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Slower revenue growth coupled with increasing costs and a surge in the effective tax rates caused Mumbai-based Patni Computer Systems to report a 3.3 per cent rise in net profit for the first-quarter ended March 31, 2011.
Net profits for the software services company, which was recently acquired by Nasdaq-listed iGATE, stood at Rs 162.2 crore as against Rs 157 crore in the same quarter a year ago.
Total revenues for the period under review went up 9.7 per cent to close at Rs 912.6 crore (Rs 831.7 crore) Income-tax for the quarter was at Rs 46 crore at an effective rate of 28.1 per cent. The tax incidence on IT companies has gone up as many of their delivery units have now come out of the Software Technology Parks of India scheme and hence are no longer eligible for tax sops. It reported a foreign-exchange gain of $5.5 million (Rs 24.3 crore) in the first quarter, compared with $4.8 million.
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