Q2 Net Income increases 44% yoy to $25.1M (Rs.121 crore); Q2 revenue increased 4% sequentially to $100.1M (Rs.481 crore); Q2 Operating Income grows 20% yoy to $27.4M (Rs.132 crore); Q2 EPS of $0.61 per diluted share.
Mumbai, Maharashtra, India, July 31, 2009 (PRESSbooth.ORG) -- Syntel, Inc. (NASDAQ: SYNT), a global information technology services and Knowledge Process Outsourcing (KPO) firm, announced financial results for the second quarter ended June 30, 2009.
Highlights
• Q2 Net Income increases 44% yoy to $25.1M (Rs.121 crore)
• Q2 revenue increased 4% sequentially to $100.1M (Rs.481 crore)
• Q2 Operating Income grows 20% yoy to $27.4M (Rs.132 crore)
• Q2 EPS of $0.61 per diluted share
• Added 3 new clients this quarter;
• Work progresses on new campus construction in Chennai.
Phase I is tracking for initiation in Q4 of 2009.
• Syntel is updating 2009 guidance,
-from Revenue of $385 million (Rs.1875 crore) to $415 million(Rs.2021 crore) to Revenue of $395 million (Rs.1924 crore) to $415 million(Rs.2021 crore) and
-from EPS of $2.12 to $2.42 to EPS of $2.40 to $2.50
Syntel's total revenue for the second quarter increased 4 percent to $100.1 million (Rs.481 crore), compared to $96.4 million (Rs.464 crore) in the first quarter of 2009 and decreased 3% compared to $103.4 million (Rs 497 crore) in the prior year period. The Company's gross margin was 48.2 percent in the second quarter, compared to 41.1 percent in the prior-year period (710 bps increase).
Syntel's income from operations expanded to 27.4 percent in the second quarter, compared to 22.1 percent in the prior-year period (530 bps increase) .
Net income for the second quarter was $25.1 million (Rs.121 crore) or $0.61 per diluted share, compared to $17.4 million (Rs.84 crore) or $0.42 per diluted share in the prior-year period.
During the second quarter, Syntel added 3 new clients and two new "Hunting Licenses" or preferred partnership agreements, bringing the total number to 96 strategic relationships.
Operational Highlights
“Syntel was encouraged by improved stabilization in the marketplace and the increasingly positive discussions initiated with our clients during the quarter,” said Keshav R Murugesh, Chief Executive Officer& President, Syntel. “While discretionary projects remain sidelined, customers are beginning to once again look at cost reduction initiatives which are aligned with their longer-term strategic objectives.”
“The timing of new project starts and changes in the marketplace are uncertain going forward. However, based on today’s economic environment and our current visibility levels, we believe that the second quarter revenue run-rate represents a minimum level for the balance of 2009. Syntel will continue to focus on driving key investment initiatives and proactive cost management in the second half of the year with the objective of properly positioning the company for long-term sustainable growth.”
Syntel has invested close to $37M (Rs. 185 crore) in 2008 and has plan to invest approx. $25Mn (Rs.120 crore) in 2009 as it makes progress on construction of its SEZ campuses in Pune and Chennai. Phase 1 of our new Chennai campus having built up space of 6,50,000 sq.ft. and 5000 seats will be ready by Q4 of 2009. We will soon also commence Phase 2 of Pune SEZ with 4,500 seating capacity, Cafeteria and a Training capacity of 1,200 seats.
2009 Guidance
Based on current visibility levels and an exchange rate assumption of 48.7 rupees to the dollar, the Company is updating 2009 guidance from revenue of $385 million(Rs.1875 crore) to $415 million(Rs.2021 crore) and EPS in the range of $2.12 to $2.42 to revenue of $395 million(Rs.1924 crore) to $415 million(Rs.2021 crore) and EPS in the range of $2.40 to $2.50
About Syntel: (NASDAQ: SYNT)
Syntel is a leading global provider of integrated information technology and Knowledge Process Outsourcing (KPO) solutions spanning the entire lifecycle of business and information systems and processes. The Company is driven by its mission to create new opportunities for clients by harnessing the passion, talent and innovation of Syntel employees worldwide. Syntel leverages dedicated Centers of Excellence, a flexible Global Delivery Model, and a strong track record of building collaborative client partnerships to create sustainable business advantage for Global 2000 organizations. Recently named one of the "50 Best Managed Global Outsourcing Vendors" by The Black Book of Outsourcing, Syntel is assessed at SEI CMMi Level 5, and is ISO 27001 and ISO 9001:2000 certified. As of June 30, 2009, Syntel employed more than 11,300 people worldwide. To learn more, visit us at: www.syntelinc.com.
Safe Harbor Provision
This news release includes forward-looking statements, including with respect to the future level of business for Syntel, Inc. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors set forth in the Company's Annual Form 10-K document dated March 12, 2009 and the Company’s Quarterly Report on Form 10-Q for the period ending March 31, 2009.
Contact:
Sudhanshu Patni,
Syntel,
Cell No.# 9930313192,
Sudhanshu_patni @ syntelinc.com
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