Syntel's Q3 profit up 4% at $61.6 million

NEW DELHI: Nasdaq-listed software company Syntel today reported 4 per cent growth in net profit at $ 61.6 million for the third quarter ended September 30.

It had posted net profit of $ 59.4 million in the year-ago period, the company said in a statement.

Syntel's revenue for the July-September quarter this year rose 9 per cent to $ 228.3 million, over $ 209.9 million in Q3 of last year.

For the April-June quarter this year, its net profit was 59.3 million, while revenue at $ 228.3 million.

During the third quarter, banking and financial services accounted for 51 per cent of total revenue, with healthcare and life sciences at 16 per cent, retail, logistics and telecom at 15 per cent, insurance at 15 per cent and manufacturing at three per cent.

Syntel CEO and President Nitin Rakesh said: "We experienced some temporary headwinds in our Health Care and Life Science segment that have impacted our full-year 2014 growth outlook."

However, he added that the firm remains confident that the healthcare industry holds considerable promise for future growth and it will continue to invest in all segments of the industry.

On outlook, Syntel said: "Based on current visibility levels and an exchange rate assumption of 61 Indian rupees to the dollar, the company is updating 2014 revenue to a range of $ 908-915 million from $ 920-940 million."

During the third quarter, the firm spent $ 5.1 million in CAPEX, largely in support of campus infrastructure and finished the quarter with cash and short-term investments of $ 808.7 million.

The company also added 211 employees, ending the quarter with 24,333 employees globally.