Syntel Inc has declared the financial results for the three month period ended June 30, 2009.

During the second quarter, the global information technology services and Knowledge Process Outsourcing (KPO) company has recorded a growth of 4% in its total revenue, which stood at $100.1 million (Rs. 481 crore), as against $96.4 million (Rs 464 crore) during the first quarter of the current fiscal.

The company said that its gross margin during the period under review was 48.2% as compared to 41.1% in the prior-year period (710 bps increase).

The company's income from operations came up to 27.4% in the second quarter, as compared to 22.1% in the same period of the last year.

Syntel's net income during the second quarter was $25.1 million or $0.61 per diluted share, as against $17.4 million ($0.42) per diluted share in the prior-year period.

During the same period, Syntel added 3 new customers and two new "Hunting Licenses" or preferred partnership deals, bringing the total number to 96 strategic affiliations.

Syntel has invested around $37M during the last year, and has decided to invest around $25 million in 2009 as it makes growth on building of its SEZ campuses in Pune and Chennai.

Based on existing visibility standards and an exchange rate assumption of Rs 48.7 to the dollar, Syntel is updating 2009 direction from proceeds of $385 million to $415 million and earning per share in the range of $2.12 to $2.42 to revenue of $395 million to $415 million. Keshav R Murugesh, CEO & President of 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. Keshav.

"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."