iGate Patni net income down 93 per cent on forex losses

IT firm iGate Patni has posted a near 93 per cent decline in net income to Rs10.8 crore for the second quarter ended 30June, 2011, mainly on account of foreign exchange losses.
 
The company had posted a net income of Rs147 crore during the April-June quarter of 2010, according to a statement issued by the company today.

Pahneesh Murthy, CEO and MD of the company, expects the company's results to stabilise in 2012 following the evening out of all the integration expenses and the accounting charges related to the acquisition (of Patni by US-based iGate).

In May, iGate Corporation acquired an 82.4 per cent stake in Patni Computers and during the second quarter of this fiscal, revenues stood at Rs822 crore, up 5.7 per cent against Rs777.6 crore in the corresponding quarter of 2010. The company posted a foreign exchange loss of Rs31.17 crore against Rs19.76 crore.

According to the company, it used a cut-off date of 15 May 2011 and the consolidated financial statements since then reflected the pushdown accounting treatment.

The quarter saw the company generate a cash flow of $16.5 million from operating activities, ending the period with $394 million in cash and short-term investments. As of 30 June 2011, the company's headcount stood at 18,372.

Shares of the company were trading at Rs319, down 4.19 per cent from the previous close.