iGate Patni to invest $120mn for expanding India facilities

The company has posted a net profit of Rs 90.27 crore for the same period a year ago.

Updated: Jan 25, 2012, 20:29 PM IST

Bangalore: IT company iGate Patni Wednesday said it has got approval for expanding its facilities in Pune, Mumbai and Bangalore at an investment of USD 120 million.

"A large capital outlay of USD 120 million has been approved to build a residential training facility in Pune along with a 5,000 member capacity delivery centre, campus expansion in Mumbai and another extra phase in Bangalore," the company said in a statement.

iGate Patni Wednesday also reported more than two-fold jump in its consolidated net profit at Rs 200.42 crore for fourth quarter which ended on December 31, 2011.

The company has posted a net profit of Rs 90.27 crore for the same period a year ago.

The revenue during the period under review increased by 16 percent to Rs 1,009.19 crore compared to Rs 870.92 crore in the corresponding quarter of 2010.

For year ended December 31, 2011, the company registered a dip of 35.57 percent at Rs 401.46 crore in consolidated net profit compared to Rs 623.17 crore in 2010.

The income of the company increased by 9 percent to Rs 3,627.89 crore compared to Rs 3,328.64 crore in 2010.

"Fiscal year 2011 was a milestone year for iGATE Patni, with the combined entity ending the year with revenue run rate in excess of USD 1 billion. I am particularly happy with the way our integration with Patni has been going smoothly and at an accelerated pace ensuring value protection to all stakeholders," Chief Executive Officer iGATE Patni, Phaneesh Murthy said.

On the outlook for 2012, Murthy said, "We are seeing that our differentiated outcomes-based business model is getting increased traction. I am also happy to report that it looks like almost all our top customers will be expanding work and programs with us."

In the last quarter, the company said that it added 16 new customers and headcount of the company was was at 26,523 employees as of December 31, 2011.

Chief Financial Officer of iGATE Patni Sujit Sircar said that the company has made savings in terms of costs during the year, to the extent of approximately USD 32 million.

The depreciation on value of rupee against dollar helped company in its profitability.