Fwd: Patni Computers Q3CY11 Result Update; Encouraging improvement, see value in the stock; Not Rated

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Deepak Vaishnav

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Oct 22, 2011, 4:08:35 AM10/22/11
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Patni Computers

Encouraging  improvement, see value in the stock

 

NOT RATED

 

CMP: Rs338                                        Target Price: N.A

n     Decent operational performance ahead of estimates. Revenues at US$ 191 mn(+3.9% QoQ) with margins improving by ~600 bps QoQ after the sharp fall in June’11 qtr

n     Profits at Rs. 842bn (-5.3% QoQ), beat est despite higher hedging losses (Rs 340 mn). Headcount reduces by ~500 to 17,850 with utilization improving by ~300 bps QoQ to 78.7%

n     Front end integration with iGate completed while Delivery integration to be completed over next 12-18 months. Co’s attrition has been brought below historical levels

n     We find value in Patni given cash at ~38% of mkt cap, improvement in op performance ahead. Potential delisting by parent iGate remains an additional upside trigger

 

Regards,

Manik Taneja

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : manik....@emkayglobal.com 

Board No. : +91-22-66121212 | Extn. : 253 | DID : 66121253 | Mob : +919833934924 |

 

 


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Patni Computers Q3CY11 Result Update.pdf
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