Patni Q3, 2006 Net Income up 37% at $22.3 Million (Rs 1,024 Million), and Revenues up 28% at $151.7 Million (Rs 6,971 Million), YoY
Friday October 27, 12:30 am ET
MUMBAI, India & CAMBRIDGE, Mass.--(BUSINESS WIRE)--Patni Computer Systems Limited (Patni) today announced its financial results for the third quarter ended 30 September 2006.
Performance Highlights
Important note:
As stated in our Q2 2006 release, prior years' tax review by the IRS and a review by the Department of Labor of Patni's US operations had resulted in additional provisions which led to an increase in gross profit and operating income by approximately US$ 7.0 million and decrease in net income by US$ 19.9 million for Q2 2006. Variations in Patni's Q2 2006 financial performance as a result of these reviews had been referred to as 'additional provisions' in the said press release. Financial Performance for Q2 2006 excluding these additional provisions has been considered for comparative performance review with Q3 2006 in this release.
Performance Highlights for the quarter ended Sept 30th 2006
Revenues for the quarter at US$ 151.7 million (Rs 6,971 million)
up 6.1% sequentially from US$ 143.0 million (Rs 6,561 million) in quarter ended June 30, 2006
28.3% higher compared to US$ 118.3 million (Rs 5,197 million) in quarter ended Sep 30, 2005
Operating Income at US$ 25.1 Million (Rs 1,153 million) on the back of improved operating efficiencies
up 46.4% sequentially from US$ 17.1 million (Rs 786 million) in quarter ended June 30, 2006
40.8% higher compared to US$ 17.8 million (Rs 783 million) in quarter ended Sep 30, 2005
Net Income at US$ 22.3 million (Rs 1,024 million)
up 33.4% sequentially US$ 16.7 million (Rs 766 million) in quarter ended June 30, 2006
37.2% higher compared to US$ 16.2 million (Rs 714 million) in quarter ended Sep 30, 2005
EPS for the quarter at US$ 0.16 per share, (Rs 7.42 per share); US$ 0.32 per ADS
Top Customer contribution towards revenue decreased to 14.1% during the quarter from 14.5% in Q2 2006. Revenue concentration of Top 10 clients also reduced to 51.6% from 54.1% in the previous quarter.
Number of active clients was 235 at quarter end as compared to 220 in Q2 2006. Patni acquired 27 new clients during the quarter.
Key Corporate Developments in Q3 2006:
Patni ranked highest in Forrester survey - Customer Satisfaction Survey among Indian Offshore Supply Chain Solution providers.
Patni and Savvion entered strategic alliance - Offering industry-leading Business Process Management solutions.
Patni received CIO 100 award at CIO Symposium - Acknowledged as one of 'The Giant 100' companies at the first CIO 100 awards in India.
PatniConnect - Annual customer event concluded successfully.
Future Outlook:
Q4 2006 revenues are expected to be US$ 152 million and net income is expected to be in the range of US$ 20.4 - $20.6 million excluding foreign exchange gain/loss and taking the operations at a constant dollar value of Rs 45.50 per US$.
Management comments
Commenting on the Q3 2006 performance, Mr. Narendra K Patni, Chairman and CEO, Patni Computer Systems Ltd., said, "I am delighted to report a strong increase in revenue and net income in the quarter under review which is a result of new client acquisitions and efficient management of our cost structure. We are witnessing healthy demand escalation across all our verticals and service lines. To ensure adequate preparedness to meet this demand, we are expanding our facilities. Further, in continuation of our drive towards profitable growth we have reorganized our management team, as a result of which I expect greater focus and accountability thrust across the organisation.
Over the medium to long term, I remain confident of our ability to capture the growth opportunities and translate them into ongoing value enhancement for all our stakeholders."
Commenting on the performance, Mr. Mrinal Sattawala, Chief Operating Officer, Patni, said, "This quarter saw us delivering good operating efficiencies. We improved our resource utilization for both offshore and onsite projects in addition to improvements in other operating parameters. During the period under review we have added 27 new clients, bringing our tally of active clients to 235. Additionally, in line with our overall business strategy, we maintained our thrust on diversifying our revenue stream which is reflected in reduced reliance on our Top 5 and Top 10 clients. These developments strengthens our confidence in our ability to maintain our strong & profitable growth momentum."
Speaking on the occasion, Mr. Surjeet Singh, Chief Financial Officer, Patni, added, "In Q3 2006, we executed well on our operating efficiency improvement plan. A reduction in G&A, improvement in operating parameters including utilization coupled with revenue growth has led to sustainable margin expansion in the quarter. We continue to focus on managing our cost base more efficiently and driving profitable growth through our investments in service capabilities."
Corporate developments in Q3 2006
Patni Ranked Highest among Indian Offshore Supply Chain Solution Providers in Customer Satisfaction
Patni received the highest customer satisfaction rating among Indian offshore supply chain solution providers in a Forrester survey. The survey, "Ranking Supply Chain Management Tools and Services," conducted by Forrester Research, Inc., in June 2006, queried 167 supply chain decision makers in North America. It examined their satisfaction with supply chain software and service providers, as well as their plans for additional investments.
Patni and Savvion enter into a strategic alliance
Patni has formed a strategic alliance with Savvion, the industry's leading business process management (BPM) company. Patni will leverage its deep domain expertise and knowledge of industry best practices to help people within organizations to collaborate, control, and improve business processes to drive business success with Savvion BusinessManager.
Patni received award at CIO 100
Patni was recognized as one of 'The Giant 100' companies at the CIO 100 awards in India for demonstrating excellence in deploying technology solutions to deliver optimum business value. Patni received the awards at the CIO Symposium and Award ceremony in Mumbai. The award was presented to Patni for its technology vision in building a Corporate Performance Management System (CPMS).
Patni Connect
Patni successfully concluded its third annual customer forum - 'Patni Connect 2006' - in the U.S. The Patni leadership team exchanged views with IT and business leaders representing their customer organizations, other pre-eminent industry analysts and professionals.
Management Discussion & Analysis of Performance
(Figures in Million US$ except EPS and Share Data)
CONSOLIDATED STATEMENT OF INCOME
For the quarter / period ended
----------------------------------------------------------------------
Particulars Q3 2006 Q3 2005 YoY Q2 2006
Change
----------------------------------------------------------------------
Revenues 151.7 118.3 28.3% 143.0
----------------------------------------------------------------------
Cost of revenues 94.5 74.8 26.5% 86.2
----------------------------------------------------------------------
Depreciation 3.1 2.8 11.5% 3.2
----------------------------------------------------------------------
Gross Profit 54.1 40.8 32.7% 53.7
----------------------------------------------------------------------
Sales and marketing
expenses 11.0 9.6 15.3% 11.0
----------------------------------------------------------------------
General and administrative
expenses 16.2 13.7 18.0% 18.4
----------------------------------------------------------------------
----------------------------------------------------------------------
Provision for doubtful debt
and advances 0.5 0.2 - 0.2
----------------------------------------------------------------------
Foreign exchange (gain) /
loss, net 1.3 -0.5 - -0.1
----------------------------------------------------------------------
Operating income 25.1 17.8 40.8% 24.2
----------------------------------------------------------------------
----------------------------------------------------------------------
Other income / (expenses),
net 2.9 1.6 88.4% 4.1
----------------------------------------------------------------------
Income before income taxes 28.0 19.4 44.7% 28.3
----------------------------------------------------------------------
Income taxes 5.8 3.1 83.3% 31.5
----------------------------------------------------------------------
Net income 22.3 16.2 37.2% -3.2
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic 0.16 0.13 -0.02
----------------------------------------------------------------------
- Diluted 0.16 0.13 -0.02
----------------------------------------------------------------------
Weighted average number of
common shares used in
computing earnings per
----------------------------------------------------------------------
- Basic 137,940,096 125,116,730 137,889,376
----------------------------------------------------------------------
- Diluted 138,861,054 126,835,729 137,889,376
----------------------------------------------------------------------
Additional Q2 2006 QoQ Change
Particulars QoQ provisions (Excluding Excluding
Change in Q2 Additional Additional
2006(a) Provisions) Provisions
----------------------------------------------------------------------
Revenues 6.1% - 143.0 6.1%
----------------------------------------------------------------------
Cost of revenues 9.7% -7.0 (1) 93.2 1.4%
----------------------------------------------------------------------
Depreciation -3.1% - 3.2 -3.1%
----------------------------------------------------------------------
Gross Profit 0.8% 7.0(1) 46.6 16.1%
----------------------------------------------------------------------
Sales and marketing expenses 0.1% - 11.0 0.1%
----------------------------------------------------------------------
General and administrative
expenses -12.0% - 18.4 -12.0%
----------------------------------------------------------------------
----------------------------------------------------------------------
Provision for doubtful debt
and advances - - 0.2 -
----------------------------------------------------------------------
Foreign exchange (gain) /
loss, net - - -0.1 -
----------------------------------------------------------------------
Operating income 3.6% 7.0 (1) 17.1 46.4%
----------------------------------------------------------------------
----------------------------------------------------------------------
Other income / (expenses),
net -27.7% 0.2 4.0 -25.8%
----------------------------------------------------------------------
Income before income taxes -0.9% 7.2( 2) 21.1 32.8%
----------------------------------------------------------------------
Income taxes -81.7% 27.1 4.4 30.5%
----------------------------------------------------------------------
Net income - -19.9 (3) 16.7 33.4%
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic
----------------------------------------------------------------------
- Diluted
----------------------------------------------------------------------
Weighted average number of
common shares used in
computing earnings per
----------------------------------------------------------------------
- Basic
----------------------------------------------------------------------
- Diluted
----------------------------------------------------------------------
2 shares = 1ADS
(a) Prior years' tax review by IRS and the Department of Labor Review
by Patni's US Operations has resulted in the net reversals of
additional provisions leading to an increase in Q2 2006 Gross Profit
and Operating Income and a decrease in Q2 2006 Net Income.
1 - due to reversal of payroll taxes for earlier years, net of accrual
from DOL review
2 - impact of 1, net of write-back of interest/penalty for earlier
years
3 - impact of re-assessed corporate taxes for earlier years, net of 2
Revenues
Revenues during the quarter grew sequentially by 6.1% to US$ 151.7 million (Rs 6,971 million) from US$ 143.0 million (Rs 6,561 million) in Q2 2006. Revenue improvement was driven by volume growth of 5.9% and price increases of about 0.2%. On YoY basis the revenues grew by 28.3% as compared to Q3 2005 revenues of US$ 118.3 m (Rs 5,197 million).
Gross profit
Gross profit was higher by 16.1% at US$ 54.0 million (Rs 2,485 million) when compared to Q2 2006 gross profit (adjusted for a net reversal of additional provisions) of US$ 46.6 million (Rs 2,138 million) in the previous sequential quarter. Gross margin improved from 32.6% to 35.7% as a result of the following factors:
Improvement in Utilization, resulting in gross margin improvement of 1%, US$ 1.5 million.
Reduction in immigration/visa costs, resulting in gross margins improvement of 0.9%, US$ 1.3 million.
Other operating efficiencies, resulting in gross margin improvement of 1.3%, US$ 1.9 million.
Gross profit grew by 32.7% when compared to the corresponding quarter last year.
Selling and Marketing Expenses
Sales and marketing expenses remained steady at US$ 11.0 million (Rs 507 million) in Q3 2006 in comparison to Q2 2006, the overall expense as percentage to sales reduced from 7.7% in Q2 2006 to 7.3% due to increased absorption.
G&A expenses
Continued focus on G&A cost optimization led to a reduction in overall spend by US$ 2.2 million from US$ 18.4 million (Rs 843 million) in Q2 2006 to US$ 16.2 million (Rs 744 million) in Q3 2006. Overall spend as percentage of sales reduced from 12.9% in Q2 2006 to 10.7% in Q3 2006. This was achieved by the following:
Non recurring expenses of US$ 1.3 million incurred in Q2 2006, saving of 0.9 % on sales
Structural reduction of US$ 0.9 million, savings of 0.6% on sales
Higher absorption on increased revenues of 0.6% on sales
Provision for doubtful debts
For Q3 2006 Provision for doubtful debts increased to US$ 0.5 million (Rs 24 million) from US$ 0.2 million (Rs 7 million) in the previous quarter and US$ 0.2 million (Rs 9 million) in Q3 2005.
Foreign exchange gain/loss
Mark to market impact of forex contracts taken earlier and revaluation of debtors at the quarter end rate resulted in Foreign exchange loss of US$ 1.3 million (Rs 58 million) for the quarter as compared to a foreign exchange gain of US$ 0.1 million (Rs 5 million) in Q2 2006. In the corresponding quarter last year, the foreign exchange gain stood at US$ 0.5 million (Rs 24 million).
Operating income
On account of improved gross margins, reduction in G&A costs and net of changes in forex gain/loss and reserves for doubtful debts, Q3 2006 Operating income increased by 46.4% to US$ 25.1 million (Rs 1,153 million) as compared to operating income of US$ 17.1 million (Rs 786 million) in Q2 2006 (adjusted to give effect to a net reversal of additional provisions). Operating Margin during the quarter expanded to 16.5% as compared to 12% in Q2 2006. Operating income was up 40.8% compared to the corresponding quarter last year of US$ 17.8 million (Rs 783 million).
Other income
For Q3 2006, Other income (including interest and dividend income net of interest expenses, profit/loss on sale of investments and other miscellaneous income) stood at US$ 2.9 million (Rs 135 million) lower than US$ 4.0 million (Rs 187 million) in Q2 2006. Other income was higher by 88.4% when compared to US$ 1.6 million (Rs 69 million) in Q3 2005.
Profit before tax
Profit before tax increased 32.8% to US$ 28.0 million (Rs 1,288 million) when compared to PBT adjusted for additional provisions at US$ 21.1 million (Rs 968 million) in Q2 2006. Profit before tax was higher by 44.7% yoy as compared to Q3 2005.
Income taxes
Income tax for the quarter was at US$ 5.8 million (Rs 264 million) at 20.5% effective tax rate on Profit before tax. The adjusted Income tax for Q2 was at US$ 4.4 million (Rs 202 million) at effective tax rate of 20.9% on profit before tax. Total income tax in Q2 2006 of US$ 31.5 million (Rs 1,444 million) included US$ 27.1 million pertaining to re-assessed corporate taxes for earlier years.
Net income
In Q3 2006 Net income was at US$ 22.3 million (Rs 1,024 million) higher by 33.4% when compared to net income of US$ 16.7 million (Rs 766 million) in Q2 2006, which is adjusted for additional provisions. Unadjusted net income for the previous quarter was at (-) US$ 3.2 million ((-)Rs 147 million). Net income increased 37.2% from Q3 2005.
Balance Sheet and Cash Flow changes
Against Net Income of US$ 22.3 million (Rs 1,024 million), cash from operating activities was US$ 11.0 million (Rs 507 million) net of changes in current assets and liabilities of US$ 19.8 million and Non cash charges of US$ 7.8 million comprising of depreciation and amortization (US$ 4.6 million), deferred taxes (US$ 2.7 million), and other charges of (US$ 0.5 million).
Net Cash used in investing activities was US$ 17.9 million (Rs 825 million) including capital expenditure of US$ 13.5 million (Rs 620 million).
Net cash used in financing activities was US$ 1.1 million (Rs 51 million) comprising largely of dividend payouts on common shares.
With these changes the overall cash and cash equivalent position at the end of the quarter was US$ 45.4 million (Rs 2,084 million) lower by around US$ 7.6 million in comparison to US$ 53.0 million (Rs 2,432 million) at the end of Q2 2006.
At the close of Q3 2006, cash & cash equivalents (including short term investments) were at US$ 270.1 million (Rs 12,413 million), compared to US$ 271.06 (Rs 12,433 million) at close of Q2 2006.
Receivables at the end of the Q3 2006 were at US$ 108.4 million (Rs 4,982 million) representing a small increase in number of days outstanding at 67 days against 64 days in Q2 2006 at US$ 98.5 million.
Figures in Million INR except EPS and Share Data
CONSOLIDATED STATEMENT OF INCOME - BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
----------------------------------------------------------------------
Particulars Q3 2006 Q3 2005 YoY Q2 2006
Change
----------------------------------------------------------------------
Exchange rate $1 = INR 45.95 43.94 - 45.87
----------------------------------------------------------------------
Revenues 6,970.9 5,197.1 34.1% 6,560.7
----------------------------------------------------------------------
Cost of revenues 4,343.5 3,284.6 32.2% 3,951.7
----------------------------------------------------------------------
Depreciation 142.0 121.8 16.6% 146.3
----------------------------------------------------------------------
Gross Profit 2,485.5 1,790.8 38.8% 2,462.6
----------------------------------------------------------------------
Sales and marketing
expenses 507.2 420.8 20.5% 505.7
----------------------------------------------------------------------
General and administrative
expenses 743.7 602.4 23.4% 843.4
----------------------------------------------------------------------
----------------------------------------------------------------------
Provision for doubtful debt
and advances 23.9 8.6 - 7.4
----------------------------------------------------------------------
Foreign exchange (gain) /
loss, net 58.0 -23.8 - -4.5
----------------------------------------------------------------------
Operating income 1,152.7 782.8 47.3% 1,110.7
----------------------------------------------------------------------
Initial public offering
related expenses - - - -
----------------------------------------------------------------------
Other income / (expenses),
net 135.3 68.7 97.0% 186.8
----------------------------------------------------------------------
Income before income taxes 1,288.1 851.5 51.3% 1,297.6
----------------------------------------------------------------------
Income taxes 264.3 137.9 91.6% 1,444.5
----------------------------------------------------------------------
Net income 1,023.8 713.6 43.5% -147.0
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic 7.42 5.70 -1.07
----------------------------------------------------------------------
- Diluted 7.37 5.63 -1.07
----------------------------------------------------------------------
Weighted average number of
common shares used in
computing earnings per
----------------------------------------------------------------------
- Basic 137,940,096 125,116,730 137,889,376
----------------------------------------------------------------------
- Diluted 138,861,054 126,835,729 137,889,376
----------------------------------------------------------------------
Additional Q2 2006 QoQ Change
Particulars QoQ provisions (Excluding Excluding
Change in Q2 Additional Additional
2006(a) Provisions) Provisions
----------------------------------------------------------------------
Exchange rate $1 = INR - 45.87 45.87 -
----------------------------------------------------------------------
Revenues 6.3% - 6,560.7 6.3%
----------------------------------------------------------------------
Cost of revenues 9.9% -324.7 (1) 4,276.4 1.6%
----------------------------------------------------------------------
Depreciation -2.9% - 146.3 -2.9%
----------------------------------------------------------------------
Gross Profit 0.9% 324.7(1) 2,137.9 16.3%
----------------------------------------------------------------------
Sales and marketing expenses 0.3% - 505.7 0.3%
----------------------------------------------------------------------
General and administrative
expenses -11.8% - 843.4 -11.8%
----------------------------------------------------------------------
----------------------------------------------------------------------
Provision for doubtful debt
and advances - - 7.4 -
----------------------------------------------------------------------
Foreign exchange (gain) /
loss, net - - -4.5 -
----------------------------------------------------------------------
Operating income 3.8% 324.7 (1) 786.0 46.7%
----------------------------------------------------------------------
Initial public offering
related expenses - - - -
----------------------------------------------------------------------
Other income / (expenses),
net -27.6% 4.8 182.1 -25.7%
----------------------------------------------------------------------
Income before income taxes -0.7% 329.5 (2) 968.1 33.1%
----------------------------------------------------------------------
Income taxes -81.7% 1,242.4 202.1 30.8%
----------------------------------------------------------------------
Net income - -912.9 (3) 766.0 33.7%
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic
----------------------------------------------------------------------
- Diluted
----------------------------------------------------------------------
Weighted average number of
common shares used in
computing earnings per
----------------------------------------------------------------------
- Basic
----------------------------------------------------------------------
- Diluted
----------------------------------------------------------------------
2 shares = 1ADS
(a) Prior years' tax review by IRS and the Department of Labor Review
by Patni's US Operations has resulted in the net reversals of
additional provisions leading to an increase in Q2 2006 Gross Profit
and Operating Income and a decrease in Q2 2006 Net Income.
1 - due to reversal of payroll taxes for earlier years, net of accrual
from DOL review
2 - impact of 1, net of write-back of interest/penalty for earlier
years
3 - impact of re-assessed corporate taxes for earlier years, net of 2
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 30th September 2006.
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 8 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.
Attached Fact Sheet (results & analysis tables)
About Patni Computer Systems Ltd:
About Patni: Patni Computer Systems Limited (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI) is a global IT Services provider servicing Global 2000 clients. Patni caters to its clients through its industry-focused practices, including insurance, manufacturing, financial services, telecommunications, and its technology-focused practices. With employee strength of over 12,000 and multiple offshore development facilities across eight cities; Patni has 23 international offices across the Americas, Europe and Asia-Pacific. Patni has registered revenues of US$ 450 million for the year 2005. Patni's service offerings include application development, application maintenance and support, packaged software implementation, infrastructure management services, product engineering services, business process outsourcing and quality assurance services.
Committed to quality, Patni adds value to its client's businesses through well-established and structured methodologies, tools and techniques. Patni is an ISO 9001: 2000 certified and SEI-CMMi Level 5 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. For more information on Patni, please visit www.patni.com.
Safe Harbor:
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.
PATNI COMPUTER SYSTEMS LIMITED
FINANCIAL AND OPERATIONS INFORMATION FOR THE
FISCAL YEAR AND SECOND QUARTER ENDED SEP 30, 2006
October 27, 2006
NOTES:
-- 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 Sep 30, 2006.
-- 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.
A1) CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ '000)
For the quarter / period ended
----------------------------------------------------------------------
Particulars Sept 30 Sept 30 YoY
2006 2005 Change
%
----------------------------------------------------------------------
Revenues 151,707 118,277 28.3%
----------------------------------------------------------------------
Cost of revenues 94,526 74,751 26.5%
----------------------------------------------------------------------
Depreciation 3,091 2,771 11.5%
----------------------------------------------------------------------
Gross Profit 54,090 40,755 32.7%
----------------------------------------------------------------------
Sales and marketing expenses 11,037 9,576 15.3%
----------------------------------------------------------------------
General and administrative expenses 16,185 13,711 18.0%
----------------------------------------------------------------------
Provision for doubtful debts and
advances 520 195 -
----------------------------------------------------------------------
Foreign exchange (gain) / loss, net 1,262 (542) -
----------------------------------------------------------------------
Operating income 25,086 17,815 40.8%
----------------------------------------------------------------------
Other income / (expense), net 2,946 1,563 88.4%
----------------------------------------------------------------------
Income before income taxes 28,032 19,378 44.7%
----------------------------------------------------------------------
Income taxes 5,751 3,138 83.3%
----------------------------------------------------------------------
Net income/(loss) 22,281 16,240 37.2%
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic $0.16 $0.13
----------------------------------------------------------------------
- Diluted $0.16 $0.13
----------------------------------------------------------------------
Weighted average number of common
shares used in computing earnings per
share
----------------------------------------------------------------------
- Basic 137,940,096 125,116,730
----------------------------------------------------------------------
- Diluted 138,861,054 126,835,729
======================================================================
Particulars June 30 QoQ
2006 Change
% 2005
----------------------------------------------------------------------
Revenues 143,027 6.1% 450,332
----------------------------------------------------------------------
Cost of revenues 86,150 9.7% 278,068
----------------------------------------------------------------------
Depreciation 3,190 -3.1% 10,413
----------------------------------------------------------------------
Gross Profit 53,687 0.8% 161,851
----------------------------------------------------------------------
Sales and marketing expenses 11,024 0.1% 36,059
----------------------------------------------------------------------
General and administrative expenses 18,386 -12.0% 53,822
----------------------------------------------------------------------
Provision for doubtful debts and
advances 161 - (152)
----------------------------------------------------------------------
Foreign exchange (gain) / loss, net (98) - 1,693
----------------------------------------------------------------------
Operating income 24,214 3.6% 70,429
----------------------------------------------------------------------
Other income / (expense), net 4,073 -27.7% 4,241
----------------------------------------------------------------------
Income before income taxes 28,287 -0.9% 74,670
----------------------------------------------------------------------
Income taxes 31,492 -81.7% 13,803
----------------------------------------------------------------------
Net income/(loss) (3,205) - 60,867
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic $(0.02) $0.48
----------------------------------------------------------------------
- Diluted $(0.02) $0.48
----------------------------------------------------------------------
Weighted average number of common
shares used in computing earnings per
share
----------------------------------------------------------------------
- Basic 137,889,376 125,736,592
----------------------------------------------------------------------
- Diluted 137,889,376 127,457,632
======================================================================
A2) CONSOLIDATED BALANCE SHEET USGAAP (US$ '000)
Particulars As on As on As on
30-Sep-0630-Jun-0630-Sep-05
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Total current assets 427,882 428,945 292,280
----------------------------------------------------------------------
Goodwill 40,172 39,883 30,357
----------------------------------------------------------------------
Intangible assets, net 9,950 10,212 11,297
----------------------------------------------------------------------
Property, plant, and equipment, net 114,654 105,042 85,316
----------------------------------------------------------------------
Other assets 5,601 7,899 6,229
----------------------------------------------------------------------
Total assets 598,259 591,980 425,479
----------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------
Total current liabilities 123,410 144,228 75,356
----------------------------------------------------------------------
Capital lease obligations excluding
current installments 524 480 449
----------------------------------------------------------------------
Other liabilities 12,556 12,525 14,097
----------------------------------------------------------------------
Total liabilities 136,490 157,232 89,902
----------------------------------------------------------------------
Total shareholders' equity 461,769 434,747 335,577
----------------------------------------------------------------------
Total liabilities & shareholders' equity 598,259 591,980 425,479
======================================================================
A3) CONSOLIDATED CASH FLOW STATEMENT USGAAP (US$ '000)
----------------------------------------------------------------------
Particulars Sept 30 June 30 Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Net cash provided by operating
activities 11,027 16,787 31,033 69,584
----------------------------------------------------------------------
Net cash used in investing
activities (17,944)(12,046)(23,059)(113,854)
----------------------------------------------------------------------
Capital expenditure, net (13,495)(12,656)(15,672) (51,050)
----------------------------------------------------------------------
Investment in securities, net (4,448) 609 (7,387) (57,225)
----------------------------------------------------------------------
Investment in subsidiary, net of
cash acquired - - - (5,579)
----------------------------------------------------------------------
Net cash provided / (used) in
financing activities (1,106) (7,303) (463) 111,875
----------------------------------------------------------------------
Others (94) (99) (120) (329)
----------------------------------------------------------------------
Common shares issued, net of
expenses 161 184 639 118,736
----------------------------------------------------------------------
Dividend on common shares (1,174) (7,388) (983) (6,532)
----------------------------------------------------------------------
Net increase / (decrease) in cash
and equivalents (8,023) (2,563) 7,511 67,605
----------------------------------------------------------------------
Effect of exchange rate changes on
cash and equivalents 346 (5,061) (852) (1,508)
----------------------------------------------------------------------
Cash and equivalents at the
beginning of the period 53,027 60,652 25,147 77,143
----------------------------------------------------------------------
Cash and equivalents at the end of
the period 45,350 53,027 31,806 143,241
======================================================================
B1) CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS. '000)
For the quarter / period ended
----------------------------------------------------------------------
Particulars Sept 30 Sept 30 Change
2006 2005 %
----------------------------------------------------------------------
Sales and service income 6,999,399 5,163,772 35.5%
----------------------------------------------------------------------
Other income 174,396 112,189 55.4%
----------------------------------------------------------------------
Total income 7,173,795 5,275,961 36.0%
----------------------------------------------------------------------
Staff costs 3,976,536 3,289,503 20.9%
----------------------------------------------------------------------
Selling, general and administration
expenses 1,719,891 1,406,283 22.3%
----------------------------------------------------------------------
Interest 22,103 56,083 -60.6%
----------------------------------------------------------------------
Total expenditure 5,718,530 4,751,869 20.3%
----------------------------------------------------------------------
Net profit before tax and adjustments 1,455,265 524,092 177.7%
----------------------------------------------------------------------
Provision for taxation 275,657 26,758 930.2%
----------------------------------------------------------------------
Prior period adjustment - -
----------------------------------------------------------------------
Profit/(loss) for the year after
taxation 1,179,608 497,334 137.2%
----------------------------------------------------------------------
Profit and loss account, brought
forward 8,649,780 8,787,364 -1.6%
----------------------------------------------------------------------
Equity in earning of affiliate
----------------------------------------------------------------------
Amount available for appropriation 9,829,388 9,284,698 5.9%
----------------------------------------------------------------------
Proposed dividend on equity shares - -
----------------------------------------------------------------------
Dividend on equity shares of subsidiary -
----------------------------------------------------------------------
Dividend tax - -
----------------------------------------------------------------------
Transfer to general reserve -
----------------------------------------------------------------------
Profit and loss account, carried
forward 9,829,388 9,284,698 5.9%
----------------------------------------------------------------------
Earning per share (Rs. per equity share
of Rs. 2 each)
----------------------------------------------------------------------
- Basic 8.55 3.97
----------------------------------------------------------------------
- Diluted 8.49 3.92
----------------------------------------------------------------------
Weighted average number of common
shares used in computing earnings per
share
----------------------------------------------------------------------
- Basic 137,940,096 125,116,730
----------------------------------------------------------------------
- Diluted 138,926,189 126,835,729
======================================================================
Particulars June 30 Change
2006 % 2005
----------------------------------------------------------------------
Sales and service income 6,490,885 7.8% 19,869,306
----------------------------------------------------------------------
Other income 131,212 32.9% 381,932
----------------------------------------------------------------------
Total income 6,622,097 8.3% 20,251,238
----------------------------------------------------------------------
Staff costs 3,538,407 12.4% 11,197,700
----------------------------------------------------------------------
Selling, general and administration
expenses 1,729,778 -0.6% 5,609,358
----------------------------------------------------------------------
Interest 128,655 -82.8% 81,234
----------------------------------------------------------------------
Total expenditure 5,396,840 6.0% 16,888,292
----------------------------------------------------------------------
Net profit before tax and adjustments 1,225,257 18.8% 3,362,946
----------------------------------------------------------------------
Provision for taxation 1,866,598 -85.2% 466,166
----------------------------------------------------------------------
Prior period adjustment 291,898 909,687
----------------------------------------------------------------------
Profit/(loss) for the year after
taxation (933,239) - 1,987,093
----------------------------------------------------------------------
Profit and loss account, brought
forward 9,583,348 -9.7% 7,480,016
----------------------------------------------------------------------
Equity in earning of affiliate
----------------------------------------------------------------------
Amount available for appropriation 8,650,109 13.6% 9,467,109
----------------------------------------------------------------------
Proposed dividend on equity shares 289 344,684
----------------------------------------------------------------------
Dividend on equity shares of subsidiary - -
----------------------------------------------------------------------
Dividend tax 40 50,733
----------------------------------------------------------------------
Transfer to general reserve - 194,413
----------------------------------------------------------------------
Profit and loss account, carried
forward 8,649,780 13.6% 8,877,279
----------------------------------------------------------------------
Earning per share (Rs. per equity share
of Rs. 2 each)
----------------------------------------------------------------------
- Basic (6.77) 15.80
----------------------------------------------------------------------
- Diluted (6.77) 15.59
----------------------------------------------------------------------
Weighted average number of common
shares used in computing earnings per
share
----------------------------------------------------------------------
- Basic 137,889,376 125,736,592
----------------------------------------------------------------------
- Diluted 137,889,376 127,457,632
======================================================================
B2) CONSOLIDATED BALANCE SHEET - INDIAN GAAP (RS. '000):
----------------------------------------------------------------------
Particulars As on As on As on
30-Sep-06 30-Jun-06 30-Sep-05
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Current assets, loans and advances 9,014,490 9,233,033 6,901,675
----------------------------------------------------------------------
Goodwill 3,512,601 3,506,131 2,886,750
----------------------------------------------------------------------
Fixed assets(Net of Depreciation) 5,314,294 4,887,766 3,794,912
----------------------------------------------------------------------
Investments 10,179,064 9,921,888 5,805,091
----------------------------------------------------------------------
Deferred tax asset, net 481,789 594,815 436,523
----------------------------------------------------------------------
Total assets 28,502,238 28,143,633 19,824,951
----------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------
Current liabilities and provisions 5,970,221 6,884,978 3,693,057
----------------------------------------------------------------------
Secured loans 30,635 31,462 33,253
----------------------------------------------------------------------
Deferred tax liability, net 154,775 95,354 133,879
----------------------------------------------------------------------
Total liabilities 6,155,631 7,011,794 3,860,189
----------------------------------------------------------------------
Total shareholders' equity 22,346,607 21,131,839 15,964,762
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 28,502,238 28,143,633 19,824,951
======================================================================
B3) CONSOLIDATED CASH FLOW STATEMENT - INDIAN GAAP (RS '000)
----------------------------------------------------------------------
Particulars Sept 30 June 30 Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash flows from / (used in)
operating activities (A) 351,524 891,573 1,066,468 2,631,142
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash flows used in
investing activities (B) (781,855) (572,121) (720,239)(4,378,746)
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash flows from / (used in)
from financing activities
(C) (53,478) (594,040) (27,673) 5,158,724
----------------------------------------------------------------------
----------------------------------------------------------------------
Effect of changes in
exchange rates (D) 58,100 6,673 (13,178) (68,037)
----------------------------------------------------------------------
----------------------------------------------------------------------
Net decrease in cash and
cash equivalents during
the period (A+B+C+D) (425,709) (267,915) 305,378 3,343,083
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash and cash equivalents
at the beginning of the
period 2,436,582 2,704,497 1,094,393 3,364,246
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash and cash equivalents
at the end of the period 2,010,873 2,436,582 1,399,771 6,707,329
======================================================================
C) Reconcilation of Income as per Indian GAAP and US GAAP(RS. '000):
----------------------------------------------------------------------
Particulars Sept 30 June 30 Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
----------------------------------------------------------------------
Consolidated net income as per
Indian GAAP 1,179,608 (933,239)497,334 1,987,093
----------------------------------------------------------------------
Income taxes (2,028) (83,933) (3,902) (52,991)
----------------------------------------------------------------------
Foreign currency differences (85,115) 145,296 17,802 51,364
----------------------------------------------------------------------
Employee retirement benefits (12,830) 10,530 (17,727) (22,082)
----------------------------------------------------------------------
ESOP related Compensation Cost (42,631) (48,833)
----------------------------------------------------------------------
Amortisation of Intangibles,
arising on Business
acquisition (10,933) (9,904)(11,677) (32,754)
----------------------------------------------------------------------
Prior period adjustment -
Impact of prior period tax
estimate - 774,816 227,539 746,661
----------------------------------------------------------------------
Others 6,646 (436) 81 5,319
----------------------------------------------------------------------
Total (144,344) 787,106 212,402 702,681
----------------------------------------------------------------------
----------------------------------------------------------------------
Consolidated net income as per
US GAAP 1,035,263 (146,133)709,736 2,689,774
======================================================================
D1) CONSOLIDATED STATEMENT OF INCOME (RS. '000): BASED ON CONVENIENCE
TRANSLATION
For the quarter / period ended
----------------------------------------------------------------------
Particulars Sept 30 Sept 30 June 30
2006 2005 2006 2005
----------------------------------------------------------------------
Exchange rate$1 =
INR 45.95 43.94 45.87 44.95
----------------------------------------------------------------------
Revenues 6,970,944 5,197,093 6,560,658 20,242,423
----------------------------------------------------------------------
Cost of revenues 4,343,464 3,284,553 3,951,697 12,499,165
----------------------------------------------------------------------
Depreciation 142,023 121,759 146,314 468,056
----------------------------------------------------------------------
Gross Profit 2,485,457 1,790,781 2,462,647 7,275,202
----------------------------------------------------------------------
Sales and marketing
expenses 507,174 420,778 505,678 1,620,845
----------------------------------------------------------------------
General and
administrative
expenses 743,698 602,445 843,363 2,419,304
----------------------------------------------------------------------
Provision for
doubtful debts and
advances 23,878 8,576 7,387 (6,830)
----------------------------------------------------------------------
Foreign exchange
(gain) / loss, net 57,988 (23,800) (4,497) 76,107
----------------------------------------------------------------------
Operating income 1,152,719 782,782 1,110,716 3,165,777
----------------------------------------------------------------------
Initial public
offering related
expenses - - - -
----------------------------------------------------------------------
Other income /
(expense), net 135,340 68,692 186,850 190,623
----------------------------------------------------------------------
Income before income
taxes 1,288,059 851,474 1,297,566 3,356,400
----------------------------------------------------------------------
Income taxes 264,254 137,892 1,444,527 620,445
----------------------------------------------------------------------
Net income/(loss) 1,023,805 713,582 (146,961) 2,735,955
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic 7.42 5.70 (1.07) 21.76
----------------------------------------------------------------------
- Diluted 7.37 5.63 (1.07) 21.47
----------------------------------------------------------------------
Weighted average
number of common
shares used in
computing earnings
per share
----------------------------------------------------------------------
- Basic 137,940,096 125,116,730 137,889,376 125,736,592
----------------------------------------------------------------------
- Diluted 138,861,054 126,835,729 137,889,376 127,457,632
======================================================================
D2) CONSOLIDATED BALANCE SHEET USGAAP (RS. '000): BASED ON CONVENIENCE
TRANSLATION
----------------------------------------------------------------------
Particulars As on As on As on
30-Sep-06 30-Jun-06 30-Sep-05
----------------------------------------------------------------------
Exchange rate$1 = INR 45.95 45.87 43.94
----------------------------------------------------------------------
Assets
----------------------------------------------------------------------
Total current assets 19,661,180 19,675,692 12,842,769
----------------------------------------------------------------------
Goodwill 1,845,905 1,829,424 1,333,876
----------------------------------------------------------------------
Intangible assets, net 457,193 468,432 496,389
----------------------------------------------------------------------
Property, plant, and equipment,
net 5,268,351 4,818,258 3,748,801
----------------------------------------------------------------------
Deferred income taxes
----------------------------------------------------------------------
Security deposits with affiliates
----------------------------------------------------------------------
Other assets 257,368 362,306 273,709
----------------------------------------------------------------------
Total assets 27,489,997 27,154,112 18,695,544
----------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------
Total current liabilities 5,670,691 6,615,720 3,311,126
----------------------------------------------------------------------
Capital lease obligations excl.
installments 24,061 22,008 19,730
----------------------------------------------------------------------
Other liabilities 576,948 574,516 619,435
----------------------------------------------------------------------
Deferred income taxes
----------------------------------------------------------------------
Total liabilities 6,271,700 7,212,244 3,950,291
----------------------------------------------------------------------
Total shareholders' equity 21,218,296 19,941,868 14,745,254
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 27,489,997 27,154,112 18,695,544
======================================================================
D3) CONSOLIDATED CASH FLOW STATEMENT USGAAP (RS '000): BASED ON
CONVENIENCE TRANSLATION
----------------------------------------------------------------------
Particulars Sept 30 June 30 Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Exchange rate $1 = INR 45.95 45.87 43.94 44.95
----------------------------------------------------------------------
Net cash provided by
operating activities 506,713 770,001 1,363,599 3,127,820
----------------------------------------------------------------------
Net cash used in investing
activities (824,513) (552,570)(1,013,229)(4,866,990)
----------------------------------------------------------------------
Capital expenditure, net (620,109) (580,526) (688,623)(2,294,712)
----------------------------------------------------------------------
Investment in securities,
net (204,404) 27,956 (324,606)(2,572,278)
----------------------------------------------------------------------
Investment in subsidiary,
net of cash acquired - - - -
----------------------------------------------------------------------
Net cash provided / (used)
in financing activities (50,838) (335,002) (20,358) 5,028,801
----------------------------------------------------------------------
Others (4,307) (4,536) (5,257) (14,796)
----------------------------------------------------------------------
Common shares issued, net
of expenses 7,398 8,418 28,079 5,337,194
----------------------------------------------------------------------
Dividend on common shares (53,929) (338,884) (43,179) (293,597)
----------------------------------------------------------------------
Net increase / (decrease)
in cash and equivalents (368,639) (117,570) 330,012 3,289,632
----------------------------------------------------------------------
Effect of exchange rate
changes on cash and
equivalents 15,881 (232,164) (37,422) (67,791)
----------------------------------------------------------------------
Cash and equivalents at
the beginning of the
period 2,436,612 2,782,103 1,104,954 3,467,600
----------------------------------------------------------------------
Cash and equivalents at
the end of the period 2,083,854 2,432,370 1,397,545 6,689,441
======================================================================
E1 ) REVENUE ANALYSIS
----------------------------------------------------------------------
Revenue By Geographical Segments Sept 30June 30Sept 30
2006 2006 2005 2005
======================================================================
United States 82.1% 81.0% 84.3% 84.8%
----------------------------------------------------------------------
Europe 9.7% 11.2% 9.2% 9.1%
----------------------------------------------------------------------
Japan 3.8% 3.9% 4.5% 4.3%
----------------------------------------------------------------------
Asia-Pacific (excluding Japan) 2.8% 2.3% 0.6% 0.7%
----------------------------------------------------------------------
Rest of the world 1.6% 1.7% 1.4% 1.1%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0%100.0%
======================================================================
Revenue by Industry Verticals Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Insurance 23.2% 23.2% 27.5% 27.7%
----------------------------------------------------------------------
Manufacturing 22.5% 21.4% 22.1% 21.9%
----------------------------------------------------------------------
Financial Services 15.6% 15.5% 17.7% 16.0%
----------------------------------------------------------------------
Telecommunications 17.1% 20.2% 14.9% 15.3%
----------------------------------------------------------------------
Growth Industries 6.9% 5.8% 6.1% 6.5%
----------------------------------------------------------------------
Independent Software Vendors 4.0% 4.2% 4.7% 5.0%
----------------------------------------------------------------------
Product Engineering Servcies 10.6% 9.7% 7.1% 7.5%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0%100.0%
======================================================================
Revenue by Service Offerings Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Application Development & Maintenance 69.8% 71.8% 72.4% 73.0%
----------------------------------------------------------------------
Enterprise Application Systems 14.2% 13.6% 13.4% 12.5%
----------------------------------------------------------------------
Embedded Technology Services 9.7% 9.0% 7.1% 7.4%
----------------------------------------------------------------------
Enterprise Systems Management 4.6% 4.0% 5.5% 5.3%
----------------------------------------------------------------------
Others 1.8% 1.6% 1.8% 1.8%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0%100.0%
======================================================================
Revenue by Project Type Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Time and Material 65.1% 64.0% 56.6% 59.5%
----------------------------------------------------------------------
Fixed Price (including Fixed Price SLA) 34.9% 36.0% 43.4% 40.5%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0%100.0%
======================================================================
E2) CLIENT- REVENUE METRICS
----------------------------------------------------------------------
Particulates Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Top client 14.1% 14.5% 23.4%22.1%
----------------------------------------------------------------------
Top 5 Clients 36.9% 38.2% 48.7%46.8%
----------------------------------------------------------------------
Top 10 Clients 51.6% 54.1% 61.2%59.3%
----------------------------------------------------------------------
Client data
----------------------------------------------------------------------
No of $1 million clients 71 64 58 61
----------------------------------------------------------------------
No of new clients 27 23 18 74
----------------------------------------------------------------------
No. of active Clients 235 220 191 199
----------------------------------------------------------------------
% of Repeat Business 90.2% 92.0% 91.1%91.7%
======================================================================
E3) EFFORTS AND UTLISATION
----------------------------------------------------------------------
Efforts Mix Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Onsite efforts 33.9% 33.7% 35.0% 35.4%
----------------------------------------------------------------------
Offshore efforts 66.1% 66.3% 65.0% 64.6%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0%100.0%
======================================================================
Utilisation Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Utilisation 72.3% 70.2% 67.7%67.2%
----------------------------------------------------------------------
E4) EMPLOYEE METRICS
----------------------------------------------------------------------
Sept 30June 30Sept 30
2006 2006 2005 2005
----------------------------------------------------------------------
Offshore 9,648 9,908 8,750 9,221
----------------------------------------------------------------------
Onsite 2,780 2,700 2,506 2,581
----------------------------------------------------------------------
Total Employees 12,428 12,608 11,256 11,802
----------------------------------------------------------------------
Net Additions (180) 460 379 2,141
----------------------------------------------------------------------
Sales & Support Staff 1,278 1,306 1,150 1,172
----------------------------------------------------------------------
Attrition (LTM) excluding BPO 24.5% 21.0% 17.3% 18.6%
---------------------------------------------------------------------- |
