Patni's Q1 2011 Revenue at $190.3M, up 4% QoQ

Patni Computer Systems Limited (Patni) today announced its financial results for the first quarter ended 31^st March 2011.

*Important Note: During Q4’10, based on reviews of certain tax positions for previous years, an amount of US$ 7.5 million was written back. Consequently, profit after tax increased by US$ 7.4 million in 2010. This Variation is referred to as “Extra Ordinary Items” in this press release and have been separately shown as exclusion for non-GAAP presentation in respective lines of other income, tax expense and net income, for comparative purposes and should be read together with the reported US GAAP results.

Performance Highlights for the quarter ended March 31, 2011

• Revenues for the quarter at US$190.3. million (R 8,476.6 million)
  • Up 4.0% QoQ from US$ 183.0 million (R 8,200.3 million)
  • Up 10.4% YoY from US$ 172.3 million (R 7,745.4 million)
  • Revenue concentration of Top 10 Customers also reduced to 45.7% from 48.8% in previous quarter
• Operating Income for the quarter at US$32.1 million (R 1428.1 million)
  • Down 3.2% QoQ from US$ 33.1 million (R 1,483.1 million)
  • Down 11.4% YoY from US$ 36.2 million (R 1,627.0 million)
• Effective Tax Rate for the quarter at 28% against 15% in previous quarter and 17% for full year 2010 excluding Extra Ordinary items.

• Net Income for the quarter at US$26.5 million (R 1179.8 million)
  • Down 32.8% QoQ from US$ 39.4 million (R1,764.6 million)
  • Adjusted for Extra Ordinary items down by 16.8% from US$ 31.8 million for the previous quarter
  • Down 20.5% YoY from US$ 33.3 million (R1,497.1 million)
• EPS for the quarter at US$ 0.20 per share (US$ 0.40 per ADS).

Management Comments

Mr. Jeya Kumar, Chief Executive Officer, said, “Our performance during the quarter was in line with our expectations. Continued focus on serving our customers and all stakeholders along with the integration planning process with iGATE were the major highlights of the quarter. Our recent deal wins are reflective of our strategy to focus on differentiating in micro verticals. While the short-term results may have volatility, long-term prospects of the combined organization post the change of control are strong and compelling.”

Speaking on the occasion, Mr. Surjeet Singh, Chief Financial Officer, said, “All parameters of operating and financial metrics were in line with our estimates. We continue to manage cost structures and forex risks well.”

Client Wins

We won four new multiyear, multiservice contracts of $ 25-30M total contract value each. In EMEA, the contracts were with a major international Healthcare provider and a major international service provider operating in the public sector in the UK. In the US, the contracts were with a leading Customer Care company and a company dealing in Forest Products.

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

UNAUDITED CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ ‘000) for the quarter/ period ended
Particulars		GAAP										NON GAAP Dec 31 2010						GAAP		NON GAAP
Particulars		Mar 31 2011		Mar 31 2010		YoY change %		Dec 31 2010		QoQ change %		Extra Ordinary items **		Dec 31 2010 (Excl Extra Ordinary Items)		QoQ Change %		2010 (Audited)		Extra Ordinary Items**		2010 (Excluding Extra Ordinary items)
Revenue		190.3		172.3		10.4%		183.0		4.0%				183.0		4.0%		701.7				701.7
Cost of revenues		123.2		102.2		20.5%		118.1		4.3%				118.1		4.3%		439.0				439.0
Depreciation		4.1		4.0		1.9%		4.3		-3.6%				4.3		-3.6%		17.0				17.0
Gross Profit		63.0		66.0		-4.7%		60.6		3.9%				60.6		3.9%		245.8				245.8
Sales and marketing expenses		17.6		15.9		11.3%		15.8		11.4%				15.8		11.4%		61.7				61.7
General and administrative expenses		18.9		18.2		3.9%		19.6		-3.8%				19.6		-3.8%		72.4				72.4
Provision for doubtful debts and advances		(0.2)		0.6		-127.7%		0.2		-190.7%				0.2		-190.7%		0.6				0.6
Foreign exchange (gain) / loss, net		(5.5)		(4.8)		14.5%		(8.1)		-32.8%				(8.1)		-32.8%		(22.0)				(22.0)
Operating income		32.1		36.2		-11.4%		33.1		-3.2%				33.1		-3.2%		133.0				133.0
Other income / (expense), net		4.8		4.4		8.2%		5.6		-15.1%		1.4		4.3		12.0%		19.5		1.1		18.4
Income before income taxes		36.8		40.6		-9.3%		38.7		-4.9%		1.4		37.4		-1.4%		152.5		1.1		151.5
Income taxes		10.3		7.3		41.8%		(0.7)		-1658.7%		(6.2)		5.5		87.1%		19.3		(6.3)		25.6
Net income/(loss)		26.5		33.3		-20.5%		39.4		-32.8%		7.5		31.8		-16.8%		133.2		7.4		125.8
Earning per share
- Basic		$ 0.20		$ 0.26		-22.1%		$ 0.30		-33.2%				$ 0.24		-17.3%		$ 1.02				$ 0.97
- Diluted		$ 0.20		$ 0.25		-21.5%		$ 0.29		-33.0%				$ 0.24		-17.1%		$ 0.99				$ 0.94
Weighted average number of common shares used in computing earnings per share
- Basic		131,991,860		129,251,485				131,142,633						131,142,633				130,101,442				130,101,442
- Diluted		134,910,508		133,200,892				134,506,173						134,506,173				133,848,374				133,848,374

** Reviews of certain tax positions for previous years has resulted in net reversal leading to an increase in 2010 Net Income.

1 – Due to write back of provision for interest/ penalties of earlier years
2 – Impact of 1
3 – Due to write back of provision for income tax of earlier years
4 – Impact of 2 and 3

Financial Statements Analysis:

Revenues

Revenues during the quarter were in line with expectation at US$ 190.3 million (R 8,476.6 million) representing a sequential increase of 4.0% from US$ 183.0 million (R 8,200.3 million). Constant currency revenues were up 3.6% on account of volume. Number of active clients was 299 at quarter end as compared to 297 in Q4’2010. New client acquisitions during the quarter were 14.

Gross Margin

Gross Margins were at 33.1% or US$ 63.0 million (R2,804.3 million) against 33.1% or US$ 60.6 million (R2,716.1 million) in the previous quarter. Gross Margin flat compared to last quarter. Marginal reduction in utilization is due to offshore bench and is set off by operating efficiencies.

Non cash expenses in CGS line were US$ 5.6 million which include depreciation and amortization expenses of US$ 5.1 million and stock option charge of US$ 0.5 million. Corresponding expenses for Q4’10 were US$ 5.2 million for depreciation and amortization and US$ 0.8 million for stock option charge.

Selling General and Administrative Expenses (SGA Expenses)

Sales and marketing expenses during the quarter were at US$ 17.6 million (R 785.7 million) at 9.3% as compared to US$ 15.8 million (R 709.2 million) at 8.6% in the previous quarter due period costs

G&A expenses during the quarter were at US$18.9 million (R 840.9 million) at 9.9% as compared to US$ 19.6 million (R 879.6 million) at 10.7%.

Non cash expenses in SGA for the quarter were US$ 4.0 million as compared to US$ 4.1 million in previous quarter which includes depreciation and amortization expenses at US$ 2.2 million for the quarter as compared to US$ 2.0 million in previous quarter and stock option charge at US$ 1.8 million for the quarter as compared to US$ 2.1 million in previous quarter).

Foreign exchange gain/loss

The revaluation and mark to market foreign exchange gain for the quarter were at US$5.5 million (R 243.2 million) as compared to foreign exchange gain of US$ 8.1 million (R 363.8 million) during the previous quarter.

The quarter end rate for debtor’s revaluation was R 44.58. Outstanding contracts at the end of Q1 2011 were about US$ 295 million which are contracted at an overall average rate of R 47.6 against average rupee cost rate of R 45.3

Operating Income

Operating Income including foreign exchange gain / loss was at US$ 32.1 million (R 1428.1 million) or at 16.8% during the quarter as compared to US$ 33.1 million (R1,483.1 million) or at 18.1% during previous quarter.

Other Income

For Q1 CY2011, other income (including interest and dividend income net of interest expenses, profit/loss on sale of investments and other miscellaneous income) stood at 2.5% or US$ 4.8 million (R 212.6 million) during the quarter as compared to 3.1% or US$ 5.6 million (R 251.7 million) during previous quarter.

Other Income adjusted for Extra ordinary items is at US$ 4.3 million or at 2.3% during the previous quarter.

Profit before Tax

Profit before tax for the quarter at 19.4% was US$ 36.8 million (R 1640.6 million), as compared to 21.2% or US$ 38.7 million (R 1,734.8 million) during previous quarter. Profit before Tax adjusted for Extra Ordinary is at US$ 37.4 million or at 20.4% during the previous quarter.

Income Taxes

Income tax for the quarter was at US$ 10.3 million (R 460.9 million) at an effective rate of 28.1%. Income Tax adjusted for extra ordinary items was at US$ 5.5 million at an effective tax rate of 14.8% during the previous quarter.

Net Income

Consequently, net income for the quarter is at 13.9% at US$ 26.5 million (R 1,179.8 million), lower by 32.8% as compared to previous quarter net income of US$ 39.4 million (R1,764.6 million) at 21.5%. Net Income adjusted for Extra ordinary items for previous quarter was at US$ 31.8 million at 17.4% lower by 16.8% as compared to previous quarter.

Balance Sheet and Cash Flow changes

During the quarter, against net income of US$ 26.5 million (R1,179.8 million), cash from operating activities was at US$ 11.2 million (R 499.4 million), net of changes in current assets and liabilities of US$ (-)20.6 million (R 918.4 million),non cash charges comprise of depreciation and amortization including compensation cost of US$ 9.6 million and other adjustments of US$ (-) 4.2 million (comprising of deferred taxes US$2.3 million, deferred cancellation losses relating to roll over cash flow hedges US$0.8 million).

Over all cash and cash equivalents (including short term investments) post translation loss of US$ 2.7 million, cash received from issuances of stock against stock options US$ 4.2 million, capex of US$ 4.4 million were therefore at US$ 377.7 million (R16,822.6 million),as compared to US$ 362.4 million (R16,234.2 million) at the close of previous quarter.

Receivables at the end of Q1 2011 were at US$ 114.1 million (R 5,080,4 million) as compared to US$ 121.6 million at the end of Q4 2010. Number of days outstanding (Including Unbilled receivables) for current quarter was 77 days as compared to 71 days in Q4 2010.

Figures in Million INR except EPS and Share Data

UNAUDITED CONSOLIDATED STATEMENT OF INCOME : BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
Particulars		Mar 31 2011		Mar 31 2010		Dec 31 2010		2010
Exchange rate$1 = INR		44.54		44.95		44.80		44.80
Revenue		8,476.6		7,745.4		8,200.3		31,436.1
Cost of revenues		5,488.9		4,595.5		5,293.0		19,666.7
Depreciation		183.3		181.5		191.2		759.7
Gross Profit		2,804.3		2,968.4		2,716.1		11,009.7
Sales and marketing expenses		785.7		712.7		709.2		2,765.5
General and administrative expenses		840.9		816.9		879.6		3,242.5
Provision for doubtful debts and advances		-7.2		26.1		7.9		27.7
Foreign exchange (gain) / loss, net		(243.2)		(214.3)		(363.8)		(986.0)
Operating income		1,428.1		1,627.0		1,483.1		5,960.0
Other income / (expense), net		212.6		198.2		251.7		872.7
Income before income taxes		1,640.6		1,825.2		1,734.8		6,832.7
Income taxes		460.9		328.1		-29.7		866.3
Net income/(loss)		1,179.8		1,497.1		1,764.6		5,966.4
Earning per share
- Basic		8.94		11.58		13.46		45.86
- Diluted		8.74		11.24		13.12		44.58
Weighted average number of common shares used in computing earnings per share
- Basic		131,991,860		129,251,485		131,142,633		130,101,442
- Diluted		134,910,508		133,200,892		134,506,173		133,848,374

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 quarter ended March 31, 2011

- 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.

- Attached Fact Sheet (results & analysis tables)

About Patni Computer Systems Ltd:

Patni Computer Systems Limited (Patni) (BSE: 532517) (NSE: PATNI) (NYSE: PTI) is a global provider of IT services and business solutions, servicing global 2000 clients. Patni services its clients through its micro-vertical focus in banking, financial services (BFS) and insurance (I); manufacturing, retail, and distribution (MRD); life sciences; communications, media, and utilities (CMU).

With an employee strength of over 17,500; multiple global delivery centers spread across 16 cities worldwide; 30 international offices across the Americas, Europe-Middle East-Africa (EMEA), and Asia-Pacific; Patni has registered revenues of US$ 702 million for the year 2010.

Patni’s service offerings include application development and management, enterprise software & systems integration services, 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: 2008 certified and SEI-CMMI-Dev Level 5 (V 1.2) organization. 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.

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 March 31, 2011.

• 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				Consolidated Statement of Income				4
B2				Consolidated Balance Sheet				5
B3				Consolidated Cash Flow Statement				5
C				Reconciliation 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) UNAUDITED CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ ‘000) for the quarter/ period ended
		GAAP																		NON GAAP Dec 31 2010										GAAP				NON GAAP
Particulars		Mar 31 2011				Mar 31 2010				YoY change %			Dec 31 2010				QoQ change %			Extra Ordinary items **			Dec 31 2010 (Excl Extra Ordinary Items)				QoQ Change %			2010 (Audited)				Extra Ordinary Items**			2010 (Excluding Extra Ordinary items)
Revenue			190,314				172,312			10.4	%			183,042			4.0	%						183,042			4.0	%			701,699							701,699
Cost of revenues			123,236				102,236			20.5	%			118,147			4.3	%						118,147			4.3	%			438,989							438,989
Depreciation			4,116				4,038			1.9	%			4,267			-3.6	%						4,267			-3.6	%			16,958							16,958
Gross Profit			62,962				66,038			-4.7	%			60,627			3.9	%						60,627			3.9	%			245,751							245,751
Sales and marketing expenses			17,640				15,856			11.3	%			15,830			11.4	%						15,830			11.4	%			61,729							61,729
General and administrative expenses			18,880				18,173			3.9	%			19,633			-3.8	%						19,633			-3.8	%			72,377							72,377
Provision for doubtful debts and advances			(161	)			581			-127.7	%			177			-190.7	%						177			-190.7	%			619							619
Foreign exchange (gain) / loss, net			(5,460	)			(4,767	)		14.5	%			(8,120	)		-32.8	%						(8,120	)		-32.8	%			(22,009	)						(22,009	)
Operating income			32,063				36,196			-11.4	%			33,106			-3.2	%						33,106			-3.2	%			133,036							133,036
Other income / (expense), net			4,772				4,409			8.2	%			5,618			-15.1	%		1,356				4,262			12.0	%			19,480			1,064				18,415
Income before income taxes			36,835				40,605			-9.3	%			38,724			-4.9	%		1,356				37,368			-1.4	%			152,515			1,064				151,451
Income taxes			10,347				7,299			41.8	%			(664	)		-1658.7	%		(6,193	)			5,529			87.1	%			19,336			(6,307	)			25,643
Net income/(loss)			26,488				33,306			-20.5	%			39,388			-32.8	%		7,549				31,839			-16.8	%			133,179			7,371				125,808
Earning per share
- Basic		$	0.20			$	0.26			-22.1	%		$	0.30			-33.2	%					$	0.24			-17.3	%		$	1.02						$	0.97
- Diluted		$	0.20			$	0.25			-21.5	%		$	0.29			-33.0	%					$	0.24			-17.1	%		$	0.99						$	0.94
Weighted average number of common shares used in computing earnings per share
- Basic			131,991,860				129,251,485							131,142,633										131,142,633							130,101,442							130,101,442
- Diluted			134,910,508				133,200,892							134,506,173										134,506,173							133,848,374							133,848,374

** Reviews of certain tax positions for previous years has resulted in net reversal leading to an increase in 2010 Net Income.

1 – Due to write back of provision for interest/ penalties of earlier years
2 – Impact of 1
3 – Due to write back of provision for income tax of earlier years
4 – Impact of 2 and 3

A2) CONSOLIDATED BALANCE SHEET USGAAP (US$ ‘000)
Particulars									31-Mar-11 (Unaudited)			31-Dec-10 (Audited)			31-Mar-10 (Unaudited)
Assets
Total current assets									616,960			576,553			666,470
Goodwill									69,840			69,661			65,504
Intangible assets, net									31,059			32,229			21,840
Property, plant, and equipment, net									135,573			136,236			144,403
Other assets									57,761			58,104			73,211
Total assets									911,192			872,784			971,428
Liabilities
Total current liabilities									121,797			122,826			109,641
Capital lease obligations excluding current installments									167			136			79
Other liabilities									52,642			49,987			49,041
Total liabilities									174,605			172,949			158,761
Total shareholders’ equity									736,587			699,835			812,667
Total liabilities & shareholders’ equity									911,192			872,784			971,428
A3) CONSOLIDATED CASH FLOW STATEMENT USGAAP (US$ ‘000)
Particulars						Mar 31 2011 (Unaudited)			Dec 31 2010 (Unaudited)			Mar 31 2010 (Unaudited)			2010 (Audited)
Net cash provided by operating activities						11,213			42,705			13,275			136,574
Net cash provided /(used in ) investing activities						(42,048	)		(47,930	)		(21,317	)		86,590
Capital expenditure, net						(4,433	)		(2,927	)		(2,469	)		(11,091	)
Investment in securities, net						(37,615	)		(44,434	)		(18,848	)		117,805
Payment for acquisition/intangibles/Joint Venture						-			(569	)		-			(20,124	)
Net cash provided / (used) in financing activities						4,571			2,258			1,410			(205,603	)
Others						336			62			(50	)		(214	)
Common shares issued / (Buy Back)						4,217			2,225			1,459			11,027
Dividend on common shares						18			(29	)		0			(216,416	)
Net increase / (decrease) in cash and equivalents						(26,264	)		(2,966	)		(6,633	)		17,562
Effect of exchange rate changes on cash and equivalents						461			(3,796	)		1,892			(2,286	)
Cash and equivalents at the beginning of the period						78,734			85,497			63,459			63,459
Cash and equivalents at the end of the period						52,931			78,734			58,718			78,734
B1)CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS. ‘000)
For the quarter / period ended
Particulars		Mar 31 2011 (Audited)		Mar 31 2010 (Audited)		YoY Change %			Dec 31 2010 (Unaudited)			QoQ Change %			2010 (Audited)
Sales and service income		8,593,821		7,816,300		9.9	%		8,208,711			4.7	%		31,880,847
Other income		532,209		501,629		6.1	%		646,925			-17.7	%		2,194,249
Total income		9,126,030		8,317,929		9.7	%		8,855,636			3.1	%		34,075,096
Staff costs		5,372,042		4,562,003		17.8	%		4,966,579			8.2	%		18,898,084
Selling, general and administration expenses		1,997,085		1,834,087		8.9	%		2,101,908			-5.0	%		8,060,461
Interest		4,913		21,906		-77.6	%		10,219			-51.9	%		47,765
Total expenditure		7,374,040		6,417,996		14.9	%		7,078,705			4.2	%		27,006,310
Net profit before tax and adjustments		1,751,990		1,899,933		-7.8	%		1,776,931			-1.4	%		7,068,786
Provision for taxation		129,145		329,575		-60.8	%		27,543			368.9	%		837,071
Profit/(loss) for the period after taxation		1,622,845		1,570,358		3.3	%		1,749,388			-7.2	%		6,231,715
Profit and loss account, brought forward		18,932,587		22,972,249		-17.6	%		17,838,246			6.1	%		22,972,249
Amount available for appropriation		20,555,432		24,542,607		-16.2	%		19,587,634			4.9	%		29,203,964
Proposed dividend on equity shares		-		-		0.0	%		-			0.0	%		2,221
Special Interim Dividend on equity shares		-		-		0.0	%		-			0.0	%		8,244,435
Dividend tax		-		-		0.0	%		-			0.0	%		1,369,675
Transfer to general reserve		-		-		0.0	%		655,046			-100.0	%		655,046
Profit and loss account, carried forward		20,555,432		24,542,607		-16.2	%		18,932,588			8.6	%		18,932,587
Earning per share (Rs. per equity share of Rs. 2 each)
- Basic		12.30		12.15		1.2	%		13.34			-7.8	%		47.90
- Diluted		12.02		11.75		2.3	%		12.99			-7.5	%		46.44
Weighted average number of common shares used in computing earnings per share
- Basic		131,991,860		129,251,485					131,142,633						130,101,442
- Diluted		135,059,362		133,642,520					134,650,351						134,193,727

B2) AUDITED CONSOLIDATED BALANCE SHEET - INDIAN GAAP (RS. ‘000)
Particulars					31-Mar-11			31-Dec-10			31-Mar-10
Assets
Current assets, loans and advances					14,112,490			14,085,747			12,786,771
Goodwill					4,836,443			4,838,060			4,629,076
Fixed assets(Net of Depreciation)					8,146,286			8,217,406			8,103,057
Investments					14,363,442			12,614,890			18,644,419
Deferred tax asset, net					632,505			695,065			778,338
Total assets					42,091,166			40,451,168			44,941,661
Liabilities
Current liabilities and provisions					7,499,330			7,786,917			7,593,076
Secured loans					11,349			10,649			7,599
Deferred tax liability, net					80,998			31,246			65,820
Total liabilities					7,591,677			7,828,812			7,666,495
Total shareholders’ equity					34,499,489			32,622,356			37,275,166
Total liabilities & shareholders’ equity					42,091,166			40,451,168			44,941,661
B3) CONSOLIDATED CASH FLOW STATEMENT - INDIAN GAAP (RS ‘000)
Particulars		Mar 31 2011 (Audited)			Dec 31 2010 (Unaudited)			Mar 31 2010 (Audited)			2010 (Audited)
Cash flows from / (used in) operating activities (A)		351,188			1,792,035			449,134			5,693,282
Cash flows from / ( used in) investing activities (B)		(1,727,339	)		(2,207,702	)		(802,967	)		4,560,215
Cash flows from / (used in) from financing activities (C)		191,984			103,021			64,892			(9,626,685	)
Effect of changes in exchange rates (D)		17,638			(14,066	)		(26,650	)		(45,754	)
Net increase / (decrease) in cash and cash equivalents during the period (A+B+C+D)		(1,166,529	)		(326,712	)		(315,592	)		581,058
Cash and cash equivalents at the beginning of the period		3,533,680			3,860,392			2,952,622			2,952,622
Cash and cash equivalents at the end of the period		2,367,151			3,533,680			2,637,030			3,533,680
C) Reconciliation of Income as per Indian GAAP and US GAAP(RS. ‘000)
Particulars		Mar 31 2011			Mar 31 2010			Dec 31 2010			2010
Consolidated net income as per Indian GAAP		1,622,845			1,570,358			1,749,388			6,231,715
Income taxes		(334,700	)		(200	)		54,800			(42,200	)
Foreign currency differences		(11,700	)		(20,500	)		(4,400	)		(29,100	)
Employee retirement benefits		(25,000	)		15,400			(18,300	)		57,400
ESOP related Compensation Cost		(21,500	)		(16,100	)		100			(48,000	)
Amortisation of Intangibles , arising on Business acquisition		(32,600	)		(23,600	)		(34,500	)		(119,100	)
Others		(1,500	)		1,300			10,000			7,200
Total		(427,000	)		(43,700	)		7,700			(173,800	)
Consolidated net income as per US GAAP		1,195,845			1,526,658			1,757,088			6,057,915

D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME (RS. ‘000): BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
Particulars		Mar 31 2011			Mar 31 2010			Dec 31 2010			2010
Exchange rate$1 = INR		44.54			44.95			44.80			44.80
Revenues		8,476,575			7,745,434			8,200,285			31,436,099
Cost of revenues		5,488,938			4,595,495			5,293,003			19,666,719
Depreciation		183,319			181,529			191,180			759,724
Gross Profit		2,804,318			2,968,411			2,716,102			11,009,657
Sales and marketing expenses		785,685			712,705			709,204			2,765,456
General and administrative expenses		840,899			816,881			879,572			3,242,501
Provision for doubtful debts and advances		(7,161	)		26,095			7,941			27,710
Foreign exchange (gain ) / loss, net		(243,171	)		(214,278	)		(363,759	)		(986,005	)
Operating income		1,428,066			1,627,008			1,483,144			5,959,995
Other income / (expense), net		212,558			198,191			251,696			872,685
Income before income taxes		1,640,623			1,825,199			1,734,840			6,832,681
Income taxes		460,862			328,094			(29,740	)		866,267
Net income/(loss)		1,179,761			1,497,105			1,764,580			5,966,414
Earning per share
- Basic		8.94			11.58			13.46			45.86
- Diluted		8.74			11.24			13.12			44.58
Weighted average number of common shares used in computing earnings per share
- Basic		131,991,860			129,251,485			131,142,633			130,101,442
- Diluted		134,910,508			133,200,892			134,506,173			133,848,374
D2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (RS. ‘000): BASED ON CONVENIENCE TRANSLATION
Particulars					As on 31-Mar-11			As on 31-Dec-10			As on 31-Mar-10
Exchange rate$1 = INR					44.54			44.80			44.95
Assets
Total current assets					27,479,386			25,829,573			29,957,845
Goodwill					3,110,693			3,120,833			2,944,383
Intangible assets, net					1,383,351			1,443,838			981,689
Property, plant, and equipment, net					6,038,411			6,103,393			6,490,917
Other assets					2,572,668			2,603,074			3,290,839
Total assets					40,584,508			39,100,712			43,665,673
Liabilities
Total current liabilities					5,424,834			5,502,604			4,928,376
Capital lease obligations excl. installments					7,423			6,081			3,555
Other liabilities					2,344,659			2,239,415			2,204,371
Total liabilities					7,776,916			7,748,100			7,136,302
Total shareholders’ equity					32,807,591			31,352,612			36,529,370
Total liabilities & shareholders’ equity					40,584,508			39,100,712			43,665,673
D3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (RS ‘000): BASED ON CONVENIENCE TRANSLATION
Particulars		Mar 31 2011			Dec 31 2010			Mar 31 2010			2010
Exchange rate $1 = INR		44.54			44.80			44.95			44.80
Net cash provided by operating activities		499,437			1,913,204			596,725			6,118,524
Net cash provided /(used in ) investing activities		(1,872,813	)		(2,147,253	)		(958,219	)		3,879,246
Capital expenditure, net		(197,434	)		(131,129	)		(110,999	)		(496,875	)
Investment in securities, net		(1,675,379	)		(1,990,634	)		(847,220	)		5,277,683
Payment for acquisition/intangibles/Joint Venture		-			(25,491	)		-			(901,562	)
Net cash provided / (used) in financing activities		203,587			101,176			63,360			(9,211,009	)
Others		14,960			2,788			(2,246	)		(9,567	)
Common shares issued / (Buy Back)		187,813			99,698			65,604			494,013
Dividend on common shares		814			(1,310	)		2			(9,695,455	)
Net increase / (decrease) in cash and equivalents		(1,169,789	)		(132,873	)		(298,134	)		786,761
Effect of exchange rate changes on cash and equivalents		20,529			(170,075	)		85,026			(102,432	)
Cash and equivalents at the beginning of the period		3,506,827			3,830,246			2,852,487			2,842,968
Cash and equivalents at the end of the period		2,357,567			3,527,298			2,639,379			3,527,298

E1) REVENUE ANALYSIS
Revenue By Geographical Segments		Mar 31 2011			Dec 31 2010			Mar 31 2010			2010
Americas		78.0	%		81.8	%		79.7	%		80.7	%
EMEA		14.6	%		11.3	%		13.4	%		12.1	%
APAC		7.5	%		6.9	%		6.8	%		7.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%
Revenue by Industry Verticals		Mar 31 2011			Dec 31 2010			Mar 31 2010			2010
Insurance		29.0	%		31.3	%		29.0	%		30.3	%
Manufacturing, Retail and Distribution		30.6	%		30.6	%		30.8	%		30.3	%
Financial Services		11.1	%		11.4	%		11.7	%		11.6	%
Communications,Media & Utilities		12.1	%		9.7	%		12.2	%		11.2	%
Product Engineering Services		17.3	%		16.9	%		16.3	%		16.7	%
Total		100.0	%		100.0	%		100.0	%		100.0	%
Revenue by Service Offerings		Mar 31 2011			Dec 31 2010			Mar 31 2010			2010
Application Development & Maintenance		58.5	%		61.3	%		64.6	%		62.4	%
Package software implementation		13.4	%		11.5	%		13.4	%		12.5	%
Product Engineering Services		12.7	%		12.5	%		12.1	%		12.4	%
Infrastructure Management Services		5.2	%		4.9	%		5.0	%		5.1	%
Business Process Outsourcing		10.2	%		9.9	%		4.9	%		7.5	%
Total		100.0	%		100.0	%		100.0	%		100.0	%
Revenue by Project Type		Mar 31 2011			Dec 31 2010			Mar 31 2010			2010
Time and Material		54.8	%		53.2	%		56.4	%		55.4	%
Fixed Price (including Fixed Price SLA)		45.2	%		46.8	%		43.6	%		44.6	%
Total		100.0	%		100.0	%		100.0	%		100.0	%
E2) CLIENT- REVENUE METRICS
Particulars		Mar 31 2011			Dec 31 2010			Mar 31 2010			2010
Top client		10.5	%		11.5	%		11.7	%		10.9	%
Top 5 Clients		33.7	%		35.9	%		36.4	%		35.9	%
Top 10 Clients		45.7	%		48.8	%		48.7	%		48.8	%
Client data
No of $1 million clients		96			99			92			99
No of $5 million clients		29			28			27			28
No of $10 million clients		15			16			16			16
No of $50 million clients		3			3			3			3
No of new clients		14			19			9			52
No. of active Clients		299			297			260			297
% of Repeat Business		95.8	%		95.6	%		92.5	%		94.6	%
E3) REVENUE MIX AND UTILIZATION
		Mar 31 2010			Dec 31 2010			Mar 31 2010			2010
Efforts
Onsite		26.5	%		26.7	%		25.2	%		26.7	%
Offshore		73.5	%		73.3	%		74.8	%		73.3	%
Revenue
Onsite		52.6	%		52.7	%		53.2	%		53.7	%
Offshore		47.4	%		47.3	%		46.8	%		46.3	%
Utilization		70.0	%		72.4	%		79.9	%		75.3	%
Utilization (Excl Trainees)		74.5	%		76.0	%		84.8	%		78.7	%

E4) EMPLOYEE METRICS
		Mar 31 2011		Dec 31 2010		Mar 31 2010		2010
Total Employees		17,739		17,642		13,959		17,642
Offshore		14,399		14,326		11,118		14,326
Onsite		3,340		3,316		2,841		3,316
Total		17,739		17,642		13,959		17,642
Sales & Support Staff		1,485		1,491		1,415		1,491
Net Additions		97		1,086		(36)		3,647
Attrition (LTM) excluding BPO		24.6%		25.2%		17.7%		25.2%
E5) FACILITIES - INDIA INFRASTRUCTURE (as on Mar 31, 2011)
		Operational**				Under Construction/ Furnishing
Location		Built Up Area (Sq ft)		No. of Seats		Built Up Area (Sq ft)		No. of Seats
Mumbai		183,648		1,825
Navi Mumbai		136,669		1,818
Airoli		462,845		4,473
Pune		254,383		2,743
Gandhinagar		52,277		584
Noida		460,000		3,247
Hyderabad		97,497		757
Bangalore		78,343		784
Chennai		148,000		1,189
		1,873,662		17,420		-		-
** Owned plus leased
E6) RUPEE - CURRENCY RATES AGAINST US DOLLAR
				Mar 31 2011		Dec 31 2010		Mar 31 2010
Rupee
Period end rate				44.58		44.70		44.91
Period average rate				45.23		44.83		45.89
Other Currencies (Average Rate)
AUD				1.00		0.99		0.90
EURO				1.37		1.36		1.38
GBP				1.60		1.58		1.56
YEN				0.01		0.01		0.01