 % 10.61 23.9 % 32.30
- Diluted 12.83 13.24 -3.1 % 10.49 22.3 % 32.25
Weighted average number of common shares used in computing
earnings per share
- Basic 128,163,437 135,925,454 128,105,795 135,590,677
- Diluted 131,413,935 136,108,038 129,577,769 135,815,016
B2) AUDITED CONSOLIDATED BALANCE SHEET - INDIAN GAAP (RS. '000)
Particulars As on As on As on
30-Sep-09 30-Jun-09 30-Sep-08
Assets
Current assets, loans and advances 11,626,250 11,439,194 11,556,213
Goodwill 4,881,590 4,875,305 4,825,306
Fixed assets(Net of Depreciation) 8,448,428 8,666,260 9,028,214
Investments 15,544,306 13,926,908 11,113,595
Deferred tax asset, net 917,102 1,008,307 634,982
Total assets 41,417,676 39,915,974 37,158,310
Liabilities
Current liabilities and provisions 7,674,864 8,207,205 8,197,901
Secured loans 11,878 13,122 20,771
Deferred tax liability, net 167,441 154,303 129,265
Total liabilities 7,854,183 8,374,630 8,347,937
Total shareholders' equity 33,563,493 31,541,344 28,810,373
Total liabilities & shareholders' equity 41,417,676 39,915,974 37,158,310
B3) AUDITED CONSOLIDATED CASH FLOW STATEMENT - INDIAN GAAP (RS
'000)
Particulars Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Cash flows from / (used in) operating activities (A) 1,491,271 2,048,669 903,983 5,814,039
Cash flows used in investing activities (B) (1,448,150 ) (1,332,200 ) 1,125,514 (1,002,523 )
Cash flows from / (used in) from financing activities (C) (10,186 ) (383,269 ) (2,466,025 ) (2,859,934 )
Effect of changes in exchange rates (D) (330 ) 43,095 (115,258 ) (305,689 )
Net decrease in cash and cash equivalents during the period 32,605 376,295 (551,786 ) 1,645,892
(A+B+C+D)
Cash and cash equivalents at the beginning of the period 2,740,207 2,363,912 2,370,894 1,285,857
Cash and cash equivalents at the end of the period 2,772,812 2,740,207 1,819,108 2,931,750
C) Reconcilation of Income as per Indian GAAP and US GAAP(RS.
'000)
Particulars Sep 30 2009 Sep 30 2008 Jun 30 2009 2008
Consolidated net income as per Indian GAAP 1,685,800 1,802,281 1,359,678 4,380,116
Income taxes 54,100 45,517 33,244 60,298
Foreign currency differences 18,100 8,040 5,876 73,078
Employee retirement benefits 42,700 (8,896 ) (34,239 ) 17,937
ESOP related Compensation Cost (33,600 ) (42,729 ) (31,040 ) (165,832 )
Impairment of Intangible - 139,568
Amortisation of Intangibles , arising on Business acquisition (26,100 ) (17,614 ) (19,667 ) (71,055 )
Others (5,500 ) (3,463 ) 5,436 (2,720 )
Total 49,700 (19,145 ) 99,178 (88,293 )
Consolidated net income as per US GAAP 1,735,500 1,783,136 1,458,856 4,291,822
D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME (RS. '000): BASED
ON CONVENIENCE TRANSLATION
For the quarter / period ended
Particulars Sep 30 2009 Sep 30 2008 Jun 30 2009 2008
Exchange rate$1 = INR 48.09 46.45 47.74 48.58
Revenues 8,040,167 8,522,500 7,729,054 34,923,390
Cost of revenues 4,863,834 5,463,483 4,851,101 23,007,511
Depreciation 192,834 202,032 193,494 858,206
Gross Profit 2,983,500 2,856,985 2,684,459 11,057,673
Sales and marketing expenses 680,788 612,007 572,660 2,553,245
General and administrative expenses 865,707 985,903 756,928 3,813,465
Provision for doubtful debts and advances 25,296 29,682 (554 ) 78,979
Foreign exchange (gain ) / loss, net 108,630 (54,500 ) 197,170 891,859
Operating income 1,303,078 1,283,892 1,158,256 3,720,124
Other income / (expense), net 283,431 527,894 535,991 1,459,693
Income before income taxes 1,586,508 1,811,787 1,694,246 5,179,816
Income taxes (129,226 ) (190,136 ) 325,765 252,781
Net income/(loss) 1,715,734 2,001,923 1,368,481 4,927,035
Earning per share
- Basic 13.39 14.73 10.68 36.44
- Diluted 13.07 14.73 10.63 36.44
Weighted average number of common shares used in computing
earnings per share
- Basic 128,163,437 135,925,454 128,105,795 135,590,677
- Diluted 131,290,834 135,925,454 128,704,643 135,760,422
D2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (RS. '000): BASED
ON CONVENIENCE TRANSLATION
Particulars As on As on As on
30-Sep-09 30-Jun-09 30-Sep-08
Exchange rate$1 = INR 48.09 47.74 46.45
Assets
Total current assets 26,268,162 24,647,786 22,075,459
Goodwill 3,163,534 3,149,239 3,117,957
Intangible assets, net 1,152,091 1,195,538 1,318,393
Property, plant, and equipment, net 7,036,709 7,209,016 7,315,093
Other assets 2,539,488 2,390,889 1,767,662
Total assets 40,159,985 38,592,467 35,594,564
Liabilities
Total current liabilities 6,407,200 6,432,046 7,003,402
Capital lease obligations excl. installments 5,452 6,366 11,020
Other liabilities 1,340,004 1,889,824 1,349,563
Total liabilities 7,752,656 8,328,236 8,363,985
Total shareholders' equity 32,407,329 30,264,231 27,230,579
Total liabilities & shareholders' equity 40,159,985 38,592,467 35,594,564
D3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (RS '000):
BASED ON CONVENIENCE TRANSLATION
Particulars Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Exchange rate $1 = INR 48.09 47.74 46.45 48.58
Net cash provided by operating activities 1,654,179 2,090,951 1,260,973 7,255,086
Net cash used in investing activities (1,574,069 ) (1,425,354 ) 1,042,203 (1,726,132 )
Capital expenditure, net (113,245 ) (319,179 ) (279,897 ) (1,919,918 )
Investment in securities, net (1,460,824 ) (1,106,174 ) 1,322,100 193,786
Investment in subsidiary, net of cash acquired - - - -
Net cash provided / (used) in financing activities (27,466 ) (378,424 ) (2,547,184 ) (3,137,759 )
Others (2,091 ) (3,020 ) (3,225 ) (14,254 )
Common shares issued, net of expenses 41,338 256 (2,012,541 ) (2,567,709 )
Dividend on common shares (66,713 ) (375,660 ) (531,418 ) (555,796 )
Net increase / (decrease) in cash and equivalents 52,645 287,173 (244,008 ) 2,391,195
Effect of exchange rate changes on cash and equivalents (25,713 ) 212,249 (516,610 ) (1,054,639 )
Cash and equivalents at the beginning of the period 2,745,303 2,225,901 2,559,912 1,584,970
Cash and equivalents at the end of the period 2,772,235 2,725,323 1,799,294 2,921,526
E1 ) REVENUE ANALYSIS
Revenue By Geographical Segments Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Americas 80.8 % 80.0 % 76.7 % 77.0 %
EMEA 13.5 % 14.2 % 17.5 % 17.4 %
APAC 5.7 % 5.8 % 5.8 % 5.6 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
Revenue by Industry Verticals Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Insurance 31.2 % 29.7 % 25.1 % 24.7 %
Manufacturing, Retail and Distribution 28.4 % 27.7 % 29.5 % 28.9 %
Financial Services 12.3 % 13.8 % 12.5 % 12.8 %
Communications,Media & Utilities 13.5 % 13.7 % 17.7 % 17.9 %
Product Engineering Services 14.6 % 15.1 % 15.2 % 15.8 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
Revenue by Service Offerings Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Application Development & Maintenance 65.0 % 64.9 % 64.2 % 63.8 %
Package software implementation 12.9 % 13.8 % 15.0 % 14.5 %
Product Engineering Services 11.1 % 11.3 % 10.8 % 11.2 %
Infrastructure Management Services 6.0 % 4.7 % 4.7 % 4.9 %
Business Process Outsourcing 5.0 % 5.3 % 5.2 % 5.6 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
Revenue by Project Type Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Time and Material 57.6 % 60.2 % 63.2 % 64.0 %
Fixed Price (including Fixed Price SLA) 42.4 % 39.8 % 36.8 % 36.0 %
Total 100.0 % 100.0 % 100.0 % 100.0 %
E2) CLIENT- REVENUE METRICS
Particulars Sep 30 2009 Jun 30 2009 Sep 30 2008 2008
Top client 11.9 % 12.3 % 10.5 % 10.7 %
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