Thursday, July 29, 2010

Patni goes aggressive on managed services

“We have bought a platform solution from an existing client in the manufacturing segment for $13 million. Through this platform we shall be providing services to this particular client. Besides this client, we can offer the services to others as well. This will give us non-linearity and provide predictability of revenue,” said Jeya Kumar, managing director and CEO of Patni Computer Systems in an analyst call.

As part of the platform acquisition, the firm has added about 200 people, mostly onsite-based.

The firm had bought a similar platform-based offering about a year ago from one of its competitors for $25 million.

“We have positioned ourselves very confidently in the marketplace in the platform solution that we acquired earlier,” said Surjeet Singh, CFO of Patni.

Meanwhile, the firm is eyeing more contracts in the range of $30-50 million. “These are broad based and under discussion. They are from manufacturing and telecom segments,” said Kumar.

Patni’s revenues as per US GAAP for the second quarter stood at $167.6 million (Rs 777.6 crore), down 2.8% from $172.3 million (Rs 774.5 crore) in the first quarter. The company attributed the revenue drop due to project delays by some of its BPO clients.

The firm’s operating profits too reduced by 13% over the first quarter due to a combination of forex valuation changes and salary hikes. Net profit for the reporting quarter dropped 4.7% at $31.7 million over first-quarter figures.

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