Syntel, Inc., a. international IT services and Knowledge Process Outsourcing (KPO) firm, today declared financial results for the three month period ended June 30, 2009.

The company said that its total revenue during the second quarter surged 4% to $100.1 million (Rs 481 crore), as against $96.4 million (Rs 464 crore) during the first quarter of the current fiscal and decreased 3% compared to $103.4 million (Rs 497 crore) in the prior year period.

Syntel's gross margin stood at 48.2% during the quarter under review (Q2) as compared to 41.1% in the prior-year period.

The company's income from operations went up to 27.4% in the second quarter, compared to 22.1% in the prior-year period (530 bps increase).

Net income during the second quarter was $25.1 million ($0.61 per diluted share) as against $17.4 million ($0.42 per diluted share) in the corresponding period of the last year.

During the quarter under review, Syntel added 3 new clients and two new "Hunting Licenses" or preferred partnership deals, bringing the total number to 96 strategic relationships.

Syntel has invested around $37M during the last year (2008), and has decided to invest over $25 million in the current year as it makes progress on construction of its SEZ campuses in Pune and Chennai.

Based on existing visibility levels and an exchange rate assumption of 48.7 rupees to the dollar, Syntel is updating 2009 direction from revenue of $385 million to $415 million and EPS in the range of $2.12 to $2.42 to revenue of $395 million to $415 million and EPS in the range of $2.40 to $2.50.

Mr. Keshav R Murugesh, Chief Executive Officer & President, Syntel said, "Syntel was encouraged by improved stabilization in the marketplace and the increasingly positive discussions initiated with our clients during the quarter."

"While discretionary projects remain sidelined, customers are beginning to once again look at cost reduction initiatives which are aligned with their longer-term strategic objectives," Mr. Murugesh added.

"The timing of new project starts and changes in the marketplace are uncertain going forward. However, based on today's economic environment and our current visibility levels, we believe that the second quarter revenue run-rate represents a minimum level for the balance of 2009. Syntel will continue to focus on driving key investment initiatives and proactive cost management in the second half of the year with the objective of properly positioning the company for long-term sustainable growth."