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PATNI COMPUTER SYSTEMS (P) LTD
 
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PATNI COMPUTER SYSTEMS (P) LTD

(IT/Telecom/Biotech) Mumbai INDIA
Power News
Hold Patni Computer; target of Rs 480: PINC Research    PINC Research has maintained hold rating on Patni Computer Systems with a target price of Rs 480 in its April 27, 2011 research report. 'Patni Computer Systems reported Q1CY11 revenue of USD 190.3 million, 4%QoQ growth, in-line expectation (PINCe USD 188.5 million). The EBITDA margin declined 6bpsQoQ against our expectation of rise. Lower forex gain of USD 5.5 million, higher tax rate at 28% led to lower than expected PAT of USD 26.5 million (PINCe USD 30.2 million). Revenue grew 3.4%QoQ to Rs 8,477 million (PINCe Rs 8,407 million). EBITDA margin for the quarter stood at 16.1%. EPS was Rs 8.7 (declined 33.4%QoQ and 22.2%YoY). Major vertical Insurance with 29.0% revenue contribution declined 3.6%QoQ. Manufacturing & retail (30.6% contribution) and communication, media & utilities (12.1% contribution) grew 4.0%QoQ and 29.7%QoQ respectively while financial services remained flat at 1.3%QoQ.' 'Discretionary IT spending improving as Package implementation grew 21%QoQ. ADM declined marginally 0.8%QoQ, BPO grew 7.1%QoQ and IMS grew strongly 10.4%QoQ. EMEA grew strongly 34.4%QoQ and APAC grew 13.0%QoQ while there was marginal decline of 0.8%QoQ in US. Non-top 10 clients grew 10.3%QoQ while top 10 clients declined by 2.6%QoQ. Attrition rate declined marginally by 60bps to 24.6%. Utilisation declined by 240bps to 70.0%. Added 14 new clients in the quarter to reach 299 active clients.? 'Patni's Q1 results are in-line expectation at the revenue line but lower than expected margin and higher tax rates resulted in lower than expected PAT. The overall revenue outlook is better than before with the new management control but there will be pressure on margins. The open offer is complete and the management is planning to merge Patni with iGate. The resulting synergies are expected to save USD 30 million. We maintain 'HOLD' recommendation on the stock with a target price of Rs 480,' says PINC Research report. Source : Moneycontrol.com
PATNI COMPUTER SYSTEMS (P) LTD 's City : Mumbai
PATNI COMPUTER SYSTEMS (P) LTD 's Country : INDIA
 
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