Patni Q3 Revenues up 3.3% at $167.2 million Net Income* up 24.5% QoQ

• Press Release
• Source: Patni Computer Systems Limited
• On 11:01 am EDT, Saturday October 31, 2009

MUMBAI, India--(BUSINESS WIRE)--Patni Computer Systems Limited (Patni) today announced its financial results for the third quarter ended 30^th September 2009.

*Important Note: In Q3 2009, based on prior years tax reviews by IRS, which were concluded during the quarter, certain provisions have been reversed resulting in one time increase in gross profit of US$ 1.2 million, other income of US$ 2.1 million and decrease in tax expense of US$ 8.1 million. Consequently, profit after tax has increased by US$ 11.4 million for the quarter. Similarly in our Q3 2008 release, prior year’s tax reviews by IRS, had resulted in reversal of certain provisions which led to a one time increase in gross profit of US$ 2.8 million, other income of US$ 8.3 million and decrease in tax expense of US$ 7.7 million. Consequently, profit after tax had increased by US$ 18.7 million for Q3 2008. Variations in Patni’s Q3 2008 & Q3 2009 financial performance as a result of such write backs have been referred to as “Extra Ordinary Items” in this press release. Financial Performance excluding these Extra ordinary items has been considered for comparative performance review in this release.

Performance Highlights for the quarter ended September 30,2009

• Revenues for the quarter at US$ 167.2 million (Rs.8,040.2 million)

• Up 3.3% QoQ from US$ 161.9 million (Rs.7,729.1 million)
• Down 8.9 % YoY from US$ 183.5 million (Rs. 8,522.5 million)
• Revenue concentration from top client lower at 11.9% against 12.3%, Top 5 up at 38.3% from 37.2%, $ 1m relationships up at 92 , 7 new clients added during the quarter.

• Operating Income for the quarter at US$ 27.1 million (Rs.1,303.1 million)

• Up 11.7% QoQ from US$ 24.3 million (Rs.1,158.3 million)
• Down 2.0% YoY from US$ 27.6 million (Rs.1,283.9 million)
• Operating Income adjusted for Extra Ordinary items is at US$25.9 million for the quarter, + 6.9% QoQ and +4.3% YoY .

• Net Income for the quarter at US$ 35.7 million (Rs. 1,715.7 million)

• Up 24.5% QoQ from US$ 28.7 million (Rs. 1,368.5 million)
• Down 17.2% YoY from US$ 43.1 million (Rs.2,001.9 million)
• Net income adjusted for Extra Ordinary items is at US$ 24.3 million for the quarter, (-)15.2% QoQ and (-)0.4% YoY

• EPS for the quarter at US$ 0.28 per share (US$ 0.56 per ADS).

• EPS adjusted for Extra Ordinary items is at US$ 0.19 per share (US$ 0.38 per ADS)

Future Outlook:

• Q4 CY2009 Revenues are expected to be at US$ 168 million to US$169 million and Net Income (Excluding the hedging Gain/Loss) is expected to be in the range of US$ 24 million to US$ 25 million

• This guidance is based on constant Rupee -USD rate of Rs.46.5 and constant GBP –USD rate of 1.65, EURO-USD rate of 1.40.
• Mark to Market foreign exchange gain during Q4 2009 is expected to be in the range of US$ 1 to $ 1.5 million based on current estimates. This may change depending on further currency movements during the quarter and will impact our Net Earnings accordingly.

Management Comments

Mr. Jeya Kumar, Chief Executive Officer, said, “ Our Overall performance from the quarter has been ahead of our expectations on all counts .We are very pleased with these results and hard work of our employees in these difficult times. While the global macro economic environment is still thwart with risks and challenges, the fading of solvency risks is positive with stable market place. Deflationary pressure on overall global IT services market is likely to continue for foreseeable future, however the off shoring and global delivery services market share will increase over time. We find ourselves in a good position competitively with our micro vertical focused strategy even as sustained visibility to growth is at least 2-3 quarters away.”

Speaking on the occasion, Mr. Surjeet Singh, Chief Financial Officer, said, “Volumes were up during the quarter and pricing was stable. All customer categories grew on volumes and marginal forex change. Cost realignment gains continued during the quarter as our operating earnings remained ahead of our expectations. With continued investments in geographic expansion, we are confident of capturing faster incremental growth along with inorganic additions besides gains on resultant absorption benefits in our cost base over the next 12- 18 months.”

Corporate Developments

Appointments

• Key leadership Appointments

Mr. Vijay Mehra has been appointed as Executive Vice President and Head of Business Verticals. Vijay was until recently, Global CIO at Essar Group of Companies and comes with over 20 years of global management and consulting experience. Vijay will define and boost Patni’s micro-verticals strategy, structure, systems and skills.

Mr. Naresh K. Lakhanpal,has been appointed as President, Patni Americas Inc. Naresh has over 23 years of diverse business experience including operations, sales, engineering, product development and strategy.

Mr. V Mathivanan , has been appointed President, APAC and will lead this business from Singapore, where Patni has recently established its new regional headquarters. Mathi comes with over 30 years of experience specializing in IT with companies such as Singapore Network Services (SNS) and CrimsonLogic.

Innovation

• Patni Computer Systems Unveils Cloud Services Strategy

Patni’s first in a series of consulting and software services initiatives designed to help customers accelerate deployment to a cloud environment. The first offering, Patni’s Cloud Acceleration Program (CAP), gives independent service providers and application developers a structured, business-driven approach based on Patni’s proven process and methodologies that take the guesswork out of transitioning to cloud-based solutions.

Awards & Recognition

• Patni Ranked #7 Preferred Employer in DQ-IDC’s Best Employer Survey 2009

Patni has been conferred the #7 Preferred Employer rank in DQ-IDC’s Best Employer Survey 2009 based on an industry-wide employee satisfaction survey. The company was also ranked #16 Best IT Employer after a comprehensive analysis of HR policies across the industry. This rank is significant as it indicates a jump of 13 places from last year for Patni.

• Patni Named “Challenger” in Magic Quadrant for Help Desk Outsourcing, North America

Patni has been positioned by leading industry analyst firm Gartner, Inc., in the “Challengers” quadrant of its “Magic Quadrant for Help Desk Outsourcing, North America” 2009 report by Richard Matlus and William Maurer. The report is designed to help corporations identify and evaluate outsourcing external service providers (ESPs) for help desk services.

Client Initiatives

• Patni helps “Get Connected” deliver innovative online directory of help and support services for young people in crisis

Patni has collaborated with leading UK charity “Get Connected” to build a new online directory service, ‘Webhelp 24/7’, that will help young people find solutions to a wide range of issues, from coping with mental illness to learning disabilities. “Get Connected” has also been chosen as Patni’s Charity of The Year for the EMEA region.

(Figures in Million US$ except EPS and Share Data)

A1) CONSOLIDATED STATEMENT OF INCOME
For the quarter / period ended
Particulars			Sep 30 2009 (Unaudited)					Extra Ordinary Items**				NON GAAP Sept 2009 (Excluding Extra Ordinary Items)					Sep 30 2008 (Unaudited)					Extra Ordinary Items**				NON GAAP Sept 2008 (Excluding Extra Ordinary Items)					YoY change %				Jun 30 2009 (Unaudited)					QoQ change %				Non GAAP YoY change %				Non GAAP QoQ change %				2008 (Audited)				Extra Ordinary Items**				NON GAAP 2008 (Excluding Extra Ordinary Items)
Revenue				167.2									167.2					183.5									183.5				-8.9	%				161.9				3.3	%			-8.9	%			3.3	%				718.9								718.9
Cost of revenues				101.1				(1.2	)				102.3					117.6				(2.8	)				120.4				-14.0	%				101.6				-0.5	%			-15.0	%			0.7	%				473.6			(2.8	)				476.4
Depreciation				4.0									4.0					4.3									4.3				-7.8	%				4.1				-1.1	%			-7.8	%			-1.1	%				17.7								17.7
Gross Profit				62.0				1.2					60.9					61.5				2.8					58.7				0.9	%				56.2				10.3	%			3.7	%			8.3	%				227.6			2.8					224.8
Sales and marketing expenses				14.2									14.2					13.2									13.2				7.4	%				12.0				18.0	%			7.4	%			18.0	%				52.6								52.6
General and administrative expenses				18.0									18.0					21.2									21.2				-15.2	%				15.9				13.5	%			-15.2	%			13.5	%				78.5								78.5
Provision for doubtful debts and advances				0.5									0.5					0.6									0.6				-17.7	%				(0.0	)			-4630.7	%			-17.7	%			-4630.7	%				1.6								1.6
Foreign exchange (gain) / loss, net				2.3									2.3					(1.2	)								(1.2	)			-292.5	%				4.1				-45.3	%			-292.5	%			-45.3	%				18.4								18.4
Operating income				27.1				1.2					25.9					27.6				2.8					24.9				-2.0	%				24.3				11.7	%			4.3	%			6.9	%				76.6			2.8					73.8
Other income / (expense), net				5.9				2.1					3.8					11.4				8.3					3.1				-48.1	%				11.2				-47.5	%			23.7	%			-65.9	%				30.0			7.0					23.0
Income before income taxes				33.0				3.2					29.8					39.0				11.0					28.0				-15.4	%				35.5				-7.0	%			6.4	%			-16.1	%				106.6			9.8					96.8
Income taxes				(2.7	)			(8.1	)				5.5					(4.1	)			(7.7	)				3.6				-34.4	%				6.8				-139.4	%			53.2	%			-20.0	%				5.2			(8.4	)				13.6
Net income/(loss)				35.7				11.4					24.3					43.1				18.7					24.4				-17.2	%				28.7				24.5	%			-0.4	%			-15.2	%				101.4			18.2					83.2
Earning per share
- Basic			$	0.28								$	0.19				$	0.32								$	0.18				-12.2	%			$	0.22				24.4	%			5.6	%			-15.2	%			$	0.75							$	0.61
- Diluted			$	0.27								$	0.19				$	0.32								$	0.18				-14.3	%			$	0.22				22.0	%			3.1	%			-16.9	%			$	0.75							$	0.61
Weighted average number of common shares used in computing earnings per share
- Basic				128,163,437									128,163,437					135,925,454									135,925,454									128,105,795																	135,590,677								135,590,677
- Diluted				131,290,834									131,290,834					135,925,454									135,925,454									128,704,643																	135,760,422								135,760,422
** Certain prior years' tax review is concluded by IRS and has resulted in net reversal leading to an increase in 2008 & Q3 2009 Gross Profit, Operating Income and Net Income.
1 – Due to write back of provision for payroll taxes of earlier years
2 – Impact of 1
3 – Due to write back of provision for interest/ penalties of earlier years
4 – Impact of 2 and 3
5 – Due to write back of provision for income tax of earlier years
6 – Impact of 4 and 5

Financial Statements Analysis:

Revenues

Revenues during the quarter were higher by 3.3% sequentially to US$ 167.2 million (Rs.8,040.2 million), from US$ 161.9 million (Rs.7,729.1 million) in the preceding quarter. Revenue growth was driven by volume growth of 3.0% (including higher number of days) and 0.3% due to currency impacts. Number of active clients were 283 at quarter end as compared to 294 in Q2 2009.

Gross Margin

Gross Margins were at 37.1% or US$ 62.0 million (Rs.2,983.5 million) against 34.7% or US$ 56.2 million (Rs.2,684.5 million) in the previous quarter. Gross Profit adjusted for Extra Ordinary Items is at US$ 60.9 million at 36.4% during the quarter. Improvement in Gross margin is primarily on account of higher utilization and impact of cost rationalization measures.

Overall non cash expense is US$ 5.4 million which includes depreciation and amortization expenses of US$ 4.5 million and stock option charge of US$ 0.9 million. Corresponding expense for Q2 was US$ 4.6 million for depreciation and amortization and US$ 0.2 million for stock option charge.

Selling General and Administrative Expenses (SGA Expenses)

Sales and marketing expenses during the quarter were at US$ 14.2 million (Rs.680.8 million) at 8.5% as compared to US$ 12.0 million (Rs.572.7 million) at 7.4% in the previous quarter.

G&A expenses during the quarter were at US$ 18.0 million (Rs.865.7 million) or 10.8% as compared to US$ 15.9 million (Rs.756.9 million) at 9.8% during the previous quarter. The sequential change is due to period cost change which has got normalized during this quarter.

Overall non cash expense is US$ 3.9 million which includes depreciation and amortization expenses at US$ 2.4 million for the quarter as against US$ 2.1 million in Q2 2009 and stock option charge at US$ 1.5 million for the quarter as against US$ 0.6 million in Q2.

Foreign exchange gain/loss

The revaluation and mark to market foreign exchange loss for the quarter were at US$ 2.3 million (Rs.108.6 million) as compared to foreign exchange loss of US$ 4.1 million (Rs.197.2 million) during the previous quarter.

The quarter end rate for debtor’s revaluation was Rs.48.10. Outstanding contracts at the end of Q3 2009 were about US$ 287 million which were contracted in the range of Rs.41.1 to Rs 51.2.

Operating Income

Operating Income including foreign exchange gain / loss was at US$ 27.1 million (Rs.1,303.1 million) or at 16.2% during the quarter. Operating income adjusted a for Extra Ordinary items is at US$ 25.9 million for the quarter or at 15.5% against US $24.3 million (Rs.1,158.3 million) or 15.0% during the previous quarter, reflecting an increase of 6.9% on QoQ and 4.3% on YoY basis.

Other Income

For Q3 CY2009, other income (including interest and dividend income net of interest expenses, profit/loss on sale of investments and other miscellaneous income) stood at 3.5% or US$ 5.9 million (Rs.283.4 million). Other Income adjusted for Extra ordinary items at US$ 3.8 million at 2.3% during the quarter lower than US$ 11.2 million during previous quarter due to cyclical change on account of fixed maturity investments.

Profit before Tax

Profit before tax for the quarter was at US$ 33.0 million (Rs.1,586.5 million) or at 19.7% during the quarter. Profit before Tax adjusted for Extra Ordinary items is at US$ 29.8 million for the quarter or at 17.8% against US $35.5 million (Rs.1,694.2 million) or 21.9% during the previous quarter, reflecting a sequential decrease of 16.1% and increase by 6.4% on YoY basis.

Income Taxes

Income tax for the quarter was at US$ (-) 2.7 million (Rs.129.2 million). Income Tax after adjustment of Extra Ordinary items is at US$ 5.5 million at an effective tax rate of 18.3%.

Net Income

Consequently, net income for the quarter at 21.3% was US$ 35.7 million (Rs.1,715.7 million) against US$ 28.7 million (Rs.1,368.5 million) at 17.7% in the previous quarter. Net income adjusted for Extra Ordinary items at US$ 24.3 million at 14.5% for the quarter.

Balance Sheet and Cash Flow changes

During the quarter, against net income of US$ 35.7 million (Rs.1,715.7 million), cash from operating activities was at US$ 34.4 million (Rs. 1,654.2 million) net of changes in current assets and liabilities of US $ (-) 7.9 million and non cash charges of US$ 6.6 million. These non cash charges comprise of depreciation and amortization including compensation cost of US$ 9.3 million and other charge of US$ (-) 2.7 million.

Net cash from investing activities was US$ 32.7 million (Rs.1,574.1 million) including capital expenditure of US$ 2.4 million (Rs.113.2 million),investment in investments of US$ 30.4 million (Rs.1,460.8 million).

Net cash outflow on financing activities was US$ 0.6 million (Rs.27.5 million) comprising payment of dividend on common shares of US$ 1.4 million (Rs.66.7 million) and US$ (-) 0.8 million (Rs.39.2 million) on other financing activities. Over all cash and cash equivalents (including short term investments) post revaluation, were at US$ 379.9 million (Rs.18,270.6 million), as compared to US$ 347.6 million (Rs.16,595.5 million) at the close of Q2 2009.

Receivables at the end of Q3 2009 were at US$105.6 million as compared to US$ 100.7 million at the end of Q2 2009. Number of days outstanding (Including Unbilled) for the current quarter were 75 days similar to the previous quarter.

Figures in Million INR except EPS and Share Data

D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME : BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
Particulars		Sep 30 2009				Sep 30 2008				Jun 30 2009				2008
Exchange rate$1 = INR		48.09				46.45				47.74				48.58
Revenue		8,040.2				8,522.5				7,729.1				34,923.4
Cost of revenues		4,863.8				5,463.5				4,851.1				23,007.5
Depreciation		192.8				202.0				193.5				858.2
Gross Profit		2,983.5				2,857.0				2,684.5				11,057.7
Sales and marketing expenses		680.8				612.0				572.7				2,553.2
General and administrative expenses		865.7				985.9				756.9				3,813.5
Provision for doubtful debts and advances		25.3				29.7				(0.6	)			79.0
Foreign exchange (gain) / loss, net		108.6				(54.5	)			197.2				891.9
Operating income		1,303.1				1,283.9				1,158.3				3,720.1
Other income / (expense), net		283.4				527.9				536.0				1,459.7
Income before income taxes		1,586.5				1,811.8				1,694.2				5,179.8
Income taxes		(129.2	)			(190.1	)			325.8				252.8
Net income/(loss)		1,715.7				2,001.9				1,368.5				4,927.0
Earning per share
- Basic		13.39				14.73				10.68				36.44
- Diluted		13.07				14.73				10.63				36.44
Weighted average number of common shares used in computing earnings per share
- Basic		128,163,437				135,925,454				128,105,795				135,590,677
- Diluted		131,290,834				135,925,454				128,704,643				135,760,422

Important Notes to this release:

- Fiscal Year

Patni follows a January – December fiscal year. The current review covers the financial and operating performance of the Company for the third quarter ended September 30, 2009

- U.S. GAAP

A Consolidated Statement of Income in US GAAP is available on page 3 of the Fact Sheet attached to this release

- Percentage analysis

Any percentage amounts, as set forth in this release, unless otherwise indicated, have been calculated on the basis of the U.S. Dollar amounts derived from our consolidated financial statements prepared in accordance with U.S. GAAP, and not on the basis of any translated Rupee amount. Calculation of percentage amounts on the basis of Rupee amounts may lead to results that are different, in a material way, from those calculated as per U.S. Dollar amounts.

- Convenience translation

A Consolidated Statement of Income as per Convenience Translation prepared in accordance with US GAAP is available on page 6 of the Fact Sheet attached to this release. We have translated the financial data derived from our consolidated financial statements prepared in accordance with U.S. GAAP for each period at the noon buying rate in the City of New York on the last business day of such period for cable transfers in Rupees as certified for customs purposes by the Federal Reserve Bank of New York. The translations should not be considered as a representation that such US Dollar amounts have been, could have been or could be converted into Rupees at any particular rate, the rate stated elsewhere in this document, or at all. Investors are cautioned to not rely on such translated amounts.

NOTES:
● Fiscal Year
Patni follows a January – December fiscal year. The current review covers the financial and operating performance of the Company for the quarter ended September 30, 2009.
● U.S. GAAP
All figures in this release pertain to accounts presented as per U.S. GAAP unless stated otherwise.
● Percentage analysis
Any percentage amounts, as set forth in this release, unless otherwise indicated, have been calculated on the basis of the U.S. Dollar amounts derived from our consolidated financial statements prepared in accordance with U.S. GAAP, and not on the basis of any translated Rupee amount. Calculation of percentage amounts on the basis of Rupee amounts may lead to results that are different, in a material way, from those calculated as per U.S. Dollar amounts.
● Convenience translation
We have translated the financial data derived from our consolidated financial statements prepared in accordance with U.S. GAAP for each period at the noon buying rate in the City of New York on the last business day of such period for cable transfers in Rupees as certified for customs purposes by the Federal Reserve Bank of New York. The translations should not be considered as a representation that such US Dollar amounts have been, could have been or could be converted into Rupees at any particular rate, the rate stated elsewhere, or at all. Investors are cautioned to not rely on such translated amounts.
● Reclassification
Certain reclassifications have been made in the financial statements of prior years to conform to classifications used in the current year.
	Fact Sheet Summary Index
Ref Number	Description				Page No.
A	US GAAP Financials
A1	Consolidated Statement of Income				3
A2	Consolidated Balance Sheet				4
A3	Consolidated Cash Flow Statement				4
B	Indian GAAP Financials
B1	Conslidated Statement of Income				4
B2	Consolidated Balance Sheet				5
B3	Consolidated Cash Flow Statement				5
C	Reconcilation between US GAAP and Indian GAAP Income Statement				5
D	US GAAP Financials Based on Convenience Translation
D1	Consolidated Statement of Income				6
D2	Consolidated Balance Sheet				6
D3	Consolidated Cash Flow Statement				6
E	Operational and Analytical Information
E1	Revenue Analysis				7
E2	Revenue-Client Metrics				7
E3	Revenue Mix and Utilization				7
E4	Employee Metrics				8
E5	Infrastructure				8
E6	Currency Rates				8

A1) CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ ‘000)
For the quarter / period ended
Particulars		Sep 30 2009 (Unaudited)					Extra Ordinary Items**				NON GAAP Sept 2009 (Excluding Extra Ordinary Items)			Sep 30 2008 (Unaudited)					Extra Ordinary Items**				NON GAAP Sept 2008 (Excluding Extra Ordinary Items)					YoY change %				Jun 30 2009 (Unaudited)					QoQ change %				Non GAAP YoY change %				Non GAAP QoQ change %					2008 (Audited)				Extra Ordinary Items**				NON GAAP 2008 (Excluding Extra Ordinary Items)
Revenue			167,190									167,190			183,477									183,477				-8.9	%				161,899				3.3	%			-8.9	%			3.3	%					718,884								718,884
Cost of revenues			101,140				(1,158	)				102,298			117,621				(2,770	)				120,391				-14.0	%				101,615				-0.5	%			-15.0	%			0.7	%					473,600			(2,770	)				476,370
Depreciation			4,010									4,010			4,349									4,349				-7.8	%				4,053				-1.1	%			-7.8	%			-1.1	%					17,666								17,666
Gross Profit			62,040				1,158					60,882			61,507				2,770					58,737				0.9	%				56,231				10.3	%			3.7	%			8.3	%					227,618			2,770					224,848
Sales and marketing expenses			14,157									14,157			13,176									13,176				7.4	%				11,995				18.0	%			7.4	%			18.0	%					52,557								52,557
General and administrative expenses			18,002									18,002			21,225									21,225				-15.2	%				15,855				13.5	%			-15.2	%			13.5	%					78,499								78,499
Provision for doubtful debts and advances			526									526			639									639				-17.7	%				(12	)			-4630.7	%			-17.7	%			-4630.7	%					1,626								1,626
Foreign exchange (gain) / loss, net			2,259									2,259			(1,173	)								(1,173	)			-292.5	%				4,130				-45.3	%			-292.5	%			-45.3	%					18,359								18,359
Operating income			27,097				1,158					25,939			27,640				2,770					24,870				-2.0	%				24,262				11.7	%			4.3	%			6.9	%					76,577			2,770					73,808
Other income / (expense), net			5,894				2,063					3,831			11,362				8,264					3,098				-48.1	%				11,227				-47.5	%			23.7	%			-65.9	%					30,047			7,030					23,018
Income before income taxes			32,990				3,221					29,770			39,002				11,034					27,968				-15.4	%				35,489				-7.0	%			6.4	%			-16.1	%					106,625			9,799					96,826
Income taxes			(2,687	)			(8,144	)				5,456			(4,093	)			(7,654	)				3,561				-34.4	%				6,824				-139.4	%			53.2	%			-20.0	%					5,203			(8,382	)				13,586
Net income/(loss)			35,678				11,364					24,313			43,095				18,688					24,407				-17.2	%				28,665				24.5	%			-0.4	%			-15.2	%					101,421			18,181					83,240
Earning per share
- Basic		$	0.28								$	0.19		$	0.32								$	0.18				-12.2	%			$	0.22				24.4	%			5.6	%			-15.2	%				$	0.75							$	0.61
- Diluted		$	0.27								$	0.19		$	0.32								$	0.18				-14.3	%			$	0.22				22.0	%			3.1	%			-16.9	%				$	0.75							$	0.61
Weighted average number of common shares used in computing earnings per share
- Basic			128,163,437									128,163,437			135,925,454									135,925,454									128,105,795																		135,590,677								135,590,677
- Diluted			131,290,834									131,290,834			135,925,454									135,925,454									128,704,643																		135,760,422								135,760,422
** Certain prior years' tax review is concluded by IRS and has resulted in net reversal leading to an increase in 2008 & Q3 2009 Gross Profit, Operating Income and Net Income.
1 – Due to write back of provision for payroll taxes of earlier years
2 – Impact of 1
3 – Due to write back of provision for interest/ penalties of earlier years
4 – Impact of 2 and 3
5 – Due to write back of provision for income tax of earlier years
6 – Impact of 4 and 5

A2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (US$ ‘000)
Particulars									As on 30-Sep-09		As on 30-Jun-09		As on 30-Sep-08
Assets
Total current assets									546,229		516,292		475,252
Goodwill									65,784		65,966		67,125
Intangible assets, net									23,957		25,043		28,383
Property, plant, and equipment, net									146,324		151,006		157,483
Other assets									52,807		50,081		38,055
Total assets									835,101		808,389		766,298
Liabilities
Total current liabilities									133,234		134,731		150,773
Capital lease obligations excluding current installments									113		133		237
Other liabilities									27,865		39,586		29,054
Total liabilities									161,211		174,450		180,064
Total shareholders’ equity									673,889		633,939		586,234
Total liabilities & shareholders’ equity									835,101		808,389		766,298
A3) CONSOLIDATED CASH FLOW STATEMENT USGAAP (US$ ‘000)
Particulars							Sep 30 2009 (Unaudited)		Jun 30 2009 (Unaudited)		Sep 30 2008 (Unaudited)		2008 (Audited)
Net cash provided by operating activities							34,398		43,799		27,147		149,343
Net cash used in investing activities							(32,732	)	(29,857	)	22,437		(35,532	)
Capital expenditure, net							(2,355	)	(6,686	)	(6,026	)	(39,521	)
Investment in securities, net							(30,377	)	(23,171	)	28,463		3,989
Net cash provided / (used) in financing activities							(571	)	(7,927	)	(54,837	)	(64,590	)
Others							(43	)	(63	)	(69	)	(293	)
Common shares issued / (Buy Back)							860		5		(43,327	)	(52,855	)
Dividend on common shares							(1,387	)	(7,869	)	(11,441	)	(11,441	)
Net increase / (decrease) in cash and equivalents							1,095		6,015		(5,253	)	49,222
Effect of exchange rate changes on cash and equivalents							(535	)	4,446		(11,122	)	(21,709	)
Cash and equivalents at the beginning of the period							57,087		46,625		55,111		32,626
Cash and equivalents at the end of the period							57,647		57,087		38,736		60,138
B1) AUDITED CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS. ‘000)
For the quarter / period ended
Particulars			Sep 30 2009		Sep 30 2008		YoY Change %		Jun 30 2009		QoQ Change %		2008
Sales and service income			8,017,247		7,996,102		0.3	%	7,796,456		2.8	%	31,172,682
Other income			320,406		471,517		-32.0	%	577,811		-44.5	%	1,288,421
Total income			8,337,653		8,467,619		-1.5	%	8,374,267		-0.4	%	32,461,103
Staff costs			4,734,238		4,626,485		2.3	%	4,440,280		6.6	%	18,328,658
Selling, general and administration expenses			1,993,299		2,085,785		-4.4	%	2,277,380		-12.5	%	9,268,979
Interest			15,531		26,806		-42.1	%	19,697		-21.2	%	78,959
Total expenditure			6,743,068		6,739,076		0.1	%	6,737,357		0.1	%	27,676,596
Net profit before tax and adjustments			1,594,585		1,728,543		-7.7	%	1,636,910		-2.6	%	4,784,506
Provision for taxation			(91,181	)	(73,738	)	23.7	%	277,232		-132.9	%	404,366
Profit/(loss) for the period after taxation			1,685,766		1,802,281		-6.5	%	1,359,678		24.0	%	4,380,140
Profit and loss account, brought forward			20,226,909		16,553,144		22.2	%	18,867,237		7.2	%	14,560,885
Amount available for appropriation			21,912,675		18,355,425		19.4	%	20,226,915		8.3	%	18,941,025
Proposed dividend on equity shares			-		-		0.0	%	-		0.0	%	384,473
Dividend on equity shares			-		-		0.0	%	5		0.0	%	-
Dividend tax			-		-		0.0	%	1		0.0	%	65,341
Transfer to general reserve			-		-		0.0	%	-		0.0	%	389,154
Profit and loss account, carried forward			21,912,675		18,355,425		19.4	%	20,226,909		8.3	%	18,102,057
Earning per share (Rs. per equity share of Rs. 2 each)
- Basic			13.15		13.26		-0.8	%	10.61		23.9	%	32.30
- Diluted			12.83		13.24		-3.1	%	10.49		22.3	%	32.25
Weighted average number of common shares used in computing earnings per share
- Basic			128,163,437		135,925,454				128,105,795				135,590,677
- Diluted			131,413,935		136,108,038				129,577,769				135,815,016
B2) AUDITED CONSOLIDATED BALANCE SHEET - INDIAN GAAP (RS. ‘000)
Particulars									As on 30-Sep-09		As on 30-Jun-09		As on 30-Sep-08
Assets
Current assets, loans and advances									11,626,250		11,439,194		11,556,213
Goodwill									4,881,590		4,875,305		4,825,306
Fixed assets(Net of Depreciation)									8,448,428		8,666,260		9,028,214
Investments									15,544,306		13,926,908		11,113,595
Deferred tax asset, net									917,102		1,008,307		634,982
Total assets									41,417,676		39,915,974		37,158,310
Liabilities
Current liabilities and provisions									7,674,864		8,207,205		8,197,901
Secured loans									11,878		13,122		20,771
Deferred tax liability, net									167,441		154,303		129,265
Total liabilities									7,854,183		8,374,630		8,347,937
Total shareholders’ equity									33,563,493		31,541,344		28,810,373
Total liabilities & shareholders’ equity									41,417,676		39,915,974		37,158,310
B3) AUDITED CONSOLIDATED CASH FLOW STATEMENT - INDIAN GAAP (RS ‘000)
Particulars							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Cash flows from / (used in) operating activities (A)							1,491,271		2,048,669		903,983		5,814,039
Cash flows used in investing activities (B)							(1,448,150	)	(1,332,200	)	1,125,514		(1,002,523	)
Cash flows from / (used in) from financing activities (C)							(10,186	)	(383,269	)	(2,466,025	)	(2,859,934	)
Effect of changes in exchange rates (D)							(330	)	43,095		(115,258	)	(305,689	)
Net decrease in cash and cash equivalents during the period (A+B+C+D)							32,605		376,295		(551,786	)	1,645,892
Cash and cash equivalents at the beginning of the period							2,740,207		2,363,912		2,370,894		1,285,857
Cash and cash equivalents at the end of the period							2,772,812		2,740,207		1,819,108		2,931,750
C) Reconcilation of Income as per Indian GAAP and US GAAP(RS. ‘000)
Particulars							Sep 30 2009		Sep 30 2008		Jun 30 2009		2008
Consolidated net income as per Indian GAAP							1,685,800		1,802,281		1,359,678		4,380,116
Income taxes							54,100		45,517		33,244		60,298
Foreign currency differences							18,100		8,040		5,876		73,078
Employee retirement benefits							42,700		(8,896	)	(34,239	)	17,937
ESOP related Compensation Cost							(33,600	)	(42,729	)	(31,040	)	(165,832	)
Impairment of Intangible							-				139,568
Amortisation of Intangibles , arising on Business acquisition							(26,100	)	(17,614	)	(19,667	)	(71,055	)
Others							(5,500	)	(3,463	)	5,436		(2,720	)
Total							49,700		(19,145	)	99,178		(88,293	)
Consolidated net income as per US GAAP							1,735,500		1,783,136		1,458,856		4,291,822
D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME (RS. ‘000): BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
Particulars							Sep 30 2009		Sep 30 2008		Jun 30 2009		2008
Exchange rate$1 = INR							48.09		46.45		47.74		48.58
Revenues							8,040,167		8,522,500		7,729,054		34,923,390
Cost of revenues							4,863,834		5,463,483		4,851,101		23,007,511
Depreciation							192,834		202,032		193,494		858,206
Gross Profit							2,983,500		2,856,985		2,684,459		11,057,673
Sales and marketing expenses							680,788		612,007		572,660		2,553,245
General and administrative expenses							865,707		985,903		756,928		3,813,465
Provision for doubtful debts and advances							25,296		29,682		(554	)	78,979
Foreign exchange (gain ) / loss, net							108,630		(54,500	)	197,170		891,859
Operating income							1,303,078		1,283,892		1,158,256		3,720,124
Other income / (expense), net							283,431		527,894		535,991		1,459,693
Income before income taxes							1,586,508		1,811,787		1,694,246		5,179,816
Income taxes							(129,226	)	(190,136	)	325,765		252,781
Net income/(loss)							1,715,734		2,001,923		1,368,481		4,927,035
Earning per share
- Basic							13.39		14.73		10.68		36.44
- Diluted							13.07		14.73		10.63		36.44
Weighted average number of common shares used in computing earnings per share
- Basic							128,163,437		135,925,454		128,105,795		135,590,677
- Diluted							131,290,834		135,925,454		128,704,643		135,760,422
D2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (RS. ‘000): BASED ON CONVENIENCE TRANSLATION
Particulars									As on 30-Sep-09		As on 30-Jun-09		As on 30-Sep-08
Exchange rate$1 = INR									48.09		47.74		46.45
Assets
Total current assets									26,268,162		24,647,786		22,075,459
Goodwill									3,163,534		3,149,239		3,117,957
Intangible assets, net									1,152,091		1,195,538		1,318,393
Property, plant, and equipment, net									7,036,709		7,209,016		7,315,093
Other assets									2,539,488		2,390,889		1,767,662
Total assets									40,159,985		38,592,467		35,594,564
Liabilities
Total current liabilities									6,407,200		6,432,046		7,003,402
Capital lease obligations excl. installments									5,452		6,366		11,020
Other liabilities									1,340,004		1,889,824		1,349,563
Total liabilities									7,752,656		8,328,236		8,363,985
Total shareholders’ equity									32,407,329		30,264,231		27,230,579
Total liabilities & shareholders’ equity									40,159,985		38,592,467		35,594,564
D3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (RS ‘000): BASED ON CONVENIENCE TRANSLATION
Particulars							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Exchange rate $1 = INR							48.09		47.74		46.45		48.58
Net cash provided by operating activities							1,654,179		2,090,951		1,260,973		7,255,086
Net cash used in investing activities							(1,574,069	)	(1,425,354	)	1,042,203		(1,726,132	)
Capital expenditure, net							(113,245	)	(319,179	)	(279,897	)	(1,919,918	)
Investment in securities, net							(1,460,824	)	(1,106,174	)	1,322,100		193,786
Investment in subsidiary, net of cash acquired							-		-		-		-
Net cash provided / (used) in financing activities							(27,466	)	(378,424	)	(2,547,184	)	(3,137,759	)
Others							(2,091	)	(3,020	)	(3,225	)	(14,254	)
Common shares issued, net of expenses							41,338		256		(2,012,541	)	(2,567,709	)
Dividend on common shares							(66,713	)	(375,660	)	(531,418	)	(555,796	)
Net increase / (decrease) in cash and equivalents							52,645		287,173		(244,008	)	2,391,195
Effect of exchange rate changes on cash and equivalents							(25,713	)	212,249		(516,610	)	(1,054,639	)
Cash and equivalents at the beginning of the period							2,745,303		2,225,901		2,559,912		1,584,970
Cash and equivalents at the end of the period							2,772,235		2,725,323		1,799,294		2,921,526
E1 ) REVENUE ANALYSIS
Revenue By Geographical Segments							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Americas							80.8	%	80.0	%	76.7	%	77.0	%
EMEA							13.5	%	14.2	%	17.5	%	17.4	%
APAC							5.7	%	5.8	%	5.8	%	5.6	%
Total							100.0	%	100.0	%	100.0	%	100.0	%
Revenue by Industry Verticals							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Insurance							31.2	%	29.7	%	25.1	%	24.7	%
Manufacturing, Retail and Distribution							28.4	%	27.7	%	29.5	%	28.9	%
Financial Services							12.3	%	13.8	%	12.5	%	12.8	%
Communications,Media & Utilities							13.5	%	13.7	%	17.7	%	17.9	%
Product Engineering Services							14.6	%	15.1	%	15.2	%	15.8	%
Total							100.0	%	100.0	%	100.0	%	100.0	%
Revenue by Service Offerings							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Application Development & Maintenance							65.0	%	64.9	%	64.2	%	63.8	%
Package software implementation							12.9	%	13.8	%	15.0	%	14.5	%
Product Engineering Services							11.1	%	11.3	%	10.8	%	11.2	%
Infrastructure Management Services							6.0	%	4.7	%	4.7	%	4.9	%
Business Process Outsourcing							5.0	%	5.3	%	5.2	%	5.6	%
Total							100.0	%	100.0	%	100.0	%	100.0	%
Revenue by Project Type							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Time and Material							57.6	%	60.2	%	63.2	%	64.0	%
Fixed Price (including Fixed Price SLA)							42.4	%	39.8	%	36.8	%	36.0	%
Total							100.0	%	100.0	%	100.0	%	100.0	%
E2) CLIENT- REVENUE METRICS
Particulars							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Top client							11.9	%	12.3	%	10.5	%	10.7	%
Top 5 Clients							38.3	%	37.2	%	32.9	%	32.7	%
Top 10 Clients							51.4	%	50.1	%	45.3	%	45.6	%
Client data
No of $1 million clients							92		90		91		92
No of $5 million clients							27		26		30		30
No of $10 million clients							16		17		20		19
No of $50 million clients							2		2		2		2
No of new clients							7		7		27		100
No. of active Clients							283		294		332		331
% of Repeat Business							93.6	%	94.5	%	94.3	%	93.0	%
E3) REVENUE MIX AND UTILIZATION
							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Efforts
Onsite							26.8	%	27.6	%	28.2	%	28.7	%
Offshore							73.2	%	72.4	%	71.8	%	71.3	%
Revenue
Onsite							55.1	%	55.5	%	58.0	%	59.3	%
Offshore							44.9	%	44.5	%	42.0	%	40.7	%
Utilization							77.0	%	74.4	%	75.0	%	72.1	%
E4) EMPLOYEE METRICS
							Sep 30 2009		Jun 30 2009		Sep 30 2008		2008
Total Employees							13,607		13,780		14,701		14,894
Offshore							10,843		11,022		11,662		11,928
Onsite							2,764		2,758		3,039		2,966
Total							13,607		13,780		14,701		14,894
Sales & Support Staff							1,520		1,495		1,511		1,563
Net Additions							(173	)	(760	)	(343	)	(51	)
Attrition (LTM) excluding BPO							11.3	%	13.2	%	20.2	%	18.6	%
E5) FACILITIES - INDIA INFRASTRUCTURE (as on Sep 30, 2009)
							Operational**				Under Construction/Furnishing
Location							Built Up Area (Sq ft)		No. of Seats		Built Up Area (Sq ft)		No. of Seats
Mumbai							183,648		1,751		-		-
Navi Mumbai							267,411		3,209		-		-
Airoli							462,845		4,380		-		-
Pune							306,020		3,275		-		-
Gandhinagar							37,014		351		-		-
Noida							501,100		3,756		-		-
Hyderabad							97,497		757		-		-
Bangalore							114,330		1,249		-		-
Chennai							148,000		1,189		-		-
							2,117,865		19,917		-		-
** Owned plus leased
E6) RUPEE - CURRENCY RATES AGAINST US DOLLAR
									Sep 30 2009		Sep 30 2008		Jun 30 2009
Rupee
Period end rate									48.10		46.95		47.90
Period average rate									48.38		44.37		48.74
Other Currencies (Average Rate)
AUD									0.83		0.89		0.76
EURO									1.43		1.51		1.36
GBP									1.64		1.90		1.55
YEN									0.01		0.06		0.01

About Patni Computer Systems Ltd:

Patni Computer Systems Limited (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI) is a global provider of IT Services and business solutions, servicing Global 2000 clients. Patni services its clients through its industry-focused practices, including banking, financial services (BFS) and insurance (I); manufacturing, retail and distribution (MRD); life sciences; communications, media and utilities (CMU), and its technology-focused practices.

With an employee strength of 13,800; multiple global delivery centers spread across 12 cities worldwide; 27 international offices across the Americas, Europe and Asia-Pacific; Patni has registered revenues of US$ 719 million for the year 2008.

Patni’s service offerings include application development and maintenance, enterprise application solutions, business and technology consulting, product engineering services, infrastructure management services, customer interaction services & business process outsourcing, quality assurance and engineering services.

Committed to quality, Patni adds value to its clients’ businesses through well-established and structured methodologies, tools and techniques. Patni is an ISO 9001: 2000 certified and SEI-CMMI Level 5 (V 1.2) organization, assessed enterprise wide at P-CMM Level 3. In keeping with its focus on continuous process improvements, Patni adopts Six Sigma practices as an integral part of its quality and process frameworks.

Patni leverages its vast experience spanning three decades; deep domain expertise; full-spectrum services; and suites of IP-led solutions, methodologies and frameworks; in being an effective business transformation partner to its clients.

For more information on Patni, visit www.patni.com

IMPORTANT NOTE:

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, liability for damages on our service contracts, the success of the companies in which Patni has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

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