Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
D r o p p i n g c o v e r a g e d u e t o c o n d e n s e d d i s c l o s u r e s….
Patni reported Q3CY11 numbers ahead of toned down estimates. US$
revenues grew 3.9% QoQ to $191 million while rupee revenues increased
8.1% to | 889 crore. Management commentary suggests that front-end
integration work is behind them while back-office in on course. Note, next
quarter onwards the company plans to combine quarterly earnings calls
for both iGate-Patni investors. Astonishingly, factsheet disclosures have
condensed from Q2CY11. Revenue by verticals, client metric and attrition
numbers are conspicuously missing from the Q3CY11 factsheet and
would be released on a consolidated basis along with iGate earnings call
on November 4, 2011. Further, with iGate booking orders from new
accounts and acting as gatekeeper for distributing projects to both
companies, we believe Patni’s quarterly earning could likely be erratic and
tricky to model. Consequently, we are dropping coverage till clarity on
earnings disclosure emerges.
ƒ Revenue and EPS above estimates
Reported revenues increased 8.2%QoQ to | 889.3 crore (I-direct
estimate: | 809.7 crore). However, EBIT margins were in-line with
our 11.8% led by lower staff costs and SG&A expenses. At | 90
crore reported PAT was below our modest | 100 cr estimate.
ƒ Operating metric highlights
Across geographies, EMEA grew by 12.6% QoQ, APAC grew by
3.9% and America grew by 2.6% QoQ from Q2CY12. Patni added 20
new clients this quarter as compared to 11 last quarter. The active
client base stood at 277.
V a l u a t i o n
We expect US$ revenues to grow by 4.3%/5% in CY11E/CY12E and rupee
revenue/EPS to grow by 4.1%/(4.3)% and 7.5%/14%, respectively.
Though iGate would be releasing consolidated factsheet data along with
earnings call, we would appreciate clean factsheet (for Patni) disclosures.
Further, iGate as gatekeeper for revenue distribution could likely lead to
erratic earnings, which would be tricky to model. Consequently, we are
dropping coverage on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
D r o p p i n g c o v e r a g e d u e t o c o n d e n s e d d i s c l o s u r e s….
Patni reported Q3CY11 numbers ahead of toned down estimates. US$
revenues grew 3.9% QoQ to $191 million while rupee revenues increased
8.1% to | 889 crore. Management commentary suggests that front-end
integration work is behind them while back-office in on course. Note, next
quarter onwards the company plans to combine quarterly earnings calls
for both iGate-Patni investors. Astonishingly, factsheet disclosures have
condensed from Q2CY11. Revenue by verticals, client metric and attrition
numbers are conspicuously missing from the Q3CY11 factsheet and
would be released on a consolidated basis along with iGate earnings call
on November 4, 2011. Further, with iGate booking orders from new
accounts and acting as gatekeeper for distributing projects to both
companies, we believe Patni’s quarterly earning could likely be erratic and
tricky to model. Consequently, we are dropping coverage till clarity on
earnings disclosure emerges.
ƒ Revenue and EPS above estimates
Reported revenues increased 8.2%QoQ to | 889.3 crore (I-direct
estimate: | 809.7 crore). However, EBIT margins were in-line with
our 11.8% led by lower staff costs and SG&A expenses. At | 90
crore reported PAT was below our modest | 100 cr estimate.
ƒ Operating metric highlights
Across geographies, EMEA grew by 12.6% QoQ, APAC grew by
3.9% and America grew by 2.6% QoQ from Q2CY12. Patni added 20
new clients this quarter as compared to 11 last quarter. The active
client base stood at 277.
V a l u a t i o n
We expect US$ revenues to grow by 4.3%/5% in CY11E/CY12E and rupee
revenue/EPS to grow by 4.1%/(4.3)% and 7.5%/14%, respectively.
Though iGate would be releasing consolidated factsheet data along with
earnings call, we would appreciate clean factsheet (for Patni) disclosures.
Further, iGate as gatekeeper for revenue distribution could likely lead to
erratic earnings, which would be tricky to model. Consequently, we are
dropping coverage on the stock.
No comments:
Post a Comment