Patni Computers: It’s four-in-one!
(Sep 6, 2006)
Patni Computer Systems (PCS) recently announced its results for 2QCY06 (the company’s financial year ends in December). During the quarter, the company saw an impressive growth in its topline, driven by a combination of higher volumes, higher billing rates and favourable exchange rate movements. Margins saw an impressive expansion despite the salary revisions carried out, due in part to the favourable exchange rate movements, higher utilisation rates as well as a one-off item of reversal of payroll taxes for earlier years. Driven by the higher margins and considerably higher other income, the bottomline, adjusted for the additional provisioning due to re-assessed corporate taxes for earlier years, grew at an impressive sequential pace. For the half-year, the performance at the topline level has been good, but the bottomline has witnessed muted growth of 8.0% YoY (adjusted for one-off items).

Patni Computers: Challenges galore!
(May 9, 2006)
Patni Computer Systems (PCS) recently announced its results for 1QCY06 (the company’s financial year ends in December). During the quarter, the company saw a relatively muted sequential growth in its topline, partly due to a lower realised rupee-dollar rate. Margins took a hit, due to considerably higher salary costs, because of transition of onsite resources to a gross compensation structure. The lower margins and also a higher effective tax rate have led to a sequential dip in the bottomline during the quarter.

Patni Computers: Mixed performance
(Feb 22, 2006)
Patni Computer Systems (PCS) recently announced its results for CY05 (the company’s financial year ends in December). During the calendar year, topline has shown an impressive growth, helped partly by the acquisition of Cymbal, as also volume growth. However, due to higher-than-proportionate expenses, margins witnessed a significant contraction. Despite higher other income, the bottomline grew at a much slower pace than the topline, due to a combination of the lower margins, as well as higher depreciation charges and taxes paid.

Patni Computers: Improved performance
(Nov 29, 2005)
Patni Computer Systems (PCS) recently announced its results for the third quarter of CY05 (the company’s financial year ends in December). During 3QCY05, topline has grown at a good pace, mainly led by volume growth, while billing rates improved marginally. Due to a lower-than-proportionate rise in expenses, margins witnessed an expansion. Coupled with considerably higher other income and lower depreciation charges, net profits saw a strong double-digit sequential growth.

Patni Computers: Mixed results
(Aug 9, 2005)
Patni Computer Systems (PCS) announced its results for the second quarter of CY05 (the company’s financial year ends in December). During 2QCY05, while topline has grown at a healthy rate, mainly led by volume growth, the salary increases carried out during the quarter resulted in a considerable fall in margins. Higher other income and a considerably lower effective tax rate led to the fall in net profit being cushioned to some extent.

Patni Computers: Subdued performance…
(May 9, 2005)
Patni Computer Systems (PCS) announced its results for the first quarter of CY05 (the company’s financial year ends in December). During 1QCY05, while topline has grown by 8% QoQ, proportionately higher SG&A expenses caused expenses to rise at a faster pace, resulting in a drop of 50 basis points in margins. This in turn, as well as lower other income and considerably higher taxes paid resulted in net profit for 1QFY05 falling by 6% QoQ.

Patni Computers: Will growth sustain?
(Mar 2, 2005)
Patni Computer Systems (PCS) recently reported strong results for the full year ending December 2004. While topline has grown YoY by 27%, a marginal expansion in operating margins and higher other income has aided a much faster growth in the bottomline.

Patni Computers: Underperformer!
(Dec 22, 2004)
Patni Computers, the sixth largest software services exporter from the country, has been a poor performer in the past few quarters. Despite being one of the older companies in the sector, Patni has not been able to achieve the high level of growth relative to its large younger peers like Infosys and Wipro. Let us analyse the company’s performance in the latest quarter and see where it is likely headed in the future.