IT firm iGate Patni has reported a decline of nearly 93 per cent in net income to Rs 10.8 crore for the second quarter ended June 30, 2011, primarily on account of foreign exchange losses.
The company had posted a net income of Rs 147 crore during the April-June quarter of 2010, iGate Patni said in a statement today.
“... We expect our results to stabilise in 2012, after all the integration expenses and the accounting charges related to the acquisition (of Patni by US-based iGate) have evened out,” the Patni CEO and MD, Mr Phaneesh Murthy, said.
In May, iGate Corporation had acquired an 82.4 per cent stake in Patni Computers.
During the second quarter this fiscal, revenues stood at Rs 822 crore, up 5.7 per cent from Rs 777.6 crore in the corresponding quarter of 2010. The company reported a foreign exchange loss of Rs 31.17 crore against Rs 19.76 crore.
“For convenience, the company has used a cut-off date of May 15, 2011. Post May 15, 2011, consolidated financial statements reflect the push down accounting treatment,” the company said.
During the quarter, the company generated cash flow of $16.5 million from operating activities and ended the period with $394 million in cash and short-term investments.
As on June 30, 2011 the company’s headcount stood at 18,372.
Meanwhile, the company shares were trading at Rs 319 on the BSE, down 4.19 per cent from the previous close.