Patni’s margins suffer in limbo period

Perhaps not surprisingly under the circumstances, soon-to-be-acquired Patni, the smallest of the India-based ‘majors’, suffered another margin hiccup in Q1 (to 31st March). Though headline revenues grew by 10% yoy to $190m (+4% qoq), operating margins were over 4 points lower yoy and over two points lower qoq, at 16.8%. Meanwhile, ‘new owner’ iGate (see iGate ready for heavy lifting) recently raised $770m in loan notes to help fund the $1.2b acquisition.