Patni Computer Systems Limited (Patni) today announced
its financial results for the first quarter ended 31st March
2011.
*Important Note: During Q4’10, based on reviews of
certain tax positions for previous years, an amount of US$ 7.5
million was written back. Consequently, profit after tax increased
by US$ 7.4 million in 2010. This Variation is referred to as
“Extra Ordinary Items” in this press release and have been
separately shown as exclusion for non-GAAP presentation in
respective lines of other income, tax expense and net income, for
comparative purposes and should be read together with the reported
US GAAP results.
Performance Highlights for the quarter
ended March 31, 2011
- Revenues for the quarter at
US$190.3. million (R 8,476.6 million)
- Up 4.0% QoQ from US$ 183.0 million (R
8,200.3 million)
- Up 10.4% YoY from US$ 172.3 million (R
7,745.4 million)
- Revenue concentration of Top 10
Customers also reduced to 45.7% from 48.8% in previous quarter
- Operating Income for the quarter at
US$32.1 million (R 1428.1 million)
- Down 3.2% QoQ from US$ 33.1 million (R
1,483.1 million)
- Down 11.4% YoY from US$ 36.2 million (R
1,627.0 million)
- Effective Tax Rate for the quarter at
28% against 15% in previous quarter and 17% for full year 2010
excluding Extra Ordinary items.
- Net Income for the quarter at
US$26.5 million (R 1179.8 million)
- Down 32.8% QoQ from US$ 39.4 million
(R1,764.6 million)
- Adjusted for Extra Ordinary items down
by 16.8% from US$ 31.8 million for the previous quarter
- Down 20.5% YoY from US$ 33.3 million
(R1,497.1 million)
- EPS for the quarter at US$ 0.20 per
share (US$ 0.40 per ADS).
Management Comments
Mr. Jeya Kumar, Chief Executive Officer, said, “Our
performance during the quarter was in line with our expectations.
Continued focus on serving our customers and all stakeholders along
with the integration planning process with iGATE were the major
highlights of the quarter. Our recent deal wins are reflective of
our strategy to focus on differentiating in micro verticals. While
the short-term results may have volatility, long-term prospects of
the combined organization post the change of control are strong and
compelling.”
Speaking on the occasion, Mr. Surjeet Singh, Chief Financial
Officer, said, “All parameters of operating and financial
metrics were in line with our estimates. We continue to manage cost
structures and forex risks well.”
Client Wins
We won four new multiyear, multiservice contracts of $ 25-30M
total contract value each. In EMEA, the contracts were with a
major international Healthcare provider and a major international
service provider operating in the public sector in the UK. In the
US, the contracts were with a leading Customer Care company and a
company dealing in Forest Products.
(Figures in Million US$ except EPS and Share Data)
UNAUDITED CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ ‘000)
for the quarter/ period ended Particulars
GAAP
NON GAAP Dec 31 2010 GAAP NON
GAAP Particulars Mar 31 2011 Mar 31
2010
YoYchange %
Dec 31 2010
QoQchange %
ExtraOrdinaryitems
**
Dec 31 2010(Excl
ExtraOrdinary Items)
QoQChange %
2010 (Audited)
ExtraOrdinaryItems**
2010(ExcludingExtraOrdinaryitems)
Revenue 190.3 172.3 10.4% 183.0 4.0% 183.0 4.0% 701.7 701.7 Cost of
revenues 123.2 102.2 20.5% 118.1 4.3% 118.1 4.3% 439.0 439.0
Depreciation 4.1 4.0 1.9% 4.3 -3.6% 4.3 -3.6% 17.0 17.0
Gross
Profit 63.0 66.0 -4.7% 60.6
3.9% 60.6 3.9% 245.8 245.8 Sales
and marketing expenses 17.6 15.9 11.3% 15.8 11.4% 15.8 11.4% 61.7
61.7 General and administrative expenses 18.9 18.2 3.9% 19.6 -3.8%
19.6 -3.8% 72.4 72.4 Provision for doubtful debts and advances
(0.2) 0.6 -127.7% 0.2 -190.7% 0.2 -190.7% 0.6 0.6 Foreign exchange
(gain) / loss, net (5.5) (4.8) 14.5% (8.1) -32.8% (8.1) -32.8%
(22.0) (22.0)
Operating income 32.1 36.2
-11.4% 33.1 -3.2% 33.1 -3.2%
133.0 133.0 Other income / (expense), net 4.8 4.4
8.2% 5.6 -15.1% 1.4 4.3 12.0% 19.5 1.1 18.4 Income before income
taxes 36.8 40.6 -9.3% 38.7 -4.9% 1.4 37.4 -1.4% 152.5 1.1 151.5
Income taxes 10.3 7.3 41.8% (0.7) -1658.7% (6.2) 5.5 87.1% 19.3
(6.3) 25.6
Net income/(loss) 26.5 33.3
-20.5% 39.4 -32.8% 7.5 31.8
-16.8% 133.2 7.4 125.8 Earning per
share - Basic $ 0.20 $ 0.26 -22.1% $ 0.30 -33.2% $ 0.24 -17.3%
$ 1.02 $ 0.97 - Diluted $ 0.20 $ 0.25 -21.5% $ 0.29 -33.0% $ 0.24
-17.1% $ 0.99 $ 0.94 Weighted average number of common shares used
in computing earnings per share - Basic 131,991,860 129,251,485
131,142,633 131,142,633 130,101,442 130,101,442 - Diluted
134,910,508 133,200,892 134,506,173
134,506,173
133,848,374 133,848,374
** Reviews of certain tax positions for previous years has
resulted in net reversal leading to an increase in 2010 Net
Income.
1 – Due to write back of provision for interest/ penalties of
earlier years2 – Impact of 13 – Due to write back of provision for
income tax of earlier years4 – Impact of 2 and 3
Financial Statements Analysis:
Revenues
Revenues during the quarter were in line with expectation at US$
190.3 million (R 8,476.6 million) representing a sequential
increase of 4.0% from US$ 183.0 million (R 8,200.3 million).
Constant currency revenues were up 3.6% on account of volume.
Number of active clients was 299 at quarter end as compared to 297
in Q4’2010. New client acquisitions during the quarter were 14.
Gross Margin
Gross Margins were at 33.1% or US$ 63.0 million (R2,804.3
million) against 33.1% or US$ 60.6 million (R2,716.1 million) in
the previous quarter. Gross Margin flat compared to last quarter.
Marginal reduction in utilization is due to offshore bench and is
set off by operating efficiencies.
Non cash expenses in CGS line were US$ 5.6 million which include
depreciation and amortization expenses of US$ 5.1 million and stock
option charge of US$ 0.5 million. Corresponding expenses for Q4’10
were US$ 5.2 million for depreciation and amortization and US$ 0.8
million for stock option charge.
Selling General and Administrative
Expenses (SGA Expenses)
Sales and marketing expenses during the quarter were at US$ 17.6
million (R 785.7 million) at 9.3% as compared to US$ 15.8 million
(R 709.2 million) at 8.6% in the previous quarter due period
costs
G&A expenses during the quarter were at US$18.9 million (R
840.9 million) at 9.9% as compared to US$ 19.6 million (R 879.6
million) at 10.7%.
Non cash expenses in SGA for the quarter were US$ 4.0 million as
compared to US$ 4.1 million in previous quarter which includes
depreciation and amortization expenses at US$ 2.2 million for the
quarter as compared to US$ 2.0 million in previous quarter and
stock option charge at US$ 1.8 million for the quarter as compared
to US$ 2.1 million in previous quarter).
Foreign exchange
gain/loss
The revaluation and mark to market foreign exchange gain for the
quarter were at US$5.5 million (R 243.2 million) as compared to
foreign exchange gain of US$ 8.1 million (R 363.8 million) during
the previous quarter.
The quarter end rate for debtor’s revaluation was R 44.58.
Outstanding contracts at the end of Q1 2011 were about US$ 295
million which are contracted at an overall average rate of R 47.6
against average rupee cost rate of R 45.3
Operating Income
Operating Income including foreign exchange gain / loss was at
US$ 32.1 million (R 1428.1 million) or at 16.8% during the quarter
as compared to US$ 33.1 million (R1,483.1 million) or at 18.1%
during previous quarter.
Other Income
For Q1 CY2011, other income (including interest and dividend
income net of interest expenses, profit/loss on sale of investments
and other miscellaneous income) stood at 2.5% or US$ 4.8 million (R
212.6 million) during the quarter as compared to 3.1% or US$ 5.6
million (R 251.7 million) during previous quarter.
Other Income adjusted for Extra ordinary items is at US$ 4.3
million or at 2.3% during the previous quarter.
Profit before Tax
Profit before tax for the quarter at 19.4% was US$ 36.8 million
(R 1640.6 million), as compared to 21.2% or US$ 38.7 million (R
1,734.8 million) during previous quarter. Profit before Tax
adjusted for Extra Ordinary is at US$ 37.4 million or at 20.4%
during the previous quarter.
Income Taxes
Income tax for the quarter was at US$ 10.3 million (R 460.9
million) at an effective rate of 28.1%. Income Tax adjusted for
extra ordinary items was at US$ 5.5 million at an effective tax
rate of 14.8% during the previous quarter.
Net Income
Consequently, net income for the quarter is at 13.9% at US$ 26.5
million (R 1,179.8 million), lower by 32.8% as compared to previous
quarter net income of US$ 39.4 million (R1,764.6 million) at 21.5%.
Net Income adjusted for Extra ordinary items for previous quarter
was at US$ 31.8 million at 17.4% lower by 16.8% as compared to
previous quarter.
Balance Sheet and Cash Flow
changes
During the quarter, against net income of US$ 26.5 million
(R1,179.8 million), cash from operating activities was at US$ 11.2
million (R 499.4 million), net of changes in current assets and
liabilities of US$ (-)20.6 million (R 918.4 million),non cash
charges comprise of depreciation and amortization including
compensation cost of US$ 9.6 million and other adjustments of US$
(-) 4.2 million (comprising of deferred taxes US$2.3 million,
deferred cancellation losses relating to roll over cash flow hedges
US$0.8 million).
Over all cash and cash equivalents (including short term
investments) post translation loss of US$ 2.7 million, cash
received from issuances of stock against stock options US$ 4.2
million, capex of US$ 4.4 million were therefore at US$ 377.7
million (R16,822.6 million),as compared to US$ 362.4 million
(R16,234.2 million) at the close of previous quarter.
Receivables at the end of Q1 2011 were at US$ 114.1 million (R
5,080,4 million) as compared to US$ 121.6 million at the end of Q4
2010. Number of days outstanding (Including Unbilled receivables)
for current quarter was 77 days as compared to 71 days in Q4
2010.
Figures in Million INR except EPS and Share Data
UNAUDITED CONSOLIDATED STATEMENT OF INCOME : BASED ON
CONVENIENCE TRANSLATION For the quarter / period ended
Particulars Mar 31 2011 Mar 31 2010 Dec 31
2010 2010 Exchange rate$1 = INR 44.54
44.95 44.80 44.80 Revenue 8,476.6 7,745.4
8,200.3 31,436.1 Cost of revenues 5,488.9 4,595.5 5,293.0 19,666.7
Depreciation 183.3 181.5 191.2 759.7
Gross Profit
2,804.3 2,968.4 2,716.1 11,009.7 Sales
and marketing expenses 785.7 712.7 709.2 2,765.5 General and
administrative expenses 840.9 816.9 879.6 3,242.5 Provision for
doubtful debts and advances -7.2 26.1 7.9 27.7 Foreign exchange
(gain) / loss, net (243.2) (214.3) (363.8) (986.0)
Operating
income 1,428.1 1,627.0 1,483.1
5,960.0 Other income / (expense), net 212.6 198.2 251.7
872.7
Income before income taxes 1,640.6
1,825.2 1,734.8 6,832.7 Income taxes 460.9
328.1 -29.7 866.3
Net income/(loss) 1,179.8
1,497.1 1,764.6 5,966.4 Earning per
share - Basic 8.94 11.58 13.46 45.86 - Diluted 8.74 11.24 13.12
44.58
Weighted average number of common shares used in computing
earnings per share - Basic 131,991,860 129,251,485 131,142,633
130,101,442 - Diluted 134,910,508 133,200,892
134,506,173 133,848,374
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 quarter ended March 31, 2011
- 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.
- Attached Fact Sheet (results & analysis
tables)
About Patni Computer Systems Ltd:
Patni Computer Systems Limited (Patni) (BSE: 532517) (NSE:
PATNI) (NYSE: PTI) is a global provider of IT services and
business solutions, servicing global 2000 clients. Patni services
its clients through its micro-vertical focus in banking, financial
services (BFS) and insurance (I); manufacturing, retail, and
distribution (MRD); life sciences; communications, media, and
utilities (CMU).
With an employee strength of over 17,500; multiple global
delivery centers spread across 16 cities worldwide; 30
international offices across the Americas, Europe-Middle
East-Africa (EMEA), and Asia-Pacific; Patni has registered revenues
of US$ 702 million for the year 2010.
Patni’s service offerings include application development and
management, enterprise software & systems integration services,
business and technology consulting, product engineering services,
infrastructure management services, customer interaction services
& business process outsourcing, quality assurance and
engineering services.
Committed to quality, Patni adds value to its clients’
businesses through well-established and structured methodologies,
tools and techniques. Patni is an ISO 9001: 2008 certified and
SEI-CMMI-Dev Level 5 (V 1.2) organization. In keeping with its
focus on continuous process improvements, Patni adopts Six Sigma
practices as an integral part of its quality and process
frameworks.
Patni leverages its vast experience spanning three decades; deep
domain expertise; full-spectrum services; and suites of IP-led
solutions, methodologies and frameworks; in being an effective
business transformation partner to its clients.
For more information on Patni, visit www.patni.com.
IMPORTANT NOTE:
Certain statements in this release concerning our future growth
prospects are forward-looking statements, which involve a number of
risks, and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements. The risks
and uncertainties relating to these statements include, but are not
limited to, risks and uncertainties regarding fluctuations in
earnings, our ability to manage growth, intense competition in IT
services including those factors which may affect our cost
advantage, wage increases in India, our ability to attract and
retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our
international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks, liability
for damages on our service contracts, the success of the companies
in which Patni has made strategic investments, withdrawal of
governmental fiscal incentives, political instability, legal
restrictions on raising capital or acquiring companies outside
India, and unauthorized use of our intellectual property and
general economic conditions affecting our industry. The company
does not undertake to update any forward-looking statement that may
be made from time to time by or on behalf of the Company.
NOTES:
- Fiscal YearPatni follows a January –
December fiscal year. The current review covers the financial and
operating performance of the Company for the quarter ended March
31, 2011.
- U.S. GAAPAll figures in this release
pertain to accounts presented as per U.S. GAAP unless stated
otherwise.
- Percentage analysisAny 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 translationWe 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.
- ReclassificationCertain
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
Consolidated Statement of Income
4 B2 Consolidated Balance Sheet 5 B3 Consolidated Cash Flow
Statement 5 C
Reconciliation
between US GAAP and Indian GAAP Income Statement
5 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) UNAUDITED CONSOLIDATED STATEMENT OF
INCOME - US GAAP (US$ ‘000) for the quarter/ period ended
GAAP
NON GAAP Dec 31 2010
GAAP NON GAAP Particulars Mar 31 2011
Mar 31 2010
YoY change %
Dec 31 2010 QoQ change %
ExtraOrdinaryitems
**
Dec 31 2010(Excl
ExtraOrdinaryItems)
QoQ Change % 2010 (Audited)
ExtraOrdinaryItems**
2010(ExcludingExtra
Ordinaryitems)
Revenue 190,314 172,312 10.4 % 183,042 4.0 % 183,042 4.0 % 701,699
701,699 Cost of revenues 123,236 102,236 20.5 % 118,147 4.3 %
118,147 4.3 % 438,989 438,989 Depreciation 4,116 4,038 1.9 % 4,267
-3.6 % 4,267 -3.6 % 16,958 16,958
Gross Profit 62,962
66,038 -4.7 % 60,627 3.9
% 60,627 3.9 % 245,751
245,751 Sales and marketing expenses 17,640 15,856 11.3 %
15,830 11.4 % 15,830 11.4 % 61,729 61,729 General and
administrative expenses 18,880 18,173 3.9 % 19,633 -3.8 % 19,633
-3.8 % 72,377 72,377 Provision for doubtful debts and advances (161
) 581 -127.7 % 177 -190.7 % 177 -190.7 % 619 619 Foreign exchange
(gain) / loss, net (5,460 ) (4,767 ) 14.5 % (8,120 ) -32.8 % (8,120
) -32.8 % (22,009 ) (22,009 )
Operating income 32,063
36,196 -11.4 % 33,106 -3.2
% 33,106 -3.2 % 133,036
133,036 Other income / (expense), net 4,772 4,409 8.2 %
5,618 -15.1 % 1,356 4,262 12.0 % 19,480 1,064 18,415
Income
before income taxes 36,835 40,605 -9.3
% 38,724 -4.9 % 1,356
37,368 -1.4 % 152,515 1,064
151,451 Income taxes 10,347 7,299 41.8 % (664 ) -1658.7 %
(6,193 ) 5,529 87.1 % 19,336 (6,307 ) 25,643
Net
income/(loss) 26,488 33,306 -20.5 %
39,388 -32.8 % 7,549 31,839
-16.8 % 133,179 7,371 125,808
Earning per share - Basic $ 0.20 $ 0.26 -22.1 % $ 0.30 -33.2
% $ 0.24 -17.3 % $ 1.02 $ 0.97 - Diluted $ 0.20 $ 0.25 -21.5 % $
0.29 -33.0 % $ 0.24 -17.1 % $ 0.99 $ 0.94
Weighted average
number of common shares used in computing earnings per share -
Basic 131,991,860 129,251,485 131,142,633 131,142,633 130,101,442
130,101,442 - Diluted 134,910,508
133,200,892 134,506,173
134,506,173
133,848,374
133,848,374
** Reviews of certain tax positions for previous years has
resulted in net reversal leading to an increase in 2010 Net
Income.
1 – Due to write back of provision for interest/ penalties of
earlier years2 – Impact of 13 – Due to write back of provision for
income tax of earlier years4 – Impact of 2 and 3
A2) CONSOLIDATED
BALANCE SHEET USGAAP (US$ ‘000) Particulars
31-Mar-11(Unaudited)
31-Dec-10(Audited)
31-Mar-10(Unaudited)
Assets Total current assets 616,960 576,553 666,470 Goodwill
69,840 69,661 65,504 Intangible assets, net 31,059 32,229 21,840
Property, plant, and equipment, net 135,573 136,236 144,403 Other
assets 57,761 58,104 73,211
Total assets 911,192
872,784 971,428 Liabilities Total current
liabilities 121,797 122,826 109,641 Capital lease obligations
excluding current installments 167 136 79 Other liabilities 52,642
49,987 49,041
Total liabilities 174,605
172,949 158,761 Total shareholders’ equity 736,587
699,835 812,667
Total liabilities & shareholders’ equity
911,192
872,784 971,428
A3) CONSOLIDATED CASH FLOW STATEMENT USGAAP
(US$ ‘000) Particulars
Mar 31 2011(Unaudited)
Dec 31 2010(Unaudited)
Mar 31 2010(Unaudited)
2010(Audited)
Net cash provided by operating activities 11,213
42,705 13,275 136,574 Net cash provided
/(used in ) investing activities (42,048 )
(47,930 ) (21,317 ) 86,590
Capital expenditure, net (4,433 ) (2,927 ) (2,469 ) (11,091 )
Investment in securities, net (37,615 ) (44,434 ) (18,848 ) 117,805
Payment for acquisition/intangibles/Joint
Venture
- (569 ) - (20,124 )
Net cash provided / (used) in financing
activities 4,571 2,258 1,410
(205,603 ) Others 336 62 (50 ) (214 ) Common shares
issued / (Buy Back) 4,217 2,225 1,459 11,027 Dividend on common
shares 18 (29 ) 0 (216,416 )
Net increase / (decrease) in cash
and equivalents (26,264 ) (2,966 )
(6,633 ) 17,562 Effect of exchange rate
changes on cash and equivalents 461 (3,796 ) 1,892 (2,286 ) Cash
and equivalents at the beginning of the period 78,734 85,497 63,459
63,459
Cash and equivalents at the end of the period
52,931
78,734 58,718
78,734 B1)CONSOLIDATED
STATEMENT OF INCOME - INDIAN GAAP (RS. ‘000) For the quarter
/ period ended Particulars
Mar 31 2011(Audited)
Mar 31 2010(Audited)
YoY Change %
Dec 31 2010(Unaudited)
QoQ Change % 2010 (Audited) Sales and service income
8,593,821 7,816,300 9.9 % 8,208,711 4.7 % 31,880,847 Other income
532,209 501,629 6.1 % 646,925 -17.7 % 2,194,249
Total income
9,126,030 8,317,929 9.7 %
8,855,636 3.1 % 34,075,096 Staff costs
5,372,042 4,562,003 17.8 % 4,966,579 8.2 % 18,898,084 Selling,
general and administration expenses 1,997,085 1,834,087 8.9 %
2,101,908 -5.0 % 8,060,461 Interest 4,913 21,906 -77.6 % 10,219
-51.9 % 47,765
Total expenditure 7,374,040
6,417,996 14.9 % 7,078,705 4.2
% 27,006,310 Net profit before tax and
adjustments 1,751,990 1,899,933 -7.8
% 1,776,931 -1.4 % 7,068,786
Provision for taxation 129,145 329,575 -60.8 % 27,543 368.9 %
837,071
Profit/(loss) for the period after taxation
1,622,845 1,570,358 3.3 %
1,749,388 -7.2 % 6,231,715 Profit and
loss account, brought forward 18,932,587 22,972,249 -17.6 %
17,838,246 6.1 % 22,972,249
Amount available for
appropriation 20,555,432 24,542,607 -16.2
% 19,587,634 4.9 % 29,203,964
Proposed dividend on equity shares - - 0.0 % - 0.0 % 2,221 Special
Interim Dividend on equity shares - - 0.0 % - 0.0 % 8,244,435
Dividend tax - - 0.0 % - 0.0 % 1,369,675 Transfer to general
reserve - - 0.0 % 655,046 -100.0 % 655,046
Profit and loss
account, carried forward 20,555,432 24,542,607
-16.2 % 18,932,588 8.6 %
18,932,587 Earning per share (Rs. per equity share of Rs.
2 each) - Basic 12.30 12.15
1.2 % 13.34
-7.8 % 47.90 - Diluted 12.02 11.75
2.3
% 12.99
-7.5 % 46.44
Weighted average
number of common shares used in computing earnings per share -
Basic 131,991,860 129,251,485 131,142,633 130,101,442 - Diluted
135,059,362 133,642,520
134,650,351 134,193,727
B2) AUDITED CONSOLIDATED BALANCE
SHEET - INDIAN GAAP (RS. ‘000) Particulars
31-Mar-11
31-Dec-10
31-Mar-10
Assets Current assets, loans and advances 14,112,490
14,085,747 12,786,771 Goodwill 4,836,443 4,838,060 4,629,076 Fixed
assets(Net of Depreciation) 8,146,286 8,217,406 8,103,057
Investments 14,363,442 12,614,890 18,644,419 Deferred tax asset,
net 632,505 695,065 778,338
Total assets 42,091,166
40,451,168 44,941,661 Liabilities Current
liabilities and provisions 7,499,330 7,786,917 7,593,076 Secured
loans 11,349 10,649 7,599 Deferred tax liability, net 80,998 31,246
65,820
Total liabilities 7,591,677 7,828,812
7,666,495 Total shareholders’ equity
34,499,489 32,622,356 37,275,166
Total
liabilities & shareholders’ equity
42,091,166 40,451,168
44,941,661
B3) CONSOLIDATED CASH FLOW STATEMENT -
INDIAN GAAP (RS ‘000)
Particulars
Mar 31 2011(Audited)
Dec 31 2010(Unaudited)
Mar 31 2010(Audited)
2010(Audited)
Cash flows from / (used in) operating activities (A) 351,188
1,792,035 449,134 5,693,282 Cash flows from / ( used in) investing
activities (B) (1,727,339 ) (2,207,702 ) (802,967 ) 4,560,215 Cash
flows from / (used in) from financing activities (C) 191,984
103,021 64,892 (9,626,685 ) Effect of changes in exchange rates (D)
17,638 (14,066 ) (26,650 ) (45,754 )
Net increase / (decrease)
in cash and cash equivalents during the period (A+B+C+D)
(1,166,529 ) (326,712 ) (315,592
) 581,058 Cash and cash equivalents at the
beginning of the period 3,533,680 3,860,392 2,952,622 2,952,622
Cash and cash equivalents at the end of the period
2,367,151 3,533,680
2,637,030 3,533,680
C) Reconciliation of Income as per
Indian GAAP and US GAAP(RS. ‘000)
Particulars Mar 31 2011 Mar 31 2010 Dec 31
2010 2010 Consolidated net income as per
Indian GAAP 1,622,845 1,570,358 1,749,388
6,231,715 Income taxes (334,700 ) (200 ) 54,800 (42,200 )
Foreign currency differences (11,700 ) (20,500 ) (4,400 ) (29,100 )
Employee retirement benefits (25,000 ) 15,400 (18,300 ) 57,400 ESOP
related Compensation Cost (21,500 ) (16,100 ) 100 (48,000 )
Amortisation of Intangibles , arising on Business acquisition
(32,600 ) (23,600 ) (34,500 ) (119,100 ) Others (1,500 ) 1,300
10,000 7,200
Total (427,000 ) (43,700
) 7,700 (173,800 )
Consolidated net income as per US GAAP
1,195,845 1,526,658
1,757,088 6,057,915
D1) UNAUDITED CONSOLIDATED STATEMENT
OF INCOME (RS. ‘000): BASED ON CONVENIENCE TRANSLATION For
the quarter / period ended Particulars Mar 31
2011 Mar 31 2010 Dec 31 2010 2010
Exchange rate$1 = INR 44.54 44.95 44.80
44.80 Revenues 8,476,575 7,745,434 8,200,285 31,436,099 Cost
of revenues 5,488,938 4,595,495 5,293,003 19,666,719 Depreciation
183,319 181,529 191,180 759,724
Gross Profit
2,804,318 2,968,411 2,716,102
11,009,657 Sales and marketing expenses 785,685 712,705
709,204 2,765,456 General and administrative expenses 840,899
816,881 879,572 3,242,501 Provision for doubtful debts and advances
(7,161 ) 26,095 7,941 27,710 Foreign exchange (gain ) / loss, net
(243,171 ) (214,278 ) (363,759 ) (986,005 )
Operating income
1,428,066 1,627,008 1,483,144 5,959,995
Other income / (expense), net 212,558 198,191 251,696 872,685
Income before income taxes 1,640,623 1,825,199
1,734,840 6,832,681 Income taxes 460,862 328,094
(29,740 ) 866,267
Net income/(loss) 1,179,761
1,497,105 1,764,580 5,966,414 Earning per
share - Basic 8.94 11.58 13.46 45.86 - Diluted 8.74 11.24 13.12
44.58
Weighted average number of common shares used in computing
earnings per share - Basic 131,991,860 129,251,485 131,142,633
130,101,442 - Diluted 134,910,508 133,200,892
134,506,173 133,848,374
D2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP
(RS. ‘000): BASED ON CONVENIENCE TRANSLATION Particulars
As on31-Mar-11
As on31-Dec-10
As on31-Mar-10
Exchange rate$1 = INR 44.54 44.80 44.95
Assets Total current assets 27,479,386 25,829,573 29,957,845
Goodwill 3,110,693 3,120,833 2,944,383 Intangible assets, net
1,383,351 1,443,838 981,689 Property, plant, and equipment, net
6,038,411 6,103,393 6,490,917 Other assets 2,572,668 2,603,074
3,290,839
Total assets 40,584,508 39,100,712
43,665,673 Liabilities Total current liabilities
5,424,834 5,502,604 4,928,376 Capital lease obligations excl.
installments 7,423 6,081 3,555 Other liabilities 2,344,659
2,239,415 2,204,371
Total liabilities 7,776,916
7,748,100 7,136,302 Total shareholders’ equity
32,807,591 31,352,612 36,529,370
Total liabilities &
shareholders’ equity 40,584,508
39,100,712 43,665,673
D3) UNAUDITED CONSOLIDATED CASH FLOW
STATEMENT USGAAP (RS ‘000): BASED ON CONVENIENCE TRANSLATION
Particulars Mar 31 2011 Dec 31 2010 Mar 31
2010 2010 Exchange rate $1 = INR 44.54
44.80 44.95 44.80 Net cash provided by
operating activities 499,437 1,913,204
596,725 6,118,524 Net cash provided /(used in )
investing activities (1,872,813 )
(2,147,253 ) (958,219 )
3,879,246 Capital expenditure, net (197,434 ) (131,129 )
(110,999 ) (496,875 ) Investment in securities, net (1,675,379 )
(1,990,634 ) (847,220 ) 5,277,683
Payment for acquisition/intangibles/Joint
Venture
- (25,491 ) - (901,562 )
Net cash provided / (used) in financing
activities 203,587 101,176 63,360
(9,211,009 ) Others 14,960 2,788 (2,246 ) (9,567 )
Common shares issued / (Buy Back) 187,813 99,698 65,604 494,013
Dividend on common shares 814 (1,310 ) 2 (9,695,455 )
Net
increase / (decrease) in cash and equivalents (1,169,789
) (132,873 ) (298,134 )
786,761 Effect of exchange rate changes on cash and
equivalents 20,529 (170,075 ) 85,026 (102,432 ) Cash and
equivalents at the beginning of the period 3,506,827 3,830,246
2,852,487 2,842,968
Cash and equivalents at the end of the
period 2,357,567 3,527,298
2,639,379 3,527,298
E1) REVENUE ANALYSIS
Revenue By Geographical Segments Mar 31 2011 Dec
31 2010 Mar 31 2010 2010 Americas 78.0 % 81.8 %
79.7 % 80.7 % EMEA 14.6 % 11.3 % 13.4 % 12.1 % APAC 7.5 % 6.9 % 6.8
% 7.2 %
Total 100.0 %
100.0 % 100.0 %
100.0 % Revenue by Industry
Verticals Mar 31 2011 Dec 31 2010 Mar 31
2010 2010 Insurance 29.0 % 31.3 % 29.0 % 30.3 %
Manufacturing, Retail and Distribution 30.6 % 30.6 % 30.8 % 30.3 %
Financial Services 11.1 % 11.4 % 11.7 % 11.6 % Communications,Media
& Utilities 12.1 % 9.7 % 12.2 % 11.2 % Product Engineering
Services 17.3 % 16.9 % 16.3 % 16.7 %
Total
100.0 % 100.0 %
100.0 % 100.0 %
Revenue by Service Offerings Mar 31 2011 Dec 31
2010 Mar 31 2010 2010 Application Development
& Maintenance 58.5 % 61.3 % 64.6 % 62.4 % Package software
implementation 13.4 % 11.5 % 13.4 % 12.5 % Product Engineering
Services 12.7 % 12.5 % 12.1 % 12.4 % Infrastructure Management
Services 5.2 % 4.9 % 5.0 % 5.1 % Business Process Outsourcing 10.2
% 9.9 % 4.9 % 7.5 %
Total 100.0 %
100.0 % 100.0 %
100.0 % Revenue by Project Type
Mar 31 2011 Dec 31 2010 Mar 31 2010
2010 Time and Material 54.8 % 53.2 % 56.4 % 55.4 % Fixed
Price (including Fixed Price SLA) 45.2 % 46.8 % 43.6 % 44.6 %
Total 100.0 % 100.0
% 100.0 % 100.0 %
E2) CLIENT- REVENUE METRICS
Particulars Mar 31 2011 Dec 31 2010 Mar 31
2010 2010 Top client 10.5 % 11.5 % 11.7 % 10.9 % Top 5
Clients 33.7 % 35.9 % 36.4 % 35.9 % Top 10 Clients 45.7 % 48.8 %
48.7 % 48.8 %
Client data No of $1 million clients 96 99 92
99 No of $5 million clients 29 28 27 28 No of $10 million clients
15 16 16 16 No of $50 million clients 3 3 3 3 No of new clients 14
19 9 52 No. of active Clients 299 297 260 297 % of Repeat Business
95.8 % 95.6 % 92.5 % 94.6 %
E3) REVENUE MIX AND UTILIZATION Mar
31 2010 Dec 31 2010 Mar 31 2010 2010
Efforts Onsite 26.5 % 26.7 % 25.2 % 26.7 % Offshore 73.5 %
73.3 % 74.8 % 73.3 %
Revenue Onsite 52.6 % 52.7 %
53.2 % 53.7 % Offshore 47.4 % 47.3 % 46.8 % 46.3 %
Utilization 70.0 % 72.4 % 79.9 % 75.3 %
Utilization (Excl Trainees) 74.5 % 76.0 %
84.8 % 78.7 %
E4) EMPLOYEE METRICS Mar 31 2011 Dec 31
2010 Mar 31 2010 2010 Total Employees
17,739 17,642 13,959 17,642 Offshore
14,399 14,326 11,118 14,326 Onsite 3,340 3,316 2,841 3,316
Total 17,739 17,642 13,959
17,642 Sales & Support Staff 1,485 1,491 1,415
1,491 Net Additions 97 1,086 (36) 3,647 Attrition (LTM) excluding
BPO 24.6% 25.2% 17.7% 25.2%
E5) FACILITIES
- INDIA INFRASTRUCTURE (as on Mar 31, 2011)
Operational**
UnderConstruction/Furnishing
Location
Built Up Area(Sq ft)
No. of Seats
Built Up Area(Sq ft)
No. of Seats Mumbai 183,648 1,825 Navi Mumbai 136,669 1,818
Airoli 462,845 4,473 Pune 254,383 2,743 Gandhinagar 52,277 584
Noida 460,000 3,247 Hyderabad 97,497 757 Bangalore 78,343 784
Chennai 148,000 1,189
1,873,662 17,420
- - ** Owned plus leased
E6)
RUPEE - CURRENCY RATES AGAINST US DOLLAR
Mar 31 2011 Dec 31 2010 Mar 31 2010
Rupee Period end rate
44.58 44.70 44.91 Period average rate 45.23 44.83
45.89
Other Currencies (Average Rate)
AUD 1.00 0.99 0.90 EURO 1.37 1.36 1.38 GBP 1.60 1.58
1.56 YEN 0.01 0.01 0.01