Patni

Company Overview

Patni Snapshot: Company Name Stock Listed At Registered office Established Certifications Revenues for year 2006 Market capitalization Total employee base

: Patni Computer Systems Limited (www.patni.com) : BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI : Yerwada, Pune : 1978 : ISO 9001: 2000, SEI-CMMi Level 5, P-CMM Level 3 : US$ 579 million : US$ 1.72 B : 13,723 [Onsite 3,792, Offshore 8,561, Attrition (%) 30.1, Utilization (%) 71.7]

Operations in India/Dubai/Singapore/US Global Delivery India US and Europe Singapore Sales offices

Centers (GDC) : Pune, Mumbai, Navi Mumbai, Bangalore, Chennai, Gandhi Nagar, Hyderabad, Noida : Bloomington, Boston, London, San Francisco : No Presence, Dubai: Sales Office Only : 22 sales offices world-wide

Organization structure and Key people CXO, Vertical heads, Country Heads

Key People: Narendra Patni : Chairman and CEO Mrinal Sattawala: COO Surjeet Singh : CFO Satish Joshi : CTO Vijay P. Khare : Executive Vice-President, Chief Administrative Officer and Chief Delivery Officer Neeraj Gupta : Executive Vice-President, Telecom and Growth Senior Management Industry BU Brian Stones : Executive Vice-President, European Region Senior Management Sunil Chitale : Senior Vice President and head of the manufacturing practice Sanjiv Bhatia : Vice-President of Consulting Services (Manufacturing) Dr. Sanjay Savla: Senior vice president and head Infrastructure Management Services (IMS) BU Russell Boekenkroeger: Executive Vice-President, Regional Operations Senior Management Milind Padalkar : Senior VP and Head, Enterprise Application Services

Company's core services: Services: Application Development and Maintenance Infrastructure Management Services Business Process Outsourcing Practices: (Strategic business Units) Insurance, Financial Services, Manufacturing, Telecom Media, Growth industries (Retail, logistics and transportation), Product Engineering Competency Centers: Enterprise application Solutions, Quality Assurance, Embedded Technology Center Of excellences: IT Governance, Verification & Validation (Testing services), Business Intelligence PACE: Patni Academy for Competency Enhancement is one of the best training centers among IT world.

Consulting Services:

•

Supply Chain: including supply chain collaboration, sense and respond, advanced planning and execution and inventory optimization

•

Merger Integration: covering operational and IT due diligence, deal risk assessment, postmerger acquisition and post-transition consulting

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Technology Advisory Services: providing IT strategy/governance development, business/IT alignment and IT effectiveness

•

Enterprise Information Management: that include enterprise information delivery, strategies and architectures, business intelligence, analytics, real-time dashboards and Master Data Management

•

CRM: capabilities include advanced pricing, channel management, services management and customer segmentation

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Value Engineering: covering IT investment impact assessment, strategic, economic and operational metric definition, process optimization and value scorecards

Top 5-10 Clients Major Clients: ABN-Amro Conseco

MetLife GE InsuranceWokz Guardian

Fidelity Hitachi

Rooms SolutionsStateFarm Toshiba

Wipro

Birla Soft

Top 5-10 Competitors Major Competitors: Cognizant

TCS

Infosys

Mind Tree

Sector Wise Revenue Break-UP Industry/Year Insurance Manufacturing Financial Services Telecom Others*

• •

2004 32.8% 28.3% 19.2% 2.6% 17.1%

2005 27.7% 21.9% 16.0% 15.3% 19.1%

2006 23.2% 21.7% 15.3% 18.9% 21.0%

Others contains Growth Industries – which comprise of Retail ,Logistics, Travel and Transportation Also please see the latest Q3-2007 Industry break up in financial review section

Geography-wise break-up of revenues: Geography/Year U.S. Europe Japan Asia-Pacific excluding Japan

2004 87.8% 7.9% 3.3% 0.6%

2005 84.8% 9.1% 4.3% 0.7%

2006 80.8% 11.6% 3.8% 2.3%

Rest of the World

0.4%

1.1%

1.5%

Share Holding Pattern: Type Patni Family FII MF/UTI Banks/FI Others (Public)

Holdings 44% 20.3% 3.4% 1.1% 31.2%

General Atlantic Mauritius Ltd. holds major chunk of ADR’s (around 20 %) and also one of the promoters of the company. Financials, Growth Rates: EPS/Sales/Revenue etc And Direct Competitor Comparison: Patni Growth Rate Industry growth Rate Infosys, Wipro, TCS

All Figures In Cr, INR

: 28% : 34% : @ 40-44 % (06-07)

Patni

Infosys

TCS

Wipro

Satyam

Dec '06*

Mar '07

Mar '07

Mar '07

Mar '07

997.83

13,149.00

14,942.09

13,758.50

6,228.47

1,047.59

13,530.00

15,153.74

14,058.90

6,410.08

Total Expenses

660.26

8,908.00

10,636.22

10,515.70

4,699.35

Operating Profit

337.57

4,241.00

4,300.97

3,254.50

1,529.12

Profit Before Tax

305.89

4,152.00

4,170.68

3,176.20

1,573.23

Tax

100.13

369

413.39

334.1

150

Net Profit

205.76

3,783.00

3,757.29

2,842.10

1,423.23

14.46

64.35

36.66

18.61

20.77

150

230

1,300

300

175

159.64

195.14

82.35

63.86

86.65

Sales Total Income

Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Source: moneycontrol

* Patni follows US GAAP so Dec-Dec financial year

Source: Patni Annual Report 06-07

Latest Developments: Internal sources/News Items Acquisitions and Alliances:

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A multiyear $200 Million deal with The Carphone Warehouse. Patni will become a key technology partner providing integrated services across consulting, systems integration, application development and maintenance

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A strategic partnership with Activplant Corporation to provide manufacturers a performance management system to drive maximum efficiency and performance across the enterprise

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Life Sciences Services Company Taratec for $27 million - Acquires high-end Life Science consultancy capability in the areas of Regulatory Compliance, Analytics, Drug Safety, and Pharmacovigilance.

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Telecoms Consulting Specialist Logan-Orviss International - Adds telecoms thought leadership, domain expertise and operational transformation consulting

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Strategic alliance with Clear Technologies to underpin major UK expansion

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Global Forrester survey in 2006, Patni received the highest customer satisfaction rating among Indian offshore supply chain solution providers.

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The BLACK BOOK OF OUTSOURCING ranked Patni at #6 in the list of Best Managed Global Outsourcing Vendors for 2006. Patni has also received the 'Frost & Sullivan Customer Service Leadership Award in the IT Services Market for 2006'.

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Product engineering practice of Patni has received recognition in top 100 players of the global leaders in the engineering services

Company Strategy: Cash rich company, following Inorganic growth strategy to expand,recently recruited quite a no of high profile people at senior management level. Challenges: High attrition rate, slow growth rate, Bad pay master image Company Culture: Patni gives an excellent opportunity to entry level participants. It’s a very process driven company. The culture varies according to the business units, ODC’s. It’s quite vibrant organization, at least Patni club, Mumbai is very active one and arranges no. of activities. Roles Offered: General Designation: Management Associate Roles Offered: BA, Process Consultant, Business specialist, SAP consultant, In Corporate Communication, Brand Management. Roles Offered in SPJCM: BA - Amey Bhide, Mumbai