iGate Patni announces June quarter result. Net income falls 93%

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iGate Patni announces June quarter result
The information technology company, iGate Patni, came out with its June quarter results. The company reported a decline of nearly 93% in net income to Rs 10.8 crore for the second quarter ended June 30, 2011. This was on account of foreign exchange losses.

The net income for the company was at Rs 147 crore for the period April-June quarter of 2010, said iGate Patni in a statement .

"... We expect our results to stabilise in 2012, after all the integration expenses and the accounting charges related to the acquisition (of Patni by US-based iGate) have evened out," Patni CEO and MD Phaneesh Murthy said.

During May, 2011, iGate Corporation acquired an 82.4% stake in Patni Computers.

Revenues stood at Rs 822 crore for the quarter ending June 2011, registering an increase of 5.9%, an increase by . In 2010 the company had posted Rs 777.6 crore during its June quarter.

The company reported a foreign exchange loss of Rs 31.17 crore for the second quarter of the current year. The company had registered a loss of Rs 19.76 crore in the same quarter of the previous year.

The company stated, "For convenience, the company has used a cut-off date of May 15, 2011. Post May 15, 2011, consolidated financial statements reflect the push down accounting treatment".

During the quarter, the company generated cash flow of USD 16.5 million from operating activities and ended the quarter with USD 394 million in cash and short-term investments.

As of June 30, the company's headcount stood at 18,372. Shares of iGate Patni were trading at Rs 319 on the BSE, down 4.19% from the previous close.

OneIndia Money

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