Patni Computers - Encouraging improvement, see value in the stock :Emkay,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

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