Patni's Q2 2006 Revenues up 32% at US$ 143.0 million (Rs. 6,560.7 million).MUMBAI Mumbai (m  mbī`, m m`bī), formerly Bombay (bŏmbā`), city (1991 pop. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. -- Patni Computer Systems Patni Computer Systems Ltd., is a provider of Information Technology services and business solutions. The company employs over 14,000 people, and has 23 international offices across the Americas, Europe and Asia-Pacific,as well as offshore development centers in 8 cities in India. Limited (Patni Patni may refer to:
Performance Highlights Important note: Prior years' tax review by IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. and review by Department of Labor of Patni's US operations has resulted in additional provisions leading to an increase in gross profit and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. by approx. US$ 7.0 million and decrease in net income by US$ 19.9 million. Variations in Patni's Q2 2006 financial performance as a result of these reviews have been referred to as 'additional provisions' in this press release. Sequential One after the other in some consecutive order such as by name or number. Quarter Review (Q2 2006 v/s. Q1 2006): --Revenues increased by 10.2% to US$ 143.03 million (Rs.6,560.66 million) from US$ 129.85 million (Rs. 5,775.53 million). --Gross Profit at US$ 53.69 million (Rs. 2,462.65 million) compared to US$ 46.09 million (Rs. 2,050.08 million). Gross Profit adjusted for additional provisions at approx. US$ 46.6million. --Operating income at US$ 24.21 million (Rs. 1,110.72 million) compared to US $ 17.65 million (Rs. 784.97 million). Operating Income adjusted for additional provisions at approx. US$ 17.1 million. --Net income at (-) US$ 3.21 million ((-) Rs. 146.96 million) from US$ 14.44 million (Rs. 642.48 million). Net Income adjusted for additional provisions at US$ 16.7 million. Corresponding Quarter Review (Q2 2006 v/s. Q2 2005): --Revenues increased by 31.6% to US$ 143.03 million (Rs. 6,560.66 million) from US$ 108.72 million (Rs. 4,730.23 million). --Gross Profit at US$ 53.69 million (Rs. 2,462.65 million) from US$ 37.34 million (Rs. 1,624.74 million). --Operating income at US$ 24.21 million (Rs. 1,110.72 million) compared to US$ 15.23 million (Rs. 662.77 million). --Net income was at (-) US$ 3.21 million ((-) Rs. 146.96 million) compared to US$ 14.28 million (Rs. 621.46 million) Business Analysis - sequential quarter perspective --Revenue contribution from GE reduced to 14.5% in Q2 2006 from 16.5% in Q1 2006 and from 23.0% in Q2 2005. Revenues from clients other than GE were sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen higher by 12.8% in Q1 2006. --Strong growth achieved across most vertical/technology segments including double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. sequential expansion in manufacturing, telecom and ISV (Independent Software Vendor) A person or company that develops software. It implies an organization that specializes in software only and is not part of a computer systems or hardware manufacturer. practices. --Non-US regions grew 22.8% sequentially with key growth drivers being Europe Europe (y r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Asia Pacific and Rest of the World.--Patni's revenue growth was driven by volume growth of 7.2%, and price increase of about 2.5%. Key Corporate Developments in Q2 2006: --Top management appointments -- Mrinal Sattawala and Surjeet Singh Surjeet Singh is a Fijian of Indian descent who has made valuable contribution to the development of Chess in Fiji. He re-vitalised the University of the South Pacific Chess Club. He was a founder member of the Fiji Chess Federation. (1) elevated to the respective positions of COO (Cell Of Origin) See mobile positioning. and CFO See Chief Financial Officer. . --Acquired ZAiQ Technologies, a US-based design and verification See verify. verification - The process of determining whether or not the products of a given phase in the life-cycle fulfil a set of established requirements. company, for ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. design capabilities and to strengthen existing verification and validation Verification and Validation (V&V) is the process of checking that a product, service, or system meets specifications and that it fulfills its intended purpose. These are critical components of a quality management system such as ISO 9000. practice. --Launched LegacyX solution framework to help insurers implement their legacy renewal strategy. --Strategic alliances announced with Clear Technology, Inc. in the insurance and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. solutions space and Eagle Investment Systems in the investment management space. (1) W.e.f. 14th August 2006 Future Outlook: --Q3 2006 revenues expected to grow by 4.5-5% and net income expected to be in the range of US$ 18-18.2 million excluding foreign exchange gain/loss and taking the operations at a constant dollar value of Rs. 45.48 per US$. Notes to this release: --Fiscal Year Patni follows a January January: see month. - December December: see month. fiscal year. The current review covers the financial and operating performance of the Company for the second quarter ended 30 June 2006. --U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). All figures in this release pertain to pertain to verb relate to, concern, refer to, regard, be part of, belong to, apply to, bear on, befit, be relevant to, be appropriate to, appertain 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 de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. GAAP, and not on the basis of any translated Rupee RUPEE, comm. law. A denomination of money in Bengal. In the computation of ad valorem duties, it is valued at fifty-five and one half cents. Act of March 2, 1799, s. 61; 1 Story's L. U. S. 627. Vide Foreign coins. 2. 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 New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on the last business day of such period for cable transfers in Rupees as certified See certification. for customs purposes by the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. . 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. Performance synopsis A summary; a brief statement, less than the whole. A synopsis is a condensation of something—for example, a synopsis of a trial record. Prior years' tax review by IRS and Department of Labor review of Patni's US operations has resulted in net reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of additional provisions leading to an increase in gross profit and operating income by approx. US$ 7.0 million and decrease in net income by US$ 19.9 million. In the second quarter ended June 30, 2006, Patni's revenues were at US$ 143.0 million (Rs. 6,560.66 million), higher by 31.6% compared to US$ 108.72 million (Rs. 4,730.23 million) in Q2 2005. Gross profit was at US$ 53.69 million (Rs. 2,462.65 million) compared to US$ 37.34 million (Rs. 1,624.74 million). After adjusting for the liabilities arising from IRS and Department of Labor reviews, gross profit for Q2 2006 was at approx. US$ 46.6 million. Operating income and income before income taxes (PBT PBT Provider Backbone Transport (networking technology adding determinism to ethernet) PBT Polybutylene Terephthalate PBT Profit Before Tax PBT Paper Based Test (education) ) reported during the quarter were at US$ 24.21 million (Rs. 1,110.72 million) and US$ 28.29 million (Rs. 1,297.57 million) respectively. After adjusting for the liabilities arising from IRS and Department of Labor reviews, operating income for Q2 2006 was at approx. US$ 17.1 million. Net income was at US$ -3.21 million (Rs. -146.96 million) compared to US$ 14.28 million (Rs. 621.46 million) in Q2 2005. After adjusting for the liabilities arising from IRS and Department of Labor reviews, net income for Q2 2006 was at US$ 16.7 million. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the quarter was at US$ -0.02 (Rs. -1.07). Management comments Commenting on the Q2 2006 performance, Mr. Narendra K Patni, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Patni Computer Systems Ltd., said, "Our Q2 performance underscores Patni's ability to deliver sustained growth by leveraging the advantages of its highly scalable business model. We have delivered revenue growth significantly ahead of our guidance and internal estimates. Margins have been impacted by the annual salary revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. and the re-assessment of our obligations for taxes pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to prior years by IRS and a review by Department of Labor. Net income after adjusting for these additional provisions Is at US$ 16.7 million ahead of our guidance. Net income for Q2 includes operational efficiency benefits in line with our expectations. Moving into Q3, we expect revenue growth of 4.5% to 5% and net income in the range of US$ 18 to 18.2 million excluding forex variations and considering a constant dollar value of Rs.45.48 per US$. Overall, we remain very confident about our business momentum and continue to further expand the focus on driving internal efficiencies for delivering margin expansion." Commenting on the performance, Mr. Mrinal Sattawala, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , Patni, said, "Patni has delivered close to double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth during the quarter through revenue expansion across a diverse segment of its clients, across its focus vertical and technology segments and in most regions globally. This has resulted in further diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our revenue streams, a key focus area for us. During Q2, we have made several initiatives, some organic and others in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with our partners, that are expected to accelerate our future growth prospects. Global outsourcers increasingly recognize our strengths in delivering highly robust IT services from a multi-location delivery platform and we expect to leverage this advantage to generate continuing expansion in our operations." Speaking on the occasion, Mr. Deepak Deepak (दीपक) is a Sanskrit word meaning lamp, or source of light. In the twentieth century, it became very popular as a first name for male Hindus. Sogani, Chief Financial Officer, Patni, added, "In Q2 2006, Patni showed strong revenue growth driven by volume expansion. Annual planned salary revisions implemented across our global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. and the seasonal increase in legal immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. expenses led to a reduction in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . We saw improvements in our operations resulting in better realized prices and higher utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be levels. SG&A also declined as a percentage of revenues and excluding salary revisions saw an absolute reduction of US$ 0.8 million in Q2 2006. We have managed our cost base more efficiently during the quarter and expect to derive de·rive v. 1. To obtain or receive from a source. 2. To produce or obtain a chemical compound from another substance by chemical reaction. further upsides upsides Adverb Informal, chiefly Brit (foll. by with)equal or level with, as through revenge from operating efficiencies in the future. These would supplement the benefits derived from topline growth Topline growth Growth in revenues. Also see: Bottomline growth. ." Corporate developments in Q2 2006 Mrinal Sattawala appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. Chief Operating Officer Patni has appointed Mrinal Sattawala as its Chief Operating Officer. In this capacity, he has overall responsibility for operations of the business units. The Insurance and Financial Services business units now directly report to Mr. Sattawala. In addition, he will directly hold the responsibility for the sales and regional operations of the Europe and APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) regions, besides overseeing global sales and marketing. Surjeet Singh appointed Chief Financial Officer Patni has appointed Surjeet Singh as its Chief Financial Officer w.e.f. 14th August 2006. Surjeet previously headed Mergers & Acquisitions at Patni and continues to hold that responsibility. He previously co-founded Cymbal Corporation  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . and was its CFO prior to its merger with Patni. Acquired US-based ZAiQ Technologies Patni announced the acquisition of ZAiQ Technologies, a design and verification company, in Woburn Woburn, village, England Woburn (w `bərn), village, Bedfordshire, S central England. , Mass. Through the transaction, Patni
has obtained ZAiQ's ASIC design capabilities and IP, as well as
expertise in FPGA (Field Programmable Gate Array) A type of gate array that is programmed in the field rather than in a semiconductor fab. Containing up to hundreds of thousands of gates, there are a variety of FPGA architectures on the market. and SoC technologies. The addition of ZAIQ will enable
Patni to meet the growing demand for ASIC-based services in vertical
markets such as consumer electronics, telecom, computing computing - computer and wireless.Launch of LegacyX Solution Framework Patni launched LegacyX, a new solution framework aimed at helping insurers develop and implement their legacy renewal strategy. It is a comprehensive suite of time-tested methodologies, tools, templates and best practices that provide insurers a low-risk and proven approach to modernizing their legacy environments. Strategic alliance with Clear Technology,Inc. Patni has formed a strategic alliance with Clear Technology, Inc., a leading global software solutions company serving the insurance, financial services and healthcare industries. Patni will provide worldwide process consulting and system integration services for Clear Technology's insurance and financial services solutions. Strategic alliance with Eagle Investment Systems Eagle Investment Systems LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Eagle) and Patni have entered into a strategic alliance. The two organizations will work together to leverage their technology and capabilities to offer the investment management community an industry-leading spectrum of services and economic advantage from reduced cost of ownership and time-to-market.
Management Discussion & Analysis of Performance
(Figures in US$ million)
Addl.
provisions Q2 2006
in Q2 (excl. addl.
Particulars Q2 2006 2006(a) provisions) Q1 2006 Q2 2005
----------------------------------------------------------------------
Revenues 143.0 - 143.0 129.8 108.7
----------------------------------------------------------------------
Gross Profit 53.7 +7.0(1) 46.6 46.1 37.3
----------------------------------------------------------------------
Operating
Profit 24.2 +7.0(1) 17.1 17.6 15.2
----------------------------------------------------------------------
PBT 28.3 +7.2(2) 21.1 18.9 16.6
----------------------------------------------------------------------
PAT (3.2) -19.9(3) 16.7 14.4 14.3
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(a) these additional provisions have altered Q2 2006 numbers to the
extent mentioned in this column
1 - due to reversal of payroll taxes for earlier years, net of accrual
from DOL review
2 - impact of 1, net of write-back of interest/penalty for earlier
years
3 - impact of re-assessed corporate taxes for earlier years, net of 2
Revenues Patni's Q2 2006 revenues grew by 10.2% sequentially to US$ 143.0 million (Rs. 6,560.7 million) from US$ 129.85 million (Rs. 5,775.53 million) in the preceding quarter. Patni's revenue growth was driven by volume growth of 7.2% and price increases of about 2.5%. Patni experienced robust growth in most of its focus geographies. Q2 2006 revenues were 31.6% higher than the corresponding quarter last year. Cost of revenues Cost of revenues during Q2 2006 was at US$ 86.2 million (Rs. 3,951.70 million) compared to US$ 80.77 million (Rs. 3,592.81 million) in the preceding quarter. This variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality was mainly due to: --Annual salary revisions that resulted in higher resource costs - revisions averaged approx. 8% at onsite locations and approx. 17% at offshore centers. --Legal immigration charges increased by approx. US$ 1.5 million during Q2 due to the increased number of L1 and H1 visa applications made during the quarter. --Improved utilization, weaker rupee and higher number of working days resulted in an overall improvement of US$ 3.3 million in the current quarter. --Reversal of employment-related/payroll taxes based on the final liability provision for 2001 & 2002 and reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. of liability for 2003 & 2004 - leading to reversal of an additional provision of approx. US$ 9.0 million. --Accrual of approx. US$2.0 million for Department of Labor review for 2004 and 2005 for our U.S. operations. On a corresponding quarter basis, cost of revenues was up 24.7%. Depreciation on direct assets In Q2 2006, depreciation on direct assets was higher by 7.0% sequentially at US$ 3.2 million (Rs. 146.3 million) from US$ 2.98 million (Rs. 132.64 million) in Q1 2006. On a corresponding quarter basis, it was higher by 40.2%. Gross profit Gross profit was at US$ 53.69 million (Rs. 2,462.65 million) compared to US$ 46.09 million (Rs. 2,050.08 million) in the previous sequential quarter. Compared to the corresponding quarter last year, gross profit was higher by 43.8%. Gross profit for the quarter was higher by approx. US$ 7.0 million due to net reversal of additional provisions. Gross profit adjusted for additional provisions is at US$ 46.6 million. SG&A expenses Sales and marketing expenses were higher by 9.9% at US$ 11.02 million (Rs. 505.68 million), compared to US$ 10.03 million (Rs. 446.25 million) in the previous sequential quarter. Current quarter expenses bore the impact of salary revisions and payment of additional sales incentives Noun 1. sales incentive - remuneration offered to a salesperson for exceeding some predetermined sales goal bonus, incentive - an additional payment (or other remuneration) to employees as a means of increasing output . G&A expenses were higher on a sequential basis by 7.4% at US$ 17.10 million (Rs. 784.44 million) compared to US$ 15.92 million (Rs. 708.22 million). Apart from the salary revisions, Patni successfully managed its other indirect expenses to limit the increase in G&A expenses during Q2 2006. Excluding the impact of salary revisions, SG&A expenses for Q2 2006 reduced by approx. US$ 0.8 million compared to Q1 2006. On a corresponding quarter basis, sales and marketing expenses were higher by 27.2% while G&A expenses increased by 42.1%. Depreciation on SG&A assets In Q2 2006, depreciation on Patni's SG&A assets was at US$ 1.28 million (Rs. 58.92 million), lower by 5.5% compared to the previous sequential quarter and lower by 9.0% from the corresponding quarter last year. Provision for doubtful debts In Q2 2006, there was a provision for doubtful debts amounting to US$ 0.16 million (Rs. 7.39 million) compared to the provision for doubtful debts of US$ 0.13 million (Rs. 5.95 million) in Q1 2006. Foreign exchange gain/loss During Q2 2006, Patni recorded a foreign exchange gain of US$ 0.10 million (Rs. 4.50 million) as against a loss of US$ 0.99 million (Rs 44.20 million) reported in Q1 2006. Patni had recorded a foreign exchange gain of US$ 0.15 million (Rs. 6.72 million) in Q2 2005. Operating income In Q2 2006, operating income was at US$ 24.21 million (Rs. 1,110.72 million) compared to US$ 17.65 million (Rs. 784.97 million) in the previous sequential quarter. Operating income was up 59.0% compared to the corresponding quarter last year. Operating income was higher by approx. US$ 7.0 million due to the net reversal of provision adjusted in the cost of revenues. Operating income adjusted for additional provisions is at US$ 17.1 million during Q2 2006. Other income Other income (including interest and dividend income, net of interest expenses, profit/loss on sale of investments and other income) was at US$ 4.1 million (Rs. 186.85 million) in Q2 2006 compared to US$ 1.23 million (Rs. 54.85 million) in Q1 2006. On a corresponding quarter basis, other income was higher by 191.5%. Other income in the quarter under review includes the benefit of approx. US$ 0.1 million from the write-back (memory management) write-back - A cache architecture in which data is only written to main memory when it is forced out of the cache. Opposite of write-through. See also no-write allocation. of interest and related expense provisions for prior years. This relates to the reversal of employment-related/payroll taxes recorded in the cost of revenues. Profit before tax Patni's income before income taxes in Q2 2006 was at US$ 28.29 million (Rs. 1,297.57 million) compared to US$ 18.88 million (Rs. 839.82 million) in Q1 2006. On a corresponding basis the income before income taxes in Q2 2006 was higher by 70.1%. PBT has gone up by $7.2 million on account of net reversal of additional provisions. Income taxes In Q2 2006, Patni provided US$ 31.49 million (Rs. 1,444.53 million) for income taxes compared to US$ 4.44 million (Rs. 197.34 million) in Q1 2006. This included US$ 27.1 million pertaining to re-assessed corporate taxes for earlier years. Net income Net income in Q2 2006 was lower at (-) US$ 3.21 million (Rs. 146.96 million) compared to US$ 14.44 million (Rs. 642.48 million) in Q1 2006. Net income in Q2 2006 was lower by 122.4% compared to the corresponding quarter last year. Net income in Q2 2006 adjusted for additional provisions is at US$ 16.7 million. Balance Sheet / Cash Flow perspective The days' sales outstanding Days' sales outstanding Average collection period. (DSO See CSO. ) levels were at 64 days in Q2 2006 compared to 56 days in Q1 2006. At the close of Q2 2006, cash and cash equivalents (including short term investments) were at US$ 271.06 million (Rs. 12,433.30 million) compared to US$ 284.20 million (Rs. 12,641.07 million) at the close of Q1 2006 and US$ 151.06 million (Rs. 6,572.58 million) at the close of Q2 2005. During the quarter under review, US$ 12.66 million was used towards capital expenditure. Revenue analysis Top clients During Q2 2006, Patni's top client GE contributed 14.5% of revenues compared to 16.5% in Q1 2006. GE revenues during Q2 2006 were sequentially lower by 3.1% compared to Q1 2006. On a corresponding quarter basis, GE revenues were lower by 16.9% as starting Q4 2005 Patni has re-classified its revenues from Genworth, previously a GE Group company, as non-GE business following its sale by GE. Revenues from the top 10 clients (excluding GE) were higher by 12.0% during Q2 2006 compared to the immediately preceding quarter. On a corresponding quarter basis revenues from top 10 clients (excluding GE) expanded by 38.7%. Revenues from clients outside the top 10 showed a rise of 13.4% compared to Q1 2006 and increased by 52.9% compared to Q2 2005. Active / million-dollar relationships The number of million-dollar relationships increased to 64 at the end of Q2 2006 from 61 at the close of Q1 2006 and 50 at the close of Q2 2005. Client acquisition data During Q2 2006, 23 new clients were added compared to 20 in Q1 2006 and 19 in Q2 2005. These additions took the number of Patni's active relationships up to 220 at the end of Q2 2006. Vertical focus During the quarter under review, Patni witnessed growth along all major vertical/technology segments. Revenues from telecom, manufacturing, and the ISV practices expanded by 16.7%, 16.0%, and 12.6% respectively compared to Q1 2006. The sequential expansion in Financial Services, Product Engineering and Insurance was 8.3%, 7.2% and 6.1% respectively On a corresponding quarter basis, Patni's telecom and product engineering technology practice were the outstanding performers, expanding by 76.6% and 86.9% respectively. Geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge contribution Patni's US-based revenues were sequentially higher by 7.5% during Q2 2006. Business in other regions expanded significantly -- Europe grew 21.3%, Asia Pacific (ex-Japan) by 115.3% and Rest of the World by 59.4%. Non-US contribution to overall revenues was 19.0% in Q2 2006 compared to 17.0% in Q1 2006 and 14.7% in Q2 2005. Accordingly, U.S. contribution to revenues now stands at 81.0% compared to 85.3% a year back. Fixed price / T&M contracts In Q2 2006, revenues from fixed price contracts contributed 36.0% to overall revenues as compared to 37.3% in Q1 2006 and 39.0% in Q2 2005. T&M project revenues expanded by 12.5% on a sequential basis and 38.0% on a corresponding basis, and their contribution to overall revenues has steadily increased. About Patni Computer Systems Ltd: About Patni: Patni Computer Systems Limited (NYSE NYSE See: New York Stock Exchange : PTI PTI - Portable Tool Interface , BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). : PATNI COMPUT, NSE NSE - Network Software Environment: a proprietary CASE framework from Sun Microsystems. : PATNI) is a leading Indian provider of information technology services. Patni offers its services through industry-focused practices, including insurance, manufacturing, financial services, and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , and through technology-focused practices. Patni's service lines include application development, application maintenance and support, packaged software See software package. implementation, infrastructure management services, product engineering services, business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in and quality assurance services Assurance services have been defined by the American Institute of Certified Public Accountants (AICPA) as 'Independent Professional Services that improve information quality or its context'. . For more information on Patni, please visit www.patni.com. Attached Results and analysis tables --Consolidated Statement of Income (US$) --Consolidated Statement of Income (INR INR In currencies, this is the abbreviation for the Indian Rupee. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ): based on convenience translation
Details of the schedule of events are as follows:
Earnings Release over -- July 31, 2006
the wire services
Earnings Call -- 5:00-6:00 p.m. IST (7:30-8.30 a.m. ET,
Timing 7:30-8:30 p.m. Singapore local time) on
Tuesday, August 01, 2006
India Toll -- +91 22 2781 2277/ 6791 7977
Toll free -- U.S.: 877-209-0463
dial-in for -- UK: 0800-917-4860
International -- Singapore: 800-101-1350
Participants -- Hong Kong: 800-901-700
-- Japan: 005-311-60205
-- U.S. / International Toll number:
+1-706-643-0243
Conference ID:
3323296#
India Playback -- Available from 01 August - 04 August,
Facility 2006 at: +91-22-2788 0541/ 6791 7908
Playback -- Available from 01 August - 03
Facility for August, 2006 at:
U.S./International U.S. Toll-free: 800-642-1687
Participants International Toll number: 706-645-9291
Conference ID:
3323296#
Audio webcast -- Available live and an archive of the
on www.patni.com event can be accessed till August 15,
2006.
======================================================================
Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. : Certain statements in this release concerning our future growth prospects are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , reduced demand for technology in our key focus areas, disruptions in telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. 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 instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor 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
FISCAL YEAR AND SECOND QUARTER ENDED JUNE 30, 2006
July 31, 2006
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 June 30, 2006.
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.
PATNI COMPUTER SYSTEMS LIMITED
CONSOLIDATED STATEMENT OF INCOME (US$ '000)
======================================================================
Q2 Q2 Shift Q1 Shift
Particulars 2006 2005 % 2006 % 2005
----------------------------------------------------------------------
Revenues 143,027 108,716 31.6 129,846 10.2 450,332
----------------------------------------------------------------------
Cost of revenues 86,150 69,099 24.7 80,774 6.7 278,068
----------------------------------------------------------------------
Depreciation 3,190 2,275 40.2 2,982 7.0 10,413
----------------------------------------------------------------------
Gross Profit 53,687 37,342 43.8 46,090 16.5 161,851
----------------------------------------------------------------------
Sales and marketing
expenses 11,024 8,668 27.2 10,033 9.9 36,059
----------------------------------------------------------------------
General and
administrative
expenses 17,101 12,036 42.1 15,922 7.4 49,022
----------------------------------------------------------------------
Depreciation 1,284 1,412 (9.0) 1,360 (5.5) 4,800
----------------------------------------------------------------------
Provision for doubtful
debts and advances 161 (162) (199.1) 134 20.3 (152)
----------------------------------------------------------------------
Foreign exchange (gain)
/ loss, net (98) 154 (163.5) 994 (109.9) 1,693
----------------------------------------------------------------------
Operating income 24,214 15,233 59.0 17,648 37.2 70,429
----------------------------------------------------------------------
Initial public offering
related expenses - - - - - -
----------------------------------------------------------------------
Other income /
(expense), net 4,073 1,397 191.5 1,232 230.5 4,241
----------------------------------------------------------------------
Income before income
taxes 28,287 16,630 70.1 18,880 49.8 74,670
----------------------------------------------------------------------
Income taxes 31,492 2,347 1,241.9 4,437 609.8 13,803
----------------------------------------------------------------------
Net income (3,205) 14,283 (122.4) 14,443 (122.2) 60,867
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic $(0.02) $0.11 $0.10 $0.48
----------------------------------------------------------------------
- Diluted $(0.02) $0.11 $0.10 $0.48
======================================================================
CONSOLIDATED STATEMENT OF INCOME (RS. '000): BASED ON CONVENIENCE
TRANSLATION
======================================================================
Q2 Q2 Q1
Particulars 2006 2005 2006 2005
----------------------------------------------------------------------
Exchange rate 45.87 43.51 44.48 44.95
----------------------------------------------------------------------
Revenues 6,560,658 4,730,225 5,775,534 20,242,423
----------------------------------------------------------------------
Cost of revenues 3,951,697 3,006,518 3,592,810 12,499,165
----------------------------------------------------------------------
Depreciation 146,314 98,971 132,644 468,056
----------------------------------------------------------------------
Gross Profit 2,462,647 1,624,736 2,050,080 7,275,202
----------------------------------------------------------------------
Sales and marketing expenses 505,678 377,162 446,247 1,620,845
----------------------------------------------------------------------
General and administrative
expenses 784,444 523,714 708,221 2,203,550
----------------------------------------------------------------------
Depreciation 58,919 61,443 60,486 215,754
----------------------------------------------------------------------
Provision for doubtful debts
and advances 7,387 (7,068) 5,953 (6,830)
----------------------------------------------------------------------
Foreign exchange (gain) /
loss, net (4,497) 6,719 44,203 76,107
----------------------------------------------------------------------
Operating income 1,110,716 662,766 784,970 3,165,777
----------------------------------------------------------------------
Initial public offering
related expenses - - - -
----------------------------------------------------------------------
Other income / (expense), net 186,850 60,801 54,852 190,623
----------------------------------------------------------------------
Income before income taxes 1,297,566 723,567 839,822 3,356,400
----------------------------------------------------------------------
Income taxes 1,444,527 102,109 197,339 620,445
----------------------------------------------------------------------
Net income (146,961) 621,458 642,483 2,735,955
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic (1.07) 4.97 4.66 21.76
----------------------------------------------------------------------
- Diluted (1.07) 4.92 4.61 21.47
======================================================================
CONSOLIDATED BALANCE SHEET (US$ '000)
======================================================================
As on As on As on
Particulars 30-Jun-06 31-Mar-06 30-Jun-05
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Total current assets 428,945 423,349 281,222
----------------------------------------------------------------------
Goodwill 39,883 27,987 29,418
----------------------------------------------------------------------
Intangible assets, net 10,212 9,940 11,564
----------------------------------------------------------------------
Property, plant, and equipment,
net 105,042 100,083 74,463
----------------------------------------------------------------------
Other assets 7,899 8,048 6,384
----------------------------------------------------------------------
Total assets 591,980 569,407 403,051
----------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------
Total current liabilities 144,228 96,853 76,411
----------------------------------------------------------------------
Capital lease obligations
excluding current installments 480 477 476
----------------------------------------------------------------------
Other liabilities 12,525 12,225 13,319
----------------------------------------------------------------------
Total liabilities 157,232 109,555 90,206
----------------------------------------------------------------------
Total shareholders' equity 434,747 459,852 312,845
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 591,980 569,407 403,051
======================================================================
CONSOLIDATED BALANCE SHEET (RS. '000): BASED ON CONVENIENCE
TRANSLATION
======================================================================
As on As on As on
Particulars 30-Jun-06 31-Mar-06 30-Jun-05
----------------------------------------------------------------------
Exchange rate 45.87 44.48 43.51
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Total current assets 19,675,692 18,830,550 12,235,970
----------------------------------------------------------------------
Goodwill 1,829,424 1,244,871 1,279,967
----------------------------------------------------------------------
Intangible assets, net 468,432 442,147 503,161
----------------------------------------------------------------------
Property, plant, and equipment,
net 4,818,258 4,451,673 3,239,865
----------------------------------------------------------------------
Deferred income taxes
----------------------------------------------------------------------
Security deposits with affiliates
----------------------------------------------------------------------
Other assets 362,306 357,991 277,779
----------------------------------------------------------------------
Total assets 27,154,112 25,327,232 17,536,743
----------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------
Total current liabilities 6,615,720 4,308,025 3,324,651
----------------------------------------------------------------------
Capital lease obligations excl.
installments 22,008 21,198 20,694
----------------------------------------------------------------------
Other liabilities 574,516 543,772 579,512
----------------------------------------------------------------------
Deferred income taxes
----------------------------------------------------------------------
Total liabilities 7,212,244 4,872,996 3,924,857
----------------------------------------------------------------------
Total shareholders' equity 19,941,868 20,454,236 13,611,886
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 27,154,112 25,327,232 17,536,743
======================================================================
CONSOLIDATED CASH FLOW STATEMENT (US$ '000)
======================================================================
Q2 Q1 Q2
Particulars 2006 2006 2005 2005
----------------------------------------------------------------------
Net cash provided by
operating activities 16,787 723 9,053 75,163
----------------------------------------------------------------------
Net cash used in investing
activities (12,046) (91,907) (12,619) (113,854)
----------------------------------------------------------------------
Capital expenditure, net (12,656) (11,275) (12,112) (51,050)
----------------------------------------------------------------------
Investment in securities,
net 609 (80,632) (507) (57,225)
----------------------------------------------------------------------
Investment in subsidiary,
net of cash acquired - - - (5,579)
----------------------------------------------------------------------
Net cash provided / (used)
in financing activities (7,303) 149 (5,452) 111,875
----------------------------------------------------------------------
Others (99) (110) (31) (329)
----------------------------------------------------------------------
Common shares issued, net
of expenses 184 259 126 118,736
----------------------------------------------------------------------
Dividend on common shares (7,388) (0) (5,548) (6,532)
----------------------------------------------------------------------
Net increase / (decrease)
in cash and equivalents (2,563) (91,035) (9,018) 73,184
----------------------------------------------------------------------
Effect of exchange rate
changes on cash and
equivalents (5,061) 2,868 524 (1,508)
----------------------------------------------------------------------
Cash and equivalents at
the beginning of the
period 60,652 148,820 33,641 77,143
----------------------------------------------------------------------
Cash and equivalents at
the end of the period 53,027 60,652 25,147 148,820
======================================================================
CONSOLIDATED CASH FLOW STATEMENT (RS '000): BASED ON CONVENIENCE
TRANSLATION
======================================================================
Q2 Q1 Q2
Particulars 2006 2006 2005 2005
----------------------------------------------------------------------
Exchange rate 45.87 44.48 43.51 44.95
----------------------------------------------------------------------
Net cash provided by
operating activities 770,001 32,138 393,904 3,378,586
----------------------------------------------------------------------
Net cash used in investing
activities (552,570)(4,088,038) (549,050)(5,117,756)
----------------------------------------------------------------------
Capital expenditure, net (580,526) (501,507) (526,977)(2,294,712)
----------------------------------------------------------------------
Investment in securities,
net 27,956 (3,586,531) (22,074)(2,572,278)
----------------------------------------------------------------------
Investment in subsidiary,
net of cash acquired - - - (250,766)
----------------------------------------------------------------------
Net cash provided / (used)
in financing activities (335,002) 6,645 (237,227) 5,028,801
----------------------------------------------------------------------
Others (4,536) (4,874) (1,332) (14,796)
----------------------------------------------------------------------
Common shares issued, net
of expenses 8,418 11,521 5,498 5,337,194
----------------------------------------------------------------------
Dividend on common shares (338,884) (2) (241,393) (293,597)
----------------------------------------------------------------------
Net increase / (decrease)
in cash and equivalents (117,570)(4,049,254) (392,373) 3,289,632
----------------------------------------------------------------------
Effect of exchange rate
changes on cash and
equivalents (232,164) 127,556 22,815 (67,791)
----------------------------------------------------------------------
Cash and equivalents at
the beginning of the
period 2,782,103 6,619,496 1,463,699 3,467,600
----------------------------------------------------------------------
Cash and equivalents at
the end of the period 2,432,370 2,697,797 1,094,141 6,689,441
======================================================================
REVENUE ANALYSIS
======================================================================
Q2 Q1 Q2
Client revenue breakup 2006 2006 2005 2005
----------------------------------------------------------------------
Top client 14.5% 16.5% 23.0% 22.9%
----------------------------------------------------------------------
Top 5 Clients 38.1% 39.8% 48.0% 47.6%
----------------------------------------------------------------------
Top 10 Clients 54.0% 55.3% 60.4% 59.8%
----------------------------------------------------------------------
Client data
----------------------------------------------------------------------
No of million Dollar clients 64 61 50 61
----------------------------------------------------------------------
No of new clients 23 20 19 74
----------------------------------------------------------------------
No of active clients 220 206 191 199
======================================================================
======================================================================
Q2 Q1 Q2
Vertical revenue breakup 2006 2006 2005 2005
----------------------------------------------------------------------
Insurance 23.2% 24.1% 28.2% 27.7%
----------------------------------------------------------------------
Manufacturing 21.4% 20.3% 22.6% 21.9%
----------------------------------------------------------------------
Financial Services 15.5% 15.8% 15.3% 16.0%
----------------------------------------------------------------------
Telecommunications 20.0% 18.9% 14.9% 15.3%
----------------------------------------------------------------------
GI 6.0% 6.8% 6.5% 6.5%
----------------------------------------------------------------------
ISV Practice 4.2% 4.1% 5.7% 5.0%
----------------------------------------------------------------------
Product Engineering Practice 9.7% 10.0% 6.8% 7.5%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
======================================================================
Q2 Q1 Q2
Geographical revenue breakup 2006 2006 2005 2005
----------------------------------------------------------------------
United States 81.0% 83.0% 85.3% 84.8%
----------------------------------------------------------------------
Europe 11.2% 10.2% 9.3% 9.1%
----------------------------------------------------------------------
Japan 3.9% 4.5% 4.2% 4.3%
----------------------------------------------------------------------
Asia-Pacific (excluding Japan) 2.2% 1.1% 0.6% 0.7%
----------------------------------------------------------------------
Rest of the world 1.7% 1.2% 0.7% 1.1%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
======================================================================
Q2 Q1 Q2
Type of contract revenue breakup 2006 2006 2005 2005
----------------------------------------------------------------------
Time and Material 64.0% 62.7% 61.0% 59.5%
----------------------------------------------------------------------
Fixed Price (including Fixed Price
SLA) 36.0% 37.3% 39.0% 40.5%
----------------------------------------------------------------------
Others 0.0% 0.0% 0.0% 0.0%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
======================================================================
Q2 Q1 Q2
Efforts by location of delivery 2006 2006 2005 2005
----------------------------------------------------------------------
Onsite efforts 33.7% 33.7% 36.2% 35.4%
----------------------------------------------------------------------
Offshore efforts 66.3% 66.3% 63.8% 64.6%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS. '000)
======================================================================
Q2 Q1 Q2
Particulars 2006 2006 2005 2005
----------------------------------------------------------------------
Sales and service income 6,490,885 5,749,578 4,742,280 19,869,306
----------------------------------------------------------------------
Other income 131,212 148,272 70,519 381,932
----------------------------------------------------------------------
Total income 6,622,097 5,897,850 4,812,799 20,251,238
----------------------------------------------------------------------
Staff costs 3,538,407 3,223,502 2,713,119 11,197,700
----------------------------------------------------------------------
Selling, general and
administration expenses 1,524,254 1,519,405 1,198,562 4,931,281
----------------------------------------------------------------------
Depreciation 205,544 192,641 160,173 678,158
----------------------------------------------------------------------
Less: Transfer from
revaluation reserve 20 20 21 81
----------------------------------------------------------------------
Interest 128,655 34,486 5,999 81,234
----------------------------------------------------------------------
Initial public offering
related expenses - - - -
----------------------------------------------------------------------
Total expenditure 5,396,840 4,970,014 4,077,832 16,888,292
----------------------------------------------------------------------
Net profit before tax and
adjustments 1,225,257 927,836 734,967 3,362,946
----------------------------------------------------------------------
Provision for taxation 1,866,598 221,767 104,453 466,166
----------------------------------------------------------------------
Prior period adjustment 291,898 - - 909,687
----------------------------------------------------------------------
Profit for the year after
taxation (933,239) 706,069 630,514 1,987,093
----------------------------------------------------------------------
Profit and loss account,
brought forward 9,583,348 8,877,279 8,159,455 7,480,016
----------------------------------------------------------------------
Equity in earning of
affiliate
----------------------------------------------------------------------
Amount available for
appropriation 8,650,109 9,583,348 8,789,969 9,467,109
----------------------------------------------------------------------
Proposed dividend on equity
shares 289 - 188 344,684
----------------------------------------------------------------------
Dividend on equity shares of
subsidiary - - -
----------------------------------------------------------------------
Dividend tax 40 - 2,417 50,733
----------------------------------------------------------------------
Transfer to general reserve - - 194,413
----------------------------------------------------------------------
Profit and loss account,
carried forward 8,649,780 9,583,348 8,787,364 8,877,279
----------------------------------------------------------------------
Earning per share (Rs. per
equity share of Rs. 2 each)
----------------------------------------------------------------------
- Basic (6.77) 5.12 5.04 15.80
----------------------------------------------------------------------
- Diluted (6.77) 5.05 4.99 15.59
======================================================================
U.S. GAAP / INDIAN GAAP RECONCILIATION STATEMENT (RS. '000)
======================================================================
Q2 Q1 Q2
Particulars 2006 2006 2005 2005
----------------------------------------------------------------------
----------------------------------------------------------------------
Consolidated net income as per
Indian GAAP (933,239)706,069 630,514 1,987,093
----------------------------------------------------------------------
Acquisition of entity under
common control - - - -
----------------------------------------------------------------------
Income taxes (83,933) 12,366 (5,772) (52,991)
----------------------------------------------------------------------
Fixed assets and depreciation (546) 66 (671) 7,164
----------------------------------------------------------------------
Amortisation of miscellaneous
expenditure - - - -
----------------------------------------------------------------------
Foreign currency differences 145,296 (33,988)(14,225) 51,364
----------------------------------------------------------------------
Employee retirement benefits 10,530 5,906 24,699 (22,082)
----------------------------------------------------------------------
ESOP related Compensation Cost (48,833)(39,712)
----------------------------------------------------------------------
Short provision for branch profit
taxes in earlier years under
Indian GAAP - - - -
----------------------------------------------------------------------
Provision for decline in fair
value of investment 115 - (20) -
----------------------------------------------------------------------
Business acquisition (9,904) (9,667)(10,255) (32,754)
----------------------------------------------------------------------
Prior Period Adjustments 774,816 - - 746,661
----------------------------------------------------------------------
Others (5) 127 (1,668) (1,845)
----------------------------------------------------------------------
Total 787,537 (64,902) (7,912) 695,517
----------------------------------------------------------------------
----------------------------------------------------------------------
Consolidated net income as per US
GAAP (145,702)641,167 622,602 2,682,610
======================================================================
HUMAN RESOURCES
======================================================================
People related data: Location Q2 Q1 Q2
wise analysis 2006 2006 2005 2005
----------------------------------------------------------------------
Offshore 9,908 9,594 8,350 9,221
----------------------------------------------------------------------
Onsite 2,700 2,554 2,527 2,581
----------------------------------------------------------------------
Total 12,608 12,148 10,877 11,802
======================================================================
======================================================================
Q2 Q1 Q2
People related data 2006 2006 2005 2005
----------------------------------------------------------------------
Opening 12,148 11,802 10,426 9,661
----------------------------------------------------------------------
Additions - net 460 346 451 2,141
----------------------------------------------------------------------
Closing 12,608 12,148 10,877 11,802
----------------------------------------------------------------------
Utilization 70.2% 67.8% 67.5% 68.6%
----------------------------------------------------------------------
Attrition (annualized) excluding
BPO 21.0% 20.3% 17.9% 18.6%
----------------------------------------------------------------------
Sales & support staff 1,265 1,197 1,099 1,135
======================================================================
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