Patni Computer Systems Limited was incorporated as Patni Computer Systems Private Limited on February 10, 1978. The activities of the Company were computer time rental, the resale of imported computer hardware, and software exports. In 1981, the Company promoted PCS Data Products (Private) Limited for the sale and marketing of computer equipment and hardware maintenance.

In 1987, the Company promoted PCS Data General India, a joint venture with The Data General Corporation, USA, for the manufacture and maintenance of computer hardware. Since 1994, the Company has been entirely focused on IT services & software exports. In 1999, the shares of PCSIL held by the Company and other non-operating assets were de-merged into other group companies and the Company emerged as a focused IT services company.

Patni Computer Systems Limited is a separate entity from PCS Industries Limited, which is a group company. Company come out with Initial Public Offering of 18,724,000 equity shares in the price of Rs 230 per share for a face value of Rs 2 each in 2004. Company has MOU with the Birla Institute of Technology & Science (BITS), Pilani to offer educational programs to Patni employees through the 'BITS off-campus Distance Learning & Collaborative Program's scheme. Company has a strategic alliance with SAP India to jointly work on the SMB market in India. This alliance will enable to work into the high-growth SMB segment.

Products & Services:

Patni Computer Systems is one of the leading global providers of Information Technology services and business solutions. Over 11,000 professionals service clients across diverse industries, from 24 sales offices across the America, Europe and Asia-Pacific, and multiple offshore development centers across 8 cities in India. Company have serviced more than 200 FORTUNE 1000 companies, for over two decades. Company provides its services into areas like Application development & maintenance, Packaged applications, embedded software's, infrastructure management, eBusiness solutions, BPO, RFID, BI & DW, Enterprise integration, verification & validation, process consulting, engineering services, IT governance.

Company provides its services into insurance, finance, retail, manufacturing, telecom, ISV's, product engineering, media & entertainment, energy & utilities, logistics & transportation etc. Company delivers high quality, reliable and cost-effective IT services to its customers globally. It provides world-class technology services by constantly exploring and implementing innovative solutions that drive long-term value to its customers. Company's robust methodologies and processes consolidate decades of software development and maintenance experience in delivering and supporting enterprise applications and products. Company use process frameworks effectively to reduce risk and unpredictability across the software development life cycle and flexibly integrate with client's processes. Its quality systems create strong predictive and diagnostic focus, delivering measurable performance to clients.

It provides monitoring on projects through integrated web based project management and monitoring tools. Company is an ISO 9001:2000 certified organization, assessed enterprise-wide at SEI-CMMI Level 5, SEI-CMM Level 5 and P-CMM Level 3. It has integrated Six Sigma techniques to focus on continuous, measurable process improvement, with powerful analytical tools and sophisticated review processes. Company has a global footprint supported by multiple development centers across key locations in India and sales offices in North America, Europe & UK, and the Asia-Pacific regions.

Recent developments:

In June, company opened a new delivery center in Queretaro, to augment its global delivery capabilities and serve the North American and Latin American markets. The Center will offer Patni's full range of services and solutions covering IT consulting, software development outsourcing, contact center operations and business process outsourcing. These offerings will be provided to customers in the financial services, manufacturing, life sciences, communications, media and entertainment sectors.

Company announced a new solution to complete the lifecycle management of financial data for diversified, global financial institutions. The overnight global reconciliation factory (GRF), offered in conjunction with Patni's operational Fund accounting service (OFA) and financial control and reporting program (FRP) as a suite of solutions, will alleviate the daunting back office reporting requirements that challenge asset management firms.

Valuation:

At current market price, stock is trading at 11.72 P/E multiple of its FY2010 estimated EPS. We recommend investors to buy "Patni Computer Systems Limited" with medium to long- term investment prospective.