Patni Q3 Revenues at $183.5 Million, in Line with Guidance

MUMBAI, India--(Business Wire)--
Patni Computer Systems Limited (Patni) today announced its
financial results for the third quarter ended September 30, 2008.

Important Note: Based on prior year's tax reviews by IRS, which
were concluded during the quarter, certain provisions have been
reversed resulting in one time increase in gross profit of US$ 2.8
million, other income of US$ 8.3 million and decrease in tax expense
of US$ 7.7 million. Consequently, profit after tax has increased by
US$ 18.7 million. Variation in Patni's Q3 2008 financial performance
as a result of such reversals have been referred to as "Extra Ordinary
Items" in this press release.

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Performance Highlights for the quarter ended September 30, 2008

-- Revenues for the quarter at US$ 183.5 million (Rs. 8,522.5 million)
-- Up 8.3% YoY from US$ 169.5 million (Rs. 6,735.7 million)
-- Up 0.5% sequentially from US$ 182.6 million (Rs. 7,837.1
million)
-- Contribution from top customer marginally changed at 10.5% for
the quarter as compared to 10.4% during previous quarter

-- Operating Income for the quarter at US$ 27.6 million (Rs. 1,283.9
million)
-- Down 4.6% YoY from US$ 29.0 million (Rs. 1,151.4 million)
-- Up 64.6% sequentially from US$ 16.8 million (Rs. 720.7 million)
-- Operating Income adjusted for Extra Ordinary items is at US$
24.9 million for the quarter, sequential increase by 48.1% and
is lower by 14.1% on YoY basis.

-- Net Income for the quarter at US$ 43.1 million (Rs. 2,001.9
million)
-- Up 56.0% YoY from US$ 27.6 million (Rs. 1,097.8 million)
-- Up 78.4% sequentially from US$ 24.2 million (Rs. 1,037.2
million)
-- Net Income adjusted for Extra Ordinary items is at US$ 24.4
million for the quarter, sequential increase by 1.0% and is
lower by 11.6% on YoY basis.

-- EPS for the quarter at US$ 0.32 per share (US$ 0.63 per ADS). EPS
adjusted for one time Extra Ordinary items is at US$ 0.18 per
share ( US $ 0.36 per ADS)

-- Share Buy back Programme completed

Future Outlook:

-- Q4 CY2008 Revenues are expected to be at US$ 176 to US$ 177 million
and Net Income (Excluding the Foreign Exchange Gain/Loss) is
expected to be in the range of US$ 22.0 to US$ 22.5 million
-- This guidance is based on Constant Rupee -USD rate of Rs 47 and
constant GBP -USD rate of 1.85 , EURO-USD rate of 1. 35
-- Mark to Market Forex loss during Q4 2008 is expected to be in
the range of $10m based on current estimates. This may change
depending on further currency movements during the quarter and
will impact our Net Earnings accordingly.
*T

Management Comments

Commenting on the quarter, Mr. Narendra K Patni, Chairman and CEO,
Patni Computer Systems Ltd., said, "We are witnessing deep global
meltdown in the markets and this will impact our business in short
term. We expect the environment to remain uncertain and volatile and
with low visibility. However, we remain bullish on mid term prospects
of our business and continue to invest to enhance our position in the
market place across all dimensions of our business."

Mr. Loek van den Boog, Executive Director, said, "Current
financial crisis will have indirect impact on our industry. In short
run, we expect to see volatility. However, we are very confident that
as the environment settles, the overall demand for global outsourcing
will increase. We are working very closely with our customers in this
tough times and remain positive of our mid to long term prospects."

Speaking on the occasion, Mr. Surjeet Singh, Chief Financial
Officer, said, "The currency benefit due to sharp depreciation of
Rupee was seen at operating level as Dollar appreciated against all
major currencies. We are managing our business tightly on operating
parameters. Our cash position is healthy and we continue to remain
acquisitive to expand our services portfolio and geographical
presence. We continue to remain focused on managing the business
tightly and efficiently."

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Corporate Developments

-- BPO Infrastructure expansion
Patni recently launched its first Green IT-BPO knowledge centre in
Noida. The facility is spread over 5 acres and has a seating
capacity of over 3500. Christened as Patni Knowledge Centre, the
facility was recently awarded the prestigious LEED Platinum
(Leadership in Energy and Environmental Design) rating recognizing
the company's commitment to superior standards of quality, and
efficient utilization and conservation of energy, water and
natural resources. This makes the Patni Knowledge Centre the
second largest Platinum rated building in the world, and the
largest Platinum rated building outside the United States. This
complements the organization's green initiatives towards
environment conservation.
-- Share Buy back Programme completed
During the quarter ended September 30, 2008, the Company bought
back total 8.96 million equity shares on Indian stock exchanges
for a total aggregate consideration of Rs 2012.5 million ( US $
43.3 million) being 84.86% of the total buy back size. The total
buyback has since been completed as of date and the company has
purchased total of 11 million shares for at avg prices of Rs 216.3
per share with total aggregate consideration of Rs 2370 million
($51 million)
*T

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

----------------------------------------------------------------------
UNAUDITED CONSOLIDATED STATEMENT OF INCOME
For the quarter / period ended
----------------------------------------------------------------------

YoY QoQ
Particulars Sep 30 2008 Sep 30 2007 Change Jun 30 2008 Change
% %
----------------------------------------------------------------------
Revenue 183.5 169.5 8.3% 182.6 0.5%
----------------------------------------------------------------------
Cost of
revenues 117.6 112.5 4.6% 122.7 -4.1%
----------------------------------------------------------------------
Depreciation 4.3 4.6 -5.8% 4.5 -3.0%
----------------------------------------------------------------------
Gross Profit 61.5 52.4 17.4% 55.4 11.1%
----------------------------------------------------------------------
Sales and
marketing
expenses 13.2 11.0 19.9% 13.8 -4.7%
----------------------------------------------------------------------
General and
administrative
expenses 21.2 20.1 5.7% 19.8 6.9%
----------------------------------------------------------------------
Provision for
doubtful debts
and advances 0.6 (0.2) -418.1% 0.2 175.1%
----------------------------------------------------------------------
Foreign
exchange
(gain) / loss,
net (1.2) (7.5) -84.3% 4.7 -125.0%
----------------------------------------------------------------------
Operating
income 27.6 29.0 -4.6% 16.8 64.6%
----------------------------------------------------------------------
Other income /
(expense), net 11.4 3.6 212.9% 11.3 0.3%
----------------------------------------------------------------------
Income before
income taxes 39.0 32.6 19.6% 28.1 38.7%
----------------------------------------------------------------------
Income taxes (4.1) 5.0 -182.2% 4.0 -203.5%
----------------------------------------------------------------------
Net
income/(loss) 43.1 27.6 56.0% 24.2 78.4%
----------------------------------------------------------------------
Earning per
share
----------------------------------------------------------------------
- Basic $ 0.32 $ 0.20 59.2% $ 0.17 82.5%
----------------------------------------------------------------------
- Diluted $ 0.32 $ 0.20 60.7% $ 0.17 82.8%
----------------------------------------------------------------------
Weighted
average number
of common
shares used in
computing
earnings per
share
----------------------------------------------------------------------
- Basic 135,925,454 138,704,702 139,061,109
----------------------------------------------------------------------
- Diluted 135,925,454 139,958,237 139,295,007
======================================================================

NON GAAP Q3
Extra 2008 YoY
Particulars 2007 ordinary (Excluding % to Change
items Extra Rev %
Q308 (a) Ordinary
Items)
----------------------------------------------------------------------
Revenue 662.9 0.0 183.5
----------------------------------------------------------------------
Cost of revenues 432.3 -2.8 1 120.4 65.6% 7.1%
----------------------------------------------------------------------
Depreciation 17.8 0.0 4.3 2.4% -5.8%
----------------------------------------------------------------------
Gross Profit 212.8 2.8 58.7 32.0% 12.1%
----------------------------------------------------------------------
Sales and marketing
expenses 45.8 0.0 13.2 7.2% 19.9%
----------------------------------------------------------------------
General and
administrative
expenses 70.4 0.0 21.2 11.6% 5.7%
----------------------------------------------------------------------
Provision for
doubtful debts and
advances 1.2 0.0 0.6 0.3% -418.1%
----------------------------------------------------------------------
Foreign exchange
(gain) / loss, net (23.4) 0.0 (1.2) -0.6% -84.3%
----------------------------------------------------------------------
Operating income 118.7 2.8 2 24.9 13.6% -14.1%
----------------------------------------------------------------------
Other income /
(expense), net 17.0 8.3 3 3.1 1.7% -14.7%
----------------------------------------------------------------------
Income before
income taxes 135.8 11.0 4 28.0 15.2% -14.2%
----------------------------------------------------------------------
Income taxes 21.8 -7.7 5 3.6 1.9% -28.5%
----------------------------------------------------------------------
Net income/(loss) 114.0 18.7 6 24.4 13.3% -11.6%
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic $ 0.82 0.0 $ 0.18
----------------------------------------------------------------------
- Diluted $ 0.82 0.0 $ 0.18
----------------------------------------------------------------------
Weighted average
number of common
shares used in
computing earnings
per share
----------------------------------------------------------------------
- Basic 138,660,785 135,925,454
----------------------------------------------------------------------
- Diluted 139,569,933 135,925,454
======================================================================

(a) Certain prior years' tax review is concluded by IRS and has
resulted in net reversal leading to an increase in Q3 2008 Gross
Profit, Operating Income and Net Income.

1 - Due to write back of provision for payroll taxes of earlier years
2 - Impact of 1
3 - Due to write back of provision for interest/ penalties of earlier
years
4 - Impact of 2 and 3
5 - Due to write back of provision for income tax of earlier years
6 - Impact of 4 and 5
*T

Financial Statements Analysis:

Revenues

Revenues during the quarter were marginally ahead of guidance at
US$ 183.5 million (Rs.8,522.5 million), representing a sequential
increase of 0.5% after (-)1% change due to currency impacts. YoY
revenues up 8.3% increase on YoY basis in US dollar terms.

Gross Margin

Gross Margins were at 33.5% or US$ 61.5 million (Rs.2,857.0
million) against 30.3% or US$ 55.4 million (Rs.2,377.5 million) in the
previous quarter. Gross Profit adjusted for Extra Ordinary Items is at
US$ 58.7 million at 32.0% during the quarter. Improvement in Gross
Margin is on account of Rupee & other currencies depreciation by 1%
and 0.5% on account of other operating efficiencies.

Depreciation and amortization expenses in CGS were US$ 4.9 million
against US$ 5.0 million in Q2 2008 and US$ 4.6 million in Q3 2007.

Selling General and Administrative Expenses (SGA Expenses)

-- Sales and marketing expenses during the quarter were at US$
13.2 million (Rs. 612.0 million) at 7.2% as compared to US$
13.8 million (Rs. 593.2 million) at 7.6% in the previous
quarter. G&A expenses during the quarter were at US$ 21.2
million (Rs.985.9 million) at 11.6% as compared to US$ 19.8
million (Rs.852.0 million) at 10.9% in the previous quarter.
Normalized for one time expense it is in line with previous
quarter at 10.9%.

-- Overall Depreciation and Amortization expenses in SGA remained
unchanged as compared to previous quarter and were US$ 2.1
million for the quarter.

Foreign exchange gain/loss

The revaluation and mark to market foreign exchange gain for the
quarter US$ 1.2 million (Rs. 54.5 million) as compared to foreign
exchange loss of US$ 4.7 million (Rs.201.6 million) in the previous
quarter. The change was largely due to sharp decline in forward
premia's during the quarter.

The quarter end rate for debtor's revaluation was
Rs.46.95.Outstanding contracts at the end of Q308 were about US$
443.24 million contracted in the range of Rs.39.3 to Rs.47.

Other Income

For Q3 CY2008, other income (including interest and dividend
income net of interest expenses, profit/loss on sale of investments
and other miscellaneous income) stood at 6.2% or US$ 11.4 million
(Rs.527.9 million).

Other Income adjusted for Extra ordinary items at US$ 3.1 million
at 1.7% during the quarter lower than $11.3 million during previous
quarter due to cyclical change on account of Fixed maturity
investments.

Profit before Tax

PBT was up 38.7% sequentially at US$ 39.0 million (Rs. 1,811.8
million) against US$ 28.1 million (Rs. 1,206.9 million) in the
previous quarter. PBT adjusted for Extra Ordinary items at US$ 28.0
million, representing sequential decrease of 0.5%.

Income Taxes

Income tax for the quarter was at US$ (-) 4.1 million (Rs. 190.1
million). Income Tax after adjustment of Extra Ordinary items is at US
$ 3.6 million at an effective tax rate of 13%.

Net Income

Net income for the quarter at 23.5% was US$ 43.1 million
(Rs.2,001.9 million) against US$ 24.2 million (Rs.1,037.2 million) at
13.2% in the previous quarter. Net Income adjusted for Extra Ordinary
items at US$ 24.4 million at 13.3% for the quarter.

Balance Sheet and Cash Flow changes

During the quarter, against net income of US$ 43.1 million
(Rs.2,001.9 million), cash from operating activities was at US$ 27.1
million (Rs. 1,261.0 million) net of changes in current assets and
liabilities of US $ (-) 26.9 million and non cash charges of US$ 10.9
million. These non cash charges comprise of depreciation and
amortization including compensation cost of US$ 7.9 million, and other
charges US$ 3.0 million.

Net cash from investing activities was US$ 22.4 million
(Rs.1,042.2 million) including capital expenditure of US$ 6.0 million
(Rs.279.9 million); net proceeds from sale of investments of US$ 28.5
million (Rs. 1,322.1 million).

Net Cash outflow on financing activities was US$ 54.8 million
(Rs.2,547.2 million) comprising of payment of buy back of shares of
US$ 43.3 million (Rs. 2,012.5 million) and dividend on common shares
of US$ 11.4 million (Rs.531.4 million) and US$ 0.1 (Rs.3.2 million) on
other financing activities. Net of translations change of $ 31.7
million , over all cash and cash equivalents (including short term
investments) were at US$ 278.6 million (Rs.12,938.7 million), compared
to US$ 343.9 million (Rs.14,762.8 million) at close of Q2 2008.

Receivables at the end of Q3 2008 were at US$ 137.0 million as
compared to US$ 116.5 million at the end of Q2 2008. Number of days
outstanding (Including Unbilled) for current quarter were 89 days
similar to previous quarter.

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Figures in Million INR except EPS and Share Data

----------------------------------------------------------------------
CONSOLIDATED STATEMENT OF INCOME : BASED ON CONVENIENCE TRANSLATION
For the quarter / period ended
----------------------------------------------------------------------
Particulars Sep 30 2008 Sep 30 2007 Jun 30 2008 2007
----------------------------------------------------------------------
Exchange rate$1 = INR 46.45 39.75 42.93 39.41
Revenues 8,522.5 6,735.7 7,837.1 26,125.3
Cost of revenues 5,463.5 4,470.1 5,267.0 17,035.3
Depreciation 202.0 183.6 192.5 702.5
Gross Profit 2,857.0 2,082.0 2,377.5 8,387.5
Sales and marketing
expenses 612.0 436.8 593.2 1,805.5
General and
administrative
expenses 985.9 798.1 852.0 2,776.3
Provision for doubtful
debts and advances 29.7 (8.0) 10.0 46.6
Foreign exchange
(gain) / loss, net (54.5) (296.3) 201.6 (920.3)
Operating income 1,283.9 1,151.4 720.7 4,679.4
Other income /
(expense), net 527.9 144.3 486.2 670.9
Income before income
taxes 1,811.8 1,295.8 1,206.9 5,350.3
Income taxes (190.1) 198.0 169.7 858.5
Net income/(loss) 2,001.9 1,097.8 1,037.2 4,491.8
Earning per share
- Basic 14.73 7.91 7.46 32.39
- Diluted 14.73 7.84 7.45 32.18
Weighted average
number of common
shares used in
computing earnings
per share
- Basic 135,925,454 138,704,702 139,061,109 138,660,785
- Diluted 135,925,454 139,958,237 139,295,007 139,569,933
*T

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
third quarter ended September 30, 2008.

- 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 7 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 (BSE: PATNI COMPUT) (NSE: PATNI)
(NYSE: PTI) is a global provider of IT Services and business solutions
servicing Global 2000 clients. Patni services its clients through its
industry-focused practices, including banking, financial services and
insurance (BFSI); manufacturing, retail and distribution (MRD); life
sciences; communications, media and utilities (CMU); and its
technology-focused practices.

With an employee strength of over 15,000; multiple global delivery
centers spread across 11 cities worldwide; 23 international offices
across the Americas, Europe and Asia-Pacific; Patni has registered
revenues of US$ 663 million for the year 2007.

Patni's service offerings include application development and
maintenance, enterprise application solutions, 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: 2000 certified and SEI-CMMI Level 5
(V 1.2) organization, assessed enterprise wide at P-CMM Level 3. 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.

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PATNI COMPUTER SYSTEMS LIMITED

FINANCIAL AND OPERATIONS INFORMATION FOR THE
THIRD QUARTER ENDED SEP 30, 2008

October 23, 2008

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 Sep 30, 2008.

-- 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.
*T

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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 5
B2 Consolidated Balance Sheet 5
B3 Consolidated Cash Flow Statement 6

C Reconciliation between US GAAP and Indian
GAAP Income Statement 6
-----------------------------------------

D US GAAP Financials Based on Convenience
Translation
-----------------------------------------
D1 Consolidated Statement of Income 7
D2 Consolidated Balance Sheet 7
D3 Consolidated Cash Flow Statement 8

E Operational and Analytical Information
-----------------------------------------
E1 Revenue Analysis 8
E2 Revenue-Client Metrics 9
E3 Revenue Mix and Utlisation 9
E4 Employee Metrics 9
E5 Infrastructure 10
E6 Currency Rates 10
*T

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A1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME - US GAAP (US$ '000)
For the quarter / period ended
----------------------------------------------------------------------

YoY QoQ
Particulars Sep 30 2008 Sep 30 2007 Change Jun 30 2008 Change
% %
----------------------------------------------------------------------
Revenue 183,477 169,452 8.3% 182,555 0.5%
----------------------------------------------------------------------
Cost of
revenues 117,621 112,456 4.6% 122,689 -4.1%
----------------------------------------------------------------------
Depreciation 4,349 4,619 -5.8% 4,484 -3.0%
----------------------------------------------------------------------
Gross Profit 61,507 52,377 17.4% 55,382 11.1%
----------------------------------------------------------------------
Sales and
marketing
expenses 13,176 10,988 19.9% 13,819 -4.7%
----------------------------------------------------------------------
General and
administrative
expenses 21,225 20,078 5.7% 19,847 6.9%
----------------------------------------------------------------------
Provision for
doubtful debts
and advances 639 (201) -418.1% 232 175.1%
----------------------------------------------------------------------
Foreign
exchange
(gain) / loss,
net (1,173) (7,455) -84.3% 4,696 -125.0%
----------------------------------------------------------------------
Operating
income 27,640 28,967 -4.6% 16,788 64.6%
----------------------------------------------------------------------
Other income /
(expense), net 11,362 3,631 212.9% 11,325 0.3%
----------------------------------------------------------------------
Income before
income taxes 39,002 32,598 19.6% 28,113 38.7%
----------------------------------------------------------------------
Income taxes (4,093) 4,981 -182.2% 3,954 -203.5%
----------------------------------------------------------------------
Net
income/(loss) 43,095 27,617 56.0% 24,159 78.4%
----------------------------------------------------------------------
Earning per
share
----------------------------------------------------------------------
- Basic $ 0.32 $ 0.20 59.2% $ 0.17 82.5%
----------------------------------------------------------------------
- Diluted $ 0.32 $ 0.20 60.7% $ 0.17 82.8%
----------------------------------------------------------------------
Weighted
average number
of common
shares used in
computing
earnings per
share
----------------------------------------------------------------------
- Basic 135,925,454 138,704,702 139,061,109
----------------------------------------------------------------------
- Diluted 135,925,454 139,958,237 139,295,007
======================================================================

NON GAAP Q3
Extra 2008 YoY
Particulars 2007 ordinary (Excluding % to change
items Extra Rev %
Q308 (a) Ordinary
Items)
----------------------------------------------------------------------
Revenue 662,912 183,477 8.3%
----------------------------------------------------------------------
Cost of revenues 432,259 -2,770 1 120,391 65.6% 7.1%
----------------------------------------------------------------------
Depreciation 17,826 4,349 2.4% -5.8%
----------------------------------------------------------------------
Gross Profit 212,827 2,770 58,737 32.0% 12.1%
----------------------------------------------------------------------
Sales and marketing
expenses 45,813 13,176 7.2% 19.9%
----------------------------------------------------------------------
General and
administrative
expenses 70,447 21,225 11.6% 5.7%
----------------------------------------------------------------------
Provision for
doubtful debts and
advances 1,182 639 0.3% -418.1%
----------------------------------------------------------------------
Foreign exchange
(gain) / loss, net (23,351) (1,173) -0.6% -84.3%
----------------------------------------------------------------------
Operating income 118,736 2,770 2 24,870 13.6% -14.1%
----------------------------------------------------------------------
Other income /
(expense), net 17,024 8,264 3 3,098 1.7% -14.7%
----------------------------------------------------------------------
Income before
income taxes 135,760 11,034 4 27,968 15.2% -14.2%
----------------------------------------------------------------------
Income taxes 21,784 -7,654 5 3,561 1.9% -28.5%
----------------------------------------------------------------------
Net income/(loss) 113,976 18,688 6 24,407 13.3% -11.6%
----------------------------------------------------------------------
Earning per share
----------------------------------------------------------------------
- Basic $ 0.82 $ 0.18
----------------------------------------------------------------------
- Diluted $ 0.82 $ 0.18
----------------------------------------------------------------------
Weighted average
number of common
shares used in
computing earnings
per share
----------------------------------------------------------------------
- Basic 138,660,785 135,925,454
----------------------------------------------------------------------
- Diluted 139,569,933 135,925,454
======================================================================

(a) Certain prior years' tax review is concluded by IRS and has
resulted in net reversal leading to an increase in Q3 2008 Gross
Profit, Operating Income and Net Income.

1 - Due to write back of provision for payroll taxes of earlier years
2 - Impact of 1
3 - Due to write back of provision for interest/ penalties of earlier
years
4 - Impact of 2 and 3
5 - Due to write back of provision for income tax of earlier years
6 - Impact of 4 and 5
*T

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A2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (US$ '000)
----------------------------------------------------------------------
Particulars As on As on As on
30-Sep-08 30-Jun-08 30-Sep-07
----------------------------------------------------------------------
Assets
Total current assets 475,252 542,088 537,987
Goodwill 67,125 66,683 67,053
Intangible assets, net 28,383 29,642 32,946
Property, plant, and equipment, net 157,483 172,967 166,871
Other assets 38,055 42,892 27,869
Total assets 766,298 854,272 832,726
Liabilities
Total current liabilities 150,773 159,112 172,459
Capital lease obligations excluding
current installments 237 298 273
Other liabilities 29,054 50,980 10,331
Total liabilities 180,064 210,390 183,063
Total shareholders' equity 586,234 643,882 649,663
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 766,298 854,272 832,726
======================================================================
*T

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A3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (US$ '000)
----------------------------------------------------------------------
Particulars Sep 30 Jun 30 Sep 30
2008 2008 2007 2007
----------------------------------------------------------------------
Net cash provided by operating
activities 27,147 54,956 39,839 111,272
Net cash used in investing
activities 22,437 (31,800) (57,906) (130,036)
Capital expenditure, net (6,026) (13,049) (34,985) (61,333)
Investment in securities, net 28,463 (18,751) (1,668) (14,774)
Investment in subsidiary incl tax
benefit on incentive stock
option of Patni Telecom - - (21,253) (53,929)
Net cash provided / (used) in
financing activities (54,837) (70) (1,222) (8,682)
Others (69) (74) (107) (430)
Common shares issued / (Buy Back) (43,327) 4 643 3,681
Dividend on common shares (11,441) (0) (1,758) (11,933)
Net increase / (decrease) in cash
and equivalents (5,253) 23,086 (19,289) (27,446)
Effect of exchange rate changes
on cash and equivalents (11,122) (6,959) 2,280 13,562
Cash and equivalents at the
beginning of the period 55,111 38,984 61,822 46,510
----------------------------------------------------------------------
Cash and equivalents at the end
of the period 38,736 55,111 44,813 32,626
======================================================================
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B1) AUDITED CONSOLIDATED STATEMENT OF INCOME - INDIAN GAAP (RS. '000)
----------------------------------------------------------------------
For the quarter / period ended
----------------------------------------------------------------------

YoY
Particulars Sep 30 2008 Sep 30 2007 Change
%
----------------------------------------------------------------------
Sales and service income 7,996,102 6,747,357 18.5%
Other income 531,898 343,078 55.0%
Total income 8,528,000 7,090,435 20.3%
Staff costs 4,626,485 4,017,333 15.2%
Selling, general and administration
expenses 2,146,166 1,802,935 19.0%
Interest 26,806 39,851 -32.7%
Total expenditure 6,799,457 5,860,119 16.0%
Net profit before tax and
adjustments 1,728,543 1,230,316 40.5%
Provision for taxation (73,738) 236,752 -131.1%
Profit/(loss) for the year after
taxation 1,802,281 993,564 81.4%
Profit and loss account, brought
forward 16,553,144 13,459,475 23.0%
Add: Adjustment on account of
Employee Benefits - (57,547)
Amount available for appropriation 18,355,425 14,395,492 27.5%
Proposed dividend on equity shares - -
Dividend on equity shares of
subsidiary -
Dividend tax - -
Transfer to general reserve
Profit and loss account, carried
forward 18,355,425 14,395,492 27.5%
Earning per share (Rs. per equity
share of Rs. 2 each)
- Basic 13.26 7.16 85.1%
- Diluted 13.24 7.09 86.9%
Weighted average number of common
shares used in computing earnings
per share
---------------------------------
- Basic 135,925,454 138,704,702
---------------------------------
- Diluted 136,108,038 140,220,477
======================================================================

QoQ
Particulars Jun 30 2008 Change 2007
%
----------------------------------------------------------------------
Sales and service income 7,673,051 4.2% 26,911,455
Other income 233,457 127.8% 1,690,074
Total income 7,906,508 7.9% 28,601,529
Staff costs 4,488,811 3.1% 15,389,630
Selling, general and administration
expenses 2,137,597 0.4% 7,220,011
Interest 32,410 -17.3% 147,225
Total expenditure 6,658,818 2.1% 22,756,866
Net profit before tax and adjustments 1,247,690 38.5% 5,844,663
Provision for taxation 56,420 -230.7% 1,008,401
Profit/(loss) for the year after
taxation 1,191,270 51.3% 4,836,262
Profit and loss account, brought
forward 15,362,059 7.8% 10,646,309
Add: Adjustment on account of
Employee Benefits - (32,606)
Amount available for appropriation 16,553,329 10.9% 15,449,964
Proposed dividend on equity shares - 418,173
Dividend on equity shares of
subsidiary 158 -
Dividend tax 27 83,389
Transfer to general reserve - 387,518
Profit and loss account, carried
forward 16,553,144 10.9% 14,560,884
Earning per share (Rs. per equity
share of Rs. 2 each)
- Basic 8.57 54.8% 34.88
- Diluted 8.55 54.8% 34.54
Weighted average number of common
shares used in computing earnings
per share
---------------------------------
- Basic 139,061,109 138,660,785
---------------------------------
- Diluted 139,296,098 140,036,922
======================================================================
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B2) AUDITED CONSOLIDATED BALANCE SHEET - INDIAN GAAP (RS. '000)
----------------------------------------------------------------------
Particulars As on As on As on
30-Sep-08 30-Jun-08 30-Sep-07
----------------------------------------------------------------------
Assets
Current assets, loans and advances 11,556,213 11,262,210 10,294,568
Goodwill 4,825,306 4,553,256 4,324,856
Fixed assets(Net of Depreciation) 9,028,214 9,030,885 8,261,362
Investments 11,113,595 12,368,013 10,946,327
Deferred tax asset, net 634,982 765,339 476,737
Total assets 37,158,310 37,979,703 34,303,850
Liabilities
Current liabilities and provisions 8,197,901 8,855,433 7,379,662
Secured loans 20,771 23,252 21,432
Deferred tax liability, net 129,265 31,477 59,863
Total liabilities 8,347,937 8,910,162 7,460,957
Total shareholders' equity 28,810,373 29,069,541 26,842,893
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 37,158,310 37,979,703 34,303,850
======================================================================
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B3) AUDITED CONSOLIDATED CASH FLOW STATEMENT - INDIAN GAAP (RS '000)
----------------------------------------------------------------------
Particulars Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------

Cash flows from /
(used in) operating
activities (A) 903,983 2,247,977 1,454,579 4,119,867

Cash flows used in
investing activities
(B) 1,125,514 (1,216,196) (2,213,583) (4,821,651)

Cash flows from /
(used in) from
financing activities
(C) (2,466,025) 231 (42,205) (363,378)

Effect of changes in
exchange rates (D) (115,258) (225,446) 69,785 290,421

----------------------------------------------------------------------
Net decrease in cash
and cash equivalents
during the period
(A+B+C+D) (551,786) 806,566 (731,424) (774,741)
----------------------------------------------------------------------

----------------------------------------------------------------------
Cash and cash
equivalents at the
beginning of the
period 2,370,894 1,564,329 2,517,632 2,060,598
----------------------------------------------------------------------

----------------------------------------------------------------------
Cash and cash
equivalents at the
end of the period 1,819,108 2,370,895 1,786,208 1,285,857
======================================================================
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C) Reconcilation of Income as per Indian GAAP and US GAAP(RS. '000)
----------------------------------------------------------------------
Particulars Sep 30 Sep 30 Jun 30
2008 2007 2008 2007
----------------------------------------------------------------------

Consolidated net income as
per Indian GAAP 1,802,281 993,564 1,191,270 4,836,262
Income taxes 45,517 23,351 (116,804) 65,622
Foreign currency
differences 8,040 161,403 2,942 114,235
Employee retirement
benefits (8,896) 14,191 (15,070) (77,408)
ESOP related Compensation
Cost (42,729) (51,897) (40,909) (192,446)
Amortisation of
Intangibles, arising on
Business acquisition (17,614) (20,200) (16,729) (45,926)
Others (3,463) (1,277) 914 10,379
Total (19,145) 125,571 (185,656) (125,544)

----------------------------------------------------------------------
Consolidated net income as
per US GAAP 1,783,136 1,119,135 1,005,614 4,710,718
======================================================================
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D1) UNAUDITED CONSOLIDATED STATEMENT OF INCOME (RS. '000): BASED ON
CONVENIENCE TRANSLATION
For the quarter / period ended
----------------------------------------------------------------------
Particulars Sep 30 2008 Sep 30 2007 Jun 30 2008 2007
----------------------------------------------------------------------
Exchange rate$1 =
INR 46.45 39.75 42.93 39.41
Revenues 8,522,500 6,735,698 7,837,082 26,125,349
Cost of revenues 5,463,483 4,470,113 5,267,018 17,035,344
Depreciation 202,032 183,586 192,514 702,511
Gross Profit 2,856,985 2,081,999 2,377,550 8,387,494
Sales and marketing
expenses 612,007 436,793 593,239 1,805,475
General and
administrative
expenses 985,903 798,084 852,004 2,776,338
Provision for
doubtful debts and
advances 29,682 (7,986) 9,968 46,573
Foreign exchange
(gain ) / loss,
net (54,500) (296,336) 201,589 (920,258)
Operating income 1,283,892 1,151,443 720,750 4,679,366
Other income /
(expense), net 527,894 144,335 486,200 670,916
Income before
income taxes 1,811,787 1,295,779 1,206,950 5,350,282
Income taxes (190,136) 198,012 169,700 858,506
Net income/(loss) 2,001,923 1,097,766 1,037,250 4,491,776
Earning per share
- Basic 14.73 7.91 7.46 32.39
- Diluted 14.73 7.84 7.45 32.18
Weighted average
number of common
shares used in
computing earnings
per share
- Basic 135,925,454 138,704,702 139,061,109 138,660,785
- Diluted 135,925,454 139,958,237 139,295,007 139,569,933
======================================================================
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D2) UNAUDITED CONSOLIDATED BALANCE SHEET USGAAP (RS. '000): BASED ON
CONVENIENCE TRANSLATION
----------------------------------------------------------------------
Particulars As on As on As on
30-Sep-08 30-Jun-08 30-Sep-07
----------------------------------------------------------------------
Exchange rate$1 = INR 46.45 42.93 39.75
Assets
Total current assets 22,075,459 23,271,835 21,384,977
Goodwill 3,117,957 2,862,709 2,665,368
Intangible assets, net 1,318,393 1,272,496 1,309,587
Property, plant, and equipment, net 7,315,093 7,425,484 6,633,132
Other assets 1,767,662 1,841,359 1,107,802
Total assets 35,594,564 36,673,883 33,100,866
Liabilities
Total current liabilities 7,003,402 6,830,697 6,855,263
Capital lease obligations excl.
installments 11,020 12,774 10,839
Other liabilities 1,349,563 2,188,567 410,641
Total liabilities 8,363,985 9,032,038 7,276,744
Total shareholders' equity 27,230,579 27,641,845 25,824,123
----------------------------------------------------------------------
Total liabilities & shareholders'
equity 35,594,564 36,673,883 33,100,866
======================================================================
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D3) UNAUDITED CONSOLIDATED CASH FLOW STATEMENT USGAAP (RS '000): BASED
ON CONVENIENCE TRANSLATION
----------------------------------------------------------------------
Particulars Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Exchange rate $1 = INR 46.45 42.93 39.75 39.41
Net cash provided by
operating activities 1,260,973 2,359,259 1,583,618 4,385,238
Net cash used in
investing activities 1,042,203 (1,365,182) (2,301,768) (5,124,701)
Capital expenditure,
net (279,897) (560,189) (1,390,643) (2,417,143)
Investment in
securities, net 1,322,100 (804,993) (66,312) (582,226)
Investment in
subsidiary, net of
cash acquired - - (844,813) (2,125,332)
Net cash provided /
(used) in financing
activities (2,547,184) (3,006) (48,591) (342,167)
Others (3,225) (3,192) (4,249) (16,946)
Common shares issued,
net of expenses (2,012,541) 188 25,553 145,074
Dividend on common
shares (531,418) (1) (69,895) (470,295)
Net increase /
(decrease) in cash
and equivalents (244,008) 991,071 (766,741) (1,081,630)
Effect of exchange
rate changes on cash
and equivalents (516,610) (298,763) 90,621 534,461
Cash and equivalents
at the beginning of
the period 2,559,912 1,673,596 2,457,427 1,832,959
Cash and equivalents
at the end of the
period 1,799,294 2,365,904 1,781,306 1,285,790
======================================================================
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E1 ) REVENUE ANALYSIS
----------------------------------------------------------------------
Revenue By Geographical
Segments Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Americas 76.7% 76.1% 79.1% 79.0%
EMEA 17.5% 18.7% 15.8% 16.1%
APAC 5.8% 5.1% 5.1% 4.9%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
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Revenue by Industry
Verticals Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Insurance 25.1% 23.3% 22.9% 23.6%
Manufacturing 25.5% 24.9% 25.9% 23.7%
Financial Services 12.5% 12.8% 14.2% 14.1%
Communications,Media &
Entertainment 12.5% 14.2% 12.1% 13.5%
Growth Industries 9.2% 9.3% 8.4% 8.3%
Product Engineering
Services 15.2% 15.6% 16.5% 16.8%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
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Revenue by Service
Offerings Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Application Development &
Maintenance 64.2% 61.9% 65.0% 64.9%
Package software
implementation 15.0% 16.1% 13.5% 13.7%
Product Engineering
Services 10.8% 11.4% 11.1% 11.5%
Infrastructure Management
Services 4.7% 4.8% 5.4% 5.4%
Business Process
Outsourcing 5.2% 5.8% 5.0% 4.5%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
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Revenue by Project Type Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Time and Material 63.2% 65.2% 68.6% 67.6%
Fixed Price (including
Fixed Price SLA) 36.8% 34.8% 31.4% 32.4%
----------------------------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
======================================================================
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E2) CLIENT- REVENUE METRICS
----------------------------------------------------------------------
Particulates Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Top client 10.5% 10.4% 12.8% 11.8%
Top 5 Clients 32.9% 31.5% 35.6% 34.8%
Top 10 Clients 45.3% 44.5% 48.5% 47.3%
Client data
No of $1 million clients 91 87 83 84
No of $5 million clients 30 28 32 31
No of $10 million clients 20 18 13 14
No of $50 million clients 2 2 2 2
No of new clients 27 21 31 119
No. of active Clients 332 336 293 318
% of Repeat Business 94.3% 92.0% 92.4% 92.4%
======================================================================
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E3) REVENUE MIX AND UTILIZATION
Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Efforts
Onsite 28.2% 29.2% 29.7% 30.4%
Offshore 71.8% 70.8% 70.3% 69.6%

Revenue
Onsite 58.0% 60.2% 61.2% 61.0%
Offshore 42.0% 39.8% 38.8% 39.0%

Utilization 75.0% 72.9% 72.5% 72.4%

======================================================================
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E4) EMPLOYEE METRICS
----------------------------------------------------------------------
Sep 30 2008 Jun 30 2008 Sep 30 2007 2007
----------------------------------------------------------------------
Total Employees 14,701 15,044 14,290 14,945
----------------------------------------------------------------------
Offshore 11,662 11,992 11,323 12,011
Onsite 3,039 3,052 2,967 2,934
Total 14,701 15,044 14,290 14,945

Sales & Support Staff 1,511 1,496 1,422 1,447
Net Additions (343) (108) 567 2,141
Attrition (LTM) excluding
BPO 20.2% 21.2% 27.6% 25.1%

----------------------------------------------------------------------
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E5) FACILITIES - INDIA INFRASTRUCTURE (as on Sep 30, 2008)
----------------------------------------------------------------------
Under
Operational (a) Construction/Furnishing
----------------------------------------------------------------------
Location Built Up Area No. of Built Up Area No. of
(Sq ft) Seats (Sq ft) Seats
----------------------------------------------------------------------
Mumbai 183,648 1,742
Navi Mumbai 267,411 3,185
Airoli 462,845 4,186
Pune 307,950 3,313
Gandhinagar 37,000 350
Noida 573,000 4,890
Hyderabad 148,000 1,218
Bangalore 114,300 1,100
Chennai 115,485 865 133,000 1,230
----------------------------------------------------------------------
2,209,639 20,849 133,000 1,230
======================================================================
(a) Owned plus leased
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E6) RUPEE - CURRENCY RATES AGAINST US DOLLAR
----------------------------------------------------------------------
Sep 30 2008 Jun 30 2008 Sep 30 2007
----------------------------------------------------------------------
Rupee
----------------------------------------------------------------------
Period end rate 46.95 43.02 39.84
Period average rate 44.37 41.94 40.39
----------------------------------------------------------------------
Other Currencies (Average Rate)
----------------------------------------------------------------------
AUD 0.89 0.94 0.85
EURO 1.51 1.56 1.37
GBP 1.90 1.97 2.02
YEN 0.06 0.01 0.01
----------------------------------------------------------------------
*T

Investor Relations:
Patni US
Gaurav Agarwal, +1-617-914-8360
investors@patni.com
or
Citigate Dewe Rogerson India
Gavin Desa, +91-22-4007 5037
gavin@cdr-india.com
or
Media Relations:
Patni India
Heena Kanal, +91-22-6693 0500
heena.kanal@patni.com
or
Patni US
Tony Viola, +1-617-354-7424
tony.viola@patni.com

Copyright Business Wire 2008