iGate Corp’s net profit plummets 65% on interest outgo of Patni acquisition
06 Aug 2011
Nasdaq-listed iGate Corporation's second quarter net profit plummeted 65 per cent bogged down by interest outgo incurred by the acquisition of a majority stake in Indian technology firm Patni Computer Systems.
The US-based firm's net profit fell to $3.99 million in April-June quarter, compared with a net profit of $11.15 million posted during the same period of previous financial year.
iGate's results for the second quarter include Patni's results of operations since 16 May 2011, the company said in a statement.
Earlier this year, iGate had acquired nearly 83 per cent stake in Patni Computers for about $1.22 billion. The transaction was completed in May.
Following the acquisition, Patni would continue to be listed on the Indian bourses as iGate's subsidiary, while iGate will be listed on the Nasdaq. Both the companies jointly go to market under the brand name iGate Patni.
"We have successfully completed the first phase of integration, integrating the go-to market functions of both the organisations and are well underway into the delivery and shared services integration," iGate Patni CEO Phaneesh Murthy said.
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