iGate Patni Q2 net income plunges 93% on foreign exchange loss

NEW DELHI: IT firm iGate Patni on Monday reported a decline of nearly 93 per cent in net income to Rs 10.8 crore for the second quarter ended June 30, 2011, primarily on account of foreign exchange losses.

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

"... We expect our results to stabilise in 2012, after all the integration expenses and the accounting charges related to the acquisition (of Patni by US-based iGate) have evened out," Patni CEO and MD Phaneesh Murthy said. On May, 2011, iGate Corporation acquired an 82.4 per cent stake in Patni Computers.

Revenues for the quarter stood at Rs 822 crore, up 5.70 per cent from Rs 777.6 crore in the corresponding quarter of 2010.

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

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

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

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