iGate Patni Deal

Open Source Financial Model

Contact
Anil Bains
anil@edupristine.com
+91 9619673853
Paramdeep Singh
paramdeep@edupristine.com
+91 9892980608
Pawan Prabhat
pawan@eneev.com
+91 9867625422
Special Thanks to:
Kushal Bhagat
kushal.bhagat@gmail.com
+91 9717483505

Neev Knowledge Management - Pristine

www.edupristine.com
info@edupristine.com

+91 22 3215 6191

+91 8080 00 55 33
Pristine is India's largest authorized training provider for CFA , FRM , PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.

Model

anagement - Pristine

odeling. It has
n all the major Indian

Patni iGate Deal,one of the largest deal in the Indian IT domain, has generated enormous interest in the investor
community (both retail and institutional)throughout world. Many potential investors want a financial model in MS
Excel which can help them in a thorough analysis of the company. Creating such models have always been a timetaking and daunting exercise.
Pristine has created an integrated valuation model based on publically available information. It is available as an opensource model for any user. Kindly note that this model is meant for information purpose only.
The complete structure of the model and formulas, linkages etc. have been kept open to allow for any modification on
the part of the user.
Pristine conducts extensive trainings for financial modeling in MS Excel. These trainings are targeted towards
investors/ professionals who are looking for a career in finance (Investment Banking, PE, Broking, Equity Research,
etc.). At the completion of the trainings, the participants should be able to create models like these.
For more information you can contact the authors or Pristine.

Neev Knowledge Management - Pristine

www.edupristine.com
info@edupristine.com
Pristine is India's largest authorized training provider for CFA, FRM, PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.

rest in the investor

ncial model in MS
ve always been a time-

t is available as an open-

w for any modification on

targeted towards
king, Equity Research,
hese.

anagement - Pristine

odeling. It has
n all the major Indian

Assumption Sheet
Currency to be Used:
Exchange Rate (INR/USD)

USD
45
FY 06
iGate

Acquirer-Target Combinations
Acquirer Code Name
Target Code Name
Equity Data
Closing Price Date
Share Price
Basic Shares Outstanding
Options Outstanding
Wtd-Avg Option Strike Price
Convertibles Dilution
Marginal Tax Rate
Target OwnerShip

FY 07
Patni

iGate
Patni
iGate
1-Feb-11
706
55
1
30%

Patni
1-Feb-11
466
128
3
34%
63%

Financing Cases- 2. What mix you'll pay?

Financing Case Displayed on This Sheet:
% Financed in Stock
% Financed in Cash
Pre-Tax Cost of New Debt
Pre-Tax Opportunity Cost of Cash
Existing Debt to be Refinanced (Co Sheet Ccy)
Current Pre-Tax Interest Rate
Balance Sheet Data
Cash and Cash Equivalents
Total Debt
Non-Controlling Interest (Minority Interest)
Preferred Stock
Book Equity Value
Drivers and Assumptions
Purchase Price Drivers
Initial Premium to Market Price
Incremental Increase in Premium
Existing Cash Used
Pro-Forma Min Cash Balance
Amount of Acquirer Cash Available
% of Acquirer's Available Cash Used
Target Pro-Forma Min Cash Balance
Amount of Target Cash Available
% of Available Cash Used
Pre-Tax Opportunity Cost of Cash
Target Debt Refinanced
Existing Target Debt to be Refinanced
Current Pre-Tax Interest Rate
Financing Fees
Financing Fees as % of Debt Raised

Case 3
40%
60%
11%
5%
11%

5%
11%

1,330
47
8,609

1,040
9
32,037

0%
10%
1,330
17%
1,040
100%
5%

1,040
100%
5%

11%

11%

1%

Life of Debt (in Years)

Years

Transaction (Advisory) Fees

Transaction Fees

Pre-Tax Synergies
Pre-Tax Synergies-2010
Pre-Tax Synergies-2011
Pre-Tax Synergies-2012

2010E
2011E
2012E

Net Income
Net Income-Actual
Net Income-Estimate
Net Income-Estimate
Net Income-Estimate

2010E
2011E
2012E

1,286
2,345
2,235
2,095

5,427
5,960
6,853
7,449

Diluted Weighted Average Shares Outstanding

Diluted-WASO Actual
Diluted-WASO Estimate
Diluted-WASO Estimate
Diluted-WASO Estimate

2010E
2011E
2012E

56
56
56
56

131
131
131
131

Diluted Earning Per Share

Diluted Earning Per Share-Actual
Diluted Earning Per Share-Estimate
Diluted Earning Per Share-Estimate
Diluted Earning Per Share-Estimate

2010E
2011E
2012E

23
42
40
37

41
46
52
57

Revenue
Revenue - Actual
Revenue - Estimate
Revenue - Estimate
Revenue - Estimate

2009
2010E
2011E
2012E

8,689
8,547
7,974
7,642

17,349
19,083
20,992
23,091

EBITDA
EBITDA - Actual
EBITDA - Estimate
EBITDA - Estimate
EBITDA - Estimate

2009
2010E
2011E
2012E

1,799
2,564
2,451
2,320

12,518
12,285
13,131
14,559

Gross Interest Expense

Interest Expense - Actual
Interest Expense - Estimate
Interest Expense - Estimate
Interest Expense - Estimate

2009
2010E
2011E
2012E

2
2
2
2

67
67
67
67

FY 08

Case 1
100%
0%

FY 09

FY 10

FY 11

FY 12

Case 2
50%
50%

Financing Cases
Case 3
40%
60%

Case 4
20%
80%

Case 5
0%
100%

Step-1: What price do you pay and Ownership you get?

Price Column
Premium to Market Price

1
-,

2
8%

Purchase Price Per Share

Equity Consideration - Basic
Equity Consid. - Options Roll-over
Equity Consid. - Convertibles Dilution
Equity Consideration - Diluted

466
59,773
1,223
60,996

503
64,555
1,321
65,876

Enterprise Value

59,965

64,845

33.9
0.7
34.6

36.6
0.7
37.3

38%

40%

0.66
5

0.71
5

New Shares Issued - Basic

Additional Shares from Dilution
New Shares - Convertibles Dilution
New Shares - Diluted
Target's Ownership
Analysis
Exchange Ratio
Multiple of LTM EBITDA (EV/EBITDA)

3
20%

4
30%

5
40%

6
50%

559
71,728
1,467
73,195

606
77,705
1,590
79,295

652
83,682
1,712
85,394

699
89,660
1,834
91,494

72,164

78,264

84,363

90,463

40.6
0.8
41.5

44.0
0.9
44.9

47.4
1.0
48.4

50.8
1.0
51.8

43%

45%

46%

48%

0.79
6

0.86
6

0.92
7

0.99
7

Price vs Ownershi
50%
45%
40%
35%
30%
466

503

559

Price vs Ownership

559

606
Price

652

699

Step-2: What mix of Debt, Equity & Cash you'll pay?

Price Column
Premium to Market Price

1
-,

2
8%

35,864
734
36,598
(226)
(1,040)
35,331
357
35,688
35,688

38,733
792
39,525
(226)
(1,040)
38,259
386
38,645
38,645

Incremental Interest Expense

Pre-Tax Interest Expense on New Debt
Current Pre-tax Interest Expense on Retired Debt
Loss of Interest Income
Pro-Forma Incremental Pre-Tax Interest Expense

3,926
63
3,989

4,251
63
4,314

Goodwill:Excess of Purchase Price Over Book Equity

28,958

33,838

Merger Costs
Amortization of Capitalized Financing Fees
Incremental After-Tax Interest Expense
Total After-Tax Merger Costs

(50)
(2,792)
(2,842)

(54)
(3,020)
(3,074)

Cash Required to Finance Transaction

Equity Consideration - Basic
Equity Consideration - Liquidation of Options
Equity Consideration - Convertibles Dilution
Transaction Fees
Target Debt Refinanced
Cash Required to Finance Transaction
Amount of Acquirer Existing Cash Used
Amount of Target Existing Cash Used
New Debt Required
Financing Fees
New Debt Issued
Existing Target Debt Retired
Pro-Forma Incremental Debt

3
20%

4
30%

5
40%

6
50%

43,037
880
43,917
(226)
(1,040)
42,650
431
43,081
43,081

46,623
954
47,577
(226)
(1,040)
46,310
468
46,778
46,778

50,209
1,027
51,237
(226)
(1,040)
49,970
505
50,475
50,475

53,796
1,100
54,896
(226)
(1,040)
53,630
542
54,171
54,171

Price vs Cash and

100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
466

503

559
Price

4,739
63
4,802

5,146
63
5,209

5,552
63
5,616

5,959
63
6,022

41,158

47,257

53,357

59,456

(60)
(3,362)
(3,422)

(65)
(3,646)
(3,712)

(71)
(3,931)
(4,002)

(76)
(4,216)
(4,291)

ice vs Cash and Equity

Equity
Consideration Diluted

Cash Required
to Finance
Transaction
606
Price

652

699

Step-3: What is the impact on your company?

Price Column
Premium to Market Price

1
-,

2
8%

2010E
2011E
2012E

5,463
6,246
6,702

5,231
6,014
6,470

2010E
2011E
2012E

91
91
91

93
93
93

2010E
2011E
2012E

60.4
69.0
74.1

56.1
64.5
69.4

EPS
Pro-Forma Net Income

Pro-Forma Diluted WASO

Pro-Forma Diluted EPS (Rs)

3
20%

4
30%

5
40%

6
50%

Price vs EPS and W

120.3
4,883
5,666
6,123

4,594
5,376
5,833

4,304
5,086
5,543

4,014
4,797
5,253

97
97
97

101
101
101

104
104
104

108
108
108

50.1
58.2
62.8

45.5
53.3
57.8

41.3
48.8
53.1

37.2
44.5
48.7

100.3
80.3
60.3
40.3
20.3
0.3
466

503

559

606
Price

ce vs EPS and WASO

Pro-Forma
Diluted WASO
Pro-Forma
Diluted EPS
(Rs)
606
Price

652

699

Step-4: Deal is Accretive or Dilutive?

Price Column
Premium to Market Price

1
-,

2
8%

2010E
2011E
2012E

44%
73%
98%

34%
61%
85%

2010E
2011E
2012E

(2,385)
(3,757)
(4,733)

(1,888)
(3,268)
(4,254)

2010E
2011E
2012E

-27%
-43%
-54%

-22%
-38%
-49%

2010E
2011E
2012E

11.7
10.2
9.5

12.6
11.0
10.2

2010E
2011E
2012E

14,849
15,582
16,879

14,849
15,582
16,879

2010E
2011E
2012E

4.04
3.85
3.55

4.37
4.16
3.84

35,744
1,104
34,640
8,609
24,398
33,008
68,752

38,701
1,104
37,597
-

0.52
2.5

0.59
2.7

4. Accretion/Dilution?
EPS Accretion/(Dilution)

Pre-Tax Synergies to EPS Breakeven (Rs)

Total Pre-Tax Synergies to EPS Breakeven

as a % of Target's LTM Sales

P/E to Maintain Share Price

EBITDA
Pro-Forma EBITDA (Rs)

Additional EV/EBITDA to Maintain Share Price

Pro-Forma Capitalization
Total Debt
Cash and Equiv.
Net Debt
Minority Interest
Preferred Stock
Acquirer Existing Book Equity Value
New Equity Issued
Transaction Fees
Book Equity Value
Total Capitalization
Pro-Forma Credit Ratios
Total Debt / Total Capitalization
Total Debt / LTM EBITDA

26,350
26,350
65,051

Net Debt / LTM EBITDA

LTM EBITDA / LTM Gross Int. Exp.

2.4
205

2.6
205

3
20%

4
30%

5
40%

6
50%

120%
20%
46%
68%

9%
33%
54%

-2%
22%
42%

-11%
11%
30%

(1,143)
(2,534)
(3,535)

(522)
(1,923)
(2,936)

99
(1,312)
(2,337)

719
(700)
(1,739)

-13%
-29%
-41%

-6%
-22%
-34%

1%
-15%
-27%

8%
-8%
-20%

14.1
12.1
11.2

15.5
13.2
12.2

17.1
14.5
13.3

19.0
15.9
14.5

14,849
15,582
16,879

14,849
15,582
16,879

14,849
15,582
16,879

14,849
15,582
16,879

4.86
4.63
4.28

5.27
5.02
4.64

5.68
5.41
5.00

6.09
5.81
5.36

43,137
1,104
42,033
-

46,834
1,104
45,730
-

50,531
1,104
49,426
-

54,227
1,104
53,123
-

29,278
29,278
72,415

31,718
31,718
78,552

34,158
34,158
84,688

36,598
36,598
90,825

0.60
3.0

0.60
3.3

0.60
3.5

0.60
3.8

EPS Accretion/Di

100%

80%

60%

40%

20%

0%
0%
-20%

10%

20%

30%

2.9
205

3.2
205

3.5
205

3.7
205

PS Accretion/Dilution

2010E
2011E
2012E

30%

40%

50%

60%

Analysis at Various Prices

Price Column
Premium to Market Price
Current Share Price
Shares Outstanding
Options Outstanding
Strike Price
Implied Offer Price
Fully-diluted Shares Outstanding
Implied Equity Value
Net Debt
Enterprise Value

1
-,

2
10%

3
20%

513
131
67,096
(1,031)
66,065

559
131
73,195
(1,031)
72,164

466
128
3
466
131
60,996
(1,031)
59,965

Revenue (INR in millions)

FY2009
17,349
FY2010
19,083
FY2011
20,992

3.5x
3.1x
2.9x

3.8x
3.5x
3.1x

Enterprise Value/Revenue
4.2x
3.8x
3.4x

EBITDA (INR in millions)

FY2009
12,518
FY2010
12,285
FY2011
13,131

4.8x
4.9x
4.6x

5.3x
5.4x
5.0x

Enterprise Value/EBITDA
5.8x
5.9x
5.5x

Net Income (INR in millions)

FY2009
5,427
FY2010
5,960
FY2011
6,853

11.2x
10.2x
8.9x

Implied Equity Value/Net Income

12.4x
13.5x
11.3x
12.3x
9.8x
10.7x

4
30%

5
40%

6
50%

606
131
79,295
(1,031)
78,264

652
131
85,394
(1,031)
84,363

699
131
91,494
(1,031)
90,463

nterprise Value/Revenue
4.5x
4.1x
3.7x

4.9x
4.4x
4.0x

5.2x
4.7x
4.3x

nterprise Value/EBITDA
6.3x
6.4x
6.0x

6.7x
6.9x
6.4x

7.2x
7.4x
6.9x

15.7x
14.3x
12.5x

16.9x
15.4x
13.4x

ed Equity Value/Net Income

14.6x
13.3x
11.6x

Contribution Analysis
% Contribution
IGate

IGate

Patni

Total

Revenue
FY10
FY11
FY12

8,547
7,974
7,642

19,083
20,992
23,091

27,630
28,966
30,733

31%
28%
25%

EBITDA
FY10
FY11
FY12

2,564
2,451
2,320

12,285
13,131
14,559

14,849
15,582
16,879

17%
16%
14%

Net Income
FY10
FY11
FY12

2,345
2,235
2,095

5,960
6,853
7,449

8,305
9,088
9,545

28%
25%
22%

% Contribution
Patni

69%
72%
75%

83%
84%
86%

72%
75%
78%

Assumptions
FY 06
Profit & Loss Items
Patni
Sales Income Growth Rate

Scroll Bar

Other Income Growth Rate

CAGR

Personnel Cost as % of Total Income

CAGR

Selling, General and Administrative Cost as % of Sales

CAGR

Depreciation as % of Gross Block

CAGR

Current Tax as % of Profit Before Tax

CAGR

CAGR
IGate
Sales Growth Rate

CAGR

Cost of Sales as % of Sales

CAGR

Selling, General & Administrative Cost as % of Sales

CAGR

Interest income (Net) Growth Rate

CAGR

Other Income Growth Rate

Scroll Bar

Income Tax Expense as % of Profit Before Tax

CAGR

Balance Sheet Items

Patni
Capital Work in Progress Growth Rate

CAGR

FY 07

Investments Growth Rate

CAGR

Sundry Debtor No. of Days

CAGR

Loans and Advances Growth Rate

Scroll Bar

Unbilled Revenue Growth Rate

CAGR

Current Liabilities as % of Gross Block

CAGR

Provisions as % of Gross Block

CAGR

IGate
Short-term investments Growth Rate

Scroll Bar

Accounts receivable, net No. of Days

CAGR

Unbilled revenues Growth Rate

Scroll Bar

Prepaid expenses and other current assets Growth Rate

CAGR

Prepaid income taxes as % of Profit Before Tax

CAGR

Receivable from Mastech Holdings Inc.

CAGR

Deposits and Other Assets Growth Rate

CAGR

Goodwill

CAGR

Accounts Payable No. of Days

CAGR

Accrued Payroll and related Costs

CAGR

Other Accrued liabilities as % of Gross Block

CAGR

Foreign Exchange Derivative contracts

CAGR

Restructuring Reserve

CAGR

Deferred Revenue Growth Rate

CAGR

FY 08

FY 09

FY 10

FY 11

FY 12

32%

13%

10
10%

10
10%

10
10%

38%

9%

21
23%

10
16%

20%

45%

44%

44%

44%

44%

24%

19%

22%

21%

21%

9%

8%

9%

9%

9%

12%

14%

13%

14%

13%

8%

-12%

-2%

-7%

-4%

62%

61%

62%

61%

61%

21%

18%

20%

19%

19%

-33%

31%

-1%

15%

7%

-96%

-7180%

7
7%

7
7%

7
7%

2%

2%

2%

10
2%

2%

14%

-46%

-16%

-31%

-24%

4%

37%

2
21%

122

95

9
108

5
101

7
105

-26%

78%

10
10%

10
10%

10
10%

74%

-34%

20%

-7%

6%

55%

25%

40%

33%

37%

22%

19%

20%

20%

20%

194%

10
10%

10
10%

10
10%

55

55

55

55

42%

16
16%

16
16%

17
17%

11%

11%

11%

11%

15%

15%

15%

15%

12%

12%

12%

12%

29%

25%

20%

20%

20%

20%

Income Statement
(Unless otherwise specified, all financials are in INR Thosand)
Income
Sales and Service Income
Other Income
Total
Expenditure
Personnel Cost
Selling, General and Administrative Cost
Depreciation
Less: Transfer from Revaluation Reserve
Interest Cost
Total
Net Profit Before Tax & Prior Period Items
Prior Period Items
Net Profit Before Tax
Provision of Tax
Current Tax
MAT Credit Entitlement
Frienge Benefit Tax
Total
Net Profit After Tax
Balance Brought Forward from Previous Year
Balance Available for Appropriation
Appropriation
Adjustments on Account of Employee Benefit
Proposed Dividend on Equity Shares
Dividend Tax
Transfer to General Reserve
Total Appropriation
Balance Carried to Balance Sheet

FY 07A

FY 08A

11,716,642
779,665
12,496,307

15,410,234
1,073,422
16,483,656

5,601,894
1,707,081
804,847
(81)
68,936
8,182,677

7,426,623
3,981,014
878,322
(81)
64,805
12,350,683

4,313,630

4,132,973

(43,351)

4,356,981

4,132,973

706,924
(265,261)
40,134
481,797

514,458
(320,392)
47,370
241,436

3,875,184

3,891,537

9,427,283

12,406,473

13,302,467

16,298,010

6,914
418,173
83,389
387,518
895,994

384,473
65,341
389,154
838,968

12,406,473

15,459,042

FY 09A

FY 10A

FY 11A

FY 12A

17,348,606
1,173,415
18,522,021

19,083,467
1,449,125
20,532,591

20,991,813
1,686,866
22,678,679

23,090,995
2,023,414
25,114,408

8,124,686
3,592,204
919,884
(81)
67,453
12,704,146

9,128,736
4,470,511

10,015,443
4,668,065

11,128,459
5,318,761

(81)
67,453
13,666,619

(81)
67,453
14,750,879

(81)
67,453
16,514,592

5,817,875

6,865,972

7,927,800

8,599,816

5,817,875

6,865,972

7,927,800

8,599,816

810,754
(434,179)
13,984
390,559

905,732

1,075,294

1,150,449

905,732

1,075,294

1,150,449

5,427,316

5,960,240

6,852,505

7,449,367

15,459,042

19,890,408

25,075,128

30,969,805

20,886,358

25,850,648

31,927,634

38,419,172

387,383
65,836
542,731
995,950

775519
775,519

957829
957,829

1152575
1,152,575

19,890,408

25,075,128

30,969,805

37,266,597

Balance Sheet
(Unless otherwise specified, all financials are in INR Thosand)

FY 07A

FY 08A

Fixed Assets
Gross Block
Less: Depreciation
Net Block

8,439,918
3,489,323
4,950,595

9,459,708
4,192,478
5,267,230

Capital Work in Progress Including Capital Advances

2,174,140

2,470,742

Total Fixed Assets

7,124,735

7,737,972

15,831,734

16,521,947

8,706
4,681,785
503,153
1,460,576
309,046
6,963,266

174,657
5,593,827
1,018,721
1,079,769
536,455
8,403,429

29,919,735

32,663,348

23,785

17,548

20,517
2,449,462
1,844,066
4,314,045

133,746
5,216,046
2,084,036
7,433,828

4,337,830

7,451,376

278,019
1,815
25,302,071
25,581,905

256,210
268
24,955,494
25,211,972

29,919,735

32,663,348

Assets

Investments
Current Assets, Loans and Advances
Deferred Tax Assets
Sundry Debtors
Cash and Bank Balances
Loans and Advances
Unbilled Revenue
Total Current Assets
Total Assets
Liabilities
Loans Fund
Secured Loans
Current Liabilities & Provisions
Deferred Tax Liabilities
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Total Liabilities
Net Worth represented by
Share Capital
Share Application Money
Stock Options Outstanding
Reserves & Surplus
Net Worth
Total Libialities & Equity Capital
Check

TRUE

TRUE

FY 09A

FY 10A

FY 11A

FY 12A

10,845,555
4,773,617
6,071,938

10,845,555
5,737,057
5,108,498

10,845,555
6,678,719
4,166,836

10,845,555
7,631,270
3,214,285

1,336,582

1,336,582

1,336,582

1,336,582

7,408,520

6,445,080

5,503,418

4,550,867

22,673,955

27,389,576

35,337,058

44,138,455

118,363
3,395,803
1,040,456
1,917,602
354,596
6,826,820

118,363
8,769,555
(608,150)
2,109,362
424,955
10,814,085

118,363
3,824,665
3,112,635
2,320,298
395,085
9,771,046

118,363
10,588,786
(3,863,564)
2,552,328
420,396
9,816,309

36,909,295

44,648,742

50,611,522

58,505,630

9,447

9,447

9,447

9,447

51,401
2,763,141
2,047,827
4,862,369

51,401
4,371,669
2,218,587
6,641,657

51,401
3,567,405
2,133,207
5,752,013

51,401
3,969,537
2,175,897
6,196,835

4,871,816

6,651,104

5,761,460

6,206,282

258,252
118,828
31,660,399
32,037,479

258,252
118,828
37,620,558
37,997,638

258,252
118,828
44,472,982
44,850,062

258,252
118,828
51,922,268
52,299,348

36,909,295

44,648,742

50,611,522

58,505,630

TRUE

TRUE

TRUE

TRUE

Assets Schedule
(Unless otherwise specified, all financials are in INR Million)
Opening Gross Block
Addition of Asset
Removal of Asset
Closing Gross Block
Depreciation Expense
Accumulated Depreciation
Imapirment
Net Block

FY 07A

FY 08A

8,439,918

8,439,918
1,019,790
9,459,708

3,489,323
4,950,595

4,192,478
5,267,230

FY 09A

FY 10A

FY 11E

FY 12E

9,459,708
1,385,847
10,845,555

10,845,555
10,845,555

10,845,555
10,845,555

10,845,555
10,845,555

4,773,617
6,071,938

963,440
5,737,057
5,108,498

941,662
6,678,719
4,166,836

952,551
7,631,270
3,214,285

Reserves
(Unless otherwise specified, all financials are in INR Thosand)

FY 07A

FY 08A

1,434
(81)
1,353

1,353
(81)
1,272

253,301
253,301

253,301
21,914
275,215

10,833,827
132,161
10,965,988

10,965,988
7,533
(2,348,086)
8,625,435

(1,447,666)

1,287,438
387,518
1,674,956

1,674,956
389,154
(21,914)
2,042,196

Total Reserves

12,895,598

9,496,452

Profit & Loss Account, Balance Carried Forward

12,406,473

15,459,042

Total Reserve & Surplus

25,302,071

24,955,494

Reserves & Surplus

Building Revaluation Reserve
Balance Brought Forward
Transfer to Profit & Loss Account
Total
Capital Redemption Reserve
Balance Brought Forward
Transfer from General Reserve
Total
Share premium
Balance Brought Forward
Share Premium Received on Issue of Equity Shares
Share premium Utilised for Buy Back of Shares
Total
Hedging Reserve
General Reserve
Balance Brought Forward
Transfer from Profit & Loss Account
Transfer to Capital Redemption Reserve
Total

FY 09A

FY 10A

FY 11A

FY 12A

1,272
(81)
1,191

1,191
(81)
1,110

1,110
(81)
1,029

1,029
(81)
948

275,215
275,215

275,215
275,215

275,215
275,215

275,215
275,215

8,625,435
257,216
8,882,651

8,882,651

8,882,651

8,882,651

8,882,651

8,882,651

8,882,651

26,007

26,007

26,007

26,007

2,042,196
542,731
2,584,927

2,584,927
775,519

3,360,446
957,829

4,318,275
1,152,575

3,360,446

4,318,275

5,470,851

11,769,991

12,545,429

13,503,177

14,655,672

19,890,408

25,075,128

30,969,805

37,266,597

31,660,399

37,620,558

44,472,982

51,922,268

Cash Flow Statement

(Unless otherwise specified, all financials are in INR Thosand)

FY 07A

Cashflow from Operations

PAT
Less: Depreciation
Less: Interest Expenses
Less: Increase in Deferred Tax Assets
Less: Increase in Sundry Debtors
Less: Increase in Loans and Advances
Less: Increase in Unbilled Revenue
Add: Increase in Liabilities
Add: Increase in Provisions
Add: Increase in Deferred Tax Liabilities
Net Cashflow from Operations

FY 08A

3,891,537
703,155
64,805
(165,951)
(912,042)
380,807
(227,409)
2,766,584
239,970
113,229
6,854,685

Cashflow from Investment Activities

Less: Increase in Gross Block(Fixed Asstes)
Less: Increase in CWIP
Less: Increase in Investments
Net Cashflow from Investment Activities

(1,019,790)
(296,602)
(690,213)
(2,006,605)

Cashflow from Financing Activities

Less: Increse in Reserves
Less: Appropriations
Add: Increase in Secured Loans
Add: Increase in Stock Option Outstanding
Add: Increase in Share Application Money
Less: Interest Expenses
Add: Increase in Share Capital
Net Cashflow from Financing Activities

(3,399,146)
(838,968)
(6,237)
268
(1,815)
(64,805)
(21,809)
(4,332,512)

Net Change in Cash

515,568

Cash Balance
Opening Cash Balance
Net Cashflow
Closing Cash Balance
Cash Balance in Balance Sheet
Check

503,153
515,568
1,018,721
503,153

1,018,721
TRUE

FY 09A

FY 10A

FY 11A

FY 12A

5,427,316
581,139
67,453
56,294
2,198,024
(837,833)
181,859
(2,452,905)
(36,209)
(82,345)
5,102,793

5,960,240
963,440
67,453
(5,373,752)
(191,760)
(70,359)
1,608,528
170,760
3,134,549

6,852,505
941,662
67,453
4,944,891
(210,936)
29,870
(804,264)
(85,380)
11,735,801

7,449,367
952,551
67,453
(6,764,122)
(232,030)
(25,311)
402,132
42,690
1,892,731

(1,385,847)
1,134,160
(6,152,008)
(6,403,695)

(4,715,621)
(4,715,621)

(7,947,482)
(7,947,482)

(8,801,396)
(8,801,396)

2,273,539
(995,950)
(8,101)
118,560
(67,453)
2,042
1,322,637

775,438
(775,519)
(67,453)
(67,534)

957,748
(957,829)
(67,453)
(67,534)

1,152,494
(1,152,575)
(67,453)
(67,534)

21,735

(1,648,606)

3,720,786

(6,976,199)

1,018,721
21,735
1,040,456

1,040,456
(1,648,606)
(608,150)

(608,150)
3,720,786
3,112,635

3,112,635
(6,976,199)
(3,863,564)

1,040,456

(608,150)

3,112,635

(3,863,564)

TRUE

TRUE

TRUE

TRUE

iGate Income Statement

(Unless otherwise specified, all financials are in $ thousands)
Revenue
Sales
Cost of Sales
Gross Margin
Selling, General & Administrative Cost
Depreciation & Amortization
Restructuring Charges
Goodwill Impairment Charges
Income from Operations
Interest income (Net)
Other Income
Equity in Income of Affiliated Companies
Loss on Venture Investments & Affiliated Companies, Net
Income from Continuing Operations before Income Taxes
Income Tax Expense
Income from Continuing Operations
Income from discontinued Operations
Net Income
Net Income attributable to non-controlling Interest
Net income attributable to iGATE

FY 06

FY 07

201,734
136,622
65,112
42,471
10,439
769
1,950
9,483
3,834
2,106
29
(193)
15,259
1,767
13,492
5,085
18,577
2,992
15,585

FY 08

FY 09

FY 10

FY 11

FY 12

218,798
136,441
82,357
45,327
9,348
27,682
2,568
93
2
30,345
675
29,670
1,605
31,275
371
30,904

193,099
117,693
75,406
35,433
7,582
32,391
3,353
(6,584)
29,160
585
28,575
28,575
28,575

189,926
117,098
72,828
15,857

177,211
108,634
68,577
14,116

169,823
104,404
65,419
13,854

56,971
3,312
(7,045)
53,238
1,126
52,112
52,112
52,112

54,462
3,798
(7,538)
50,721
1,045
49,676
49,676
49,676

51,564
4,053
(8,066)
47,552
993
46,559
46,559
46,559

iGate Consolidated Balance Sheet

(Unless otherwise specified, all financials are in $ thousands)
Assets
Current Assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Unbilled revenues
Prepaid expenses and other current assets
Prepaid income taxes
Deferred tax assets
Receivable from Mastech Holdings Inc.
Total current assets
Deposits and Other Assets
Property and Equipment, Net
Deferred Tax Assets
Intangible Assets, Net
Goodwill
Total assets
Liabilities
Current Liabilities:
Accounts Payable
Accrued Payroll and related Costs
Other Accrued liabilities
Deferred Income Taxes
Foreign Exchange Derivative contracts
Restructuring Reserve
Deferred Revenue
Total current liabilities
Other long-term liabilities
Foreign exchange derivative contracts, long term
Total liabilities
Shareholder's Equity
Preferred Shares
Common Shares of Par Value $0.01 per Share
Common Shares held in Treasury(At Cost, 990,102 shares)
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Total Shareholder's Equity
Total Liabilities & Shareholder's Equity
Check:

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

30,878
34,601
33,778
6,787
4,184
3,300
32
742
114,302

29,565
67,192
24,533
9,636
4,628
4,247
31
87
139,919

74,044
73,911
32,820
11,178
5,119
7,754
31
87
204,944

125,591
81,302
20,694
12,966
5,662
7,387
31
87
253,721

151,709
89,433
30,589
15,170
6,263
6,926
31
87
300,208

3,986
34,490
5,016
2,920
29,179
189,893

4,482
42,682
8,474
2,086
30,517
228,160

5,040
42,682
8,474
2,086
30,517
293,743

5,667
42,682
8,474
2,086
30,517
343,146

6,372
42,682
8,474
2,086
30,517
390,339

1,785
13,146
15,898
471
7,468
271
766
39,805

1,515
14,173
18,003
1,097
101
918
35,807

1,768
14,173
18,003
1,097
101
1,100
36,242

1,278
14,173
18,003
1,097
101
1,318
35,970

1,650
14,173
18,003
1,097
101
1,580
36,604

882
3,134
43,821

1,035
36,842

1,035
37,277

1,035
37,005

1,035
37,639

551
(14,714)
173,198
15,613
(28,576)
146,072

561
(14,714)
180,278
38,228
(13,035)
191,318

561
(14,714)
180,278
90,340

561
(14,714)
180,278
140,016

561
(14,714)
180,278
186,575

256,465

306,141

352,700

189,893

228,160

293,743

343,146

390,339

TRUE

TRUE

TRUE

TRUE

TRUE

iGate Cash Flow Statement

(Unless otherwise specified, all financials are in $ thousands)
Cashflow from Operations
PAT
Less: Increase in Short-term investments
Less: Increase in Accounts receivable, net
Less: Increase in Unbilled revenues
Less: Increase in Prepaid expenses and other current assets
Less: Increase in Prepaid income taxes
Less: Increase in Deferred tax assets
Less: Increase in Receivable from Mastech Holdings Inc.
Add: Increase in Accounts Payable
Add: Increase in Accrued Payroll and related Costs
Add: Increase in Other Accrued liabilities
Add: Increase in Deferred Income Taxes
Add: Increase in Foreign Exchange Derivative contracts
Add: Increase in Restructuring Reserve
Add: Increase in Deferred Revenue
Net Cashflow from Operations
Cashflow from Investment Activities
Less: Increase in Deposits and Other Assets
Less: Increase in Property and Equipment, Net
Less: Increase in Deferred Tax Assets
Less: Increase in Intangible Assets, Net
Less: Increase in Goodwill
Add: Increase in Other long-term liabilities
Add: Increase in Foreign exchange derivative contracts
Net Cashflow from Investment Activities
Cashflow from Financing Activities
Add: Increase in Preferred Shares
Add: Increase in Common Shares Value
Add: Increase in Paid-in-Capital
Add: Increase in Accumulated Other Comprehensive Loss
Less: Dividends declared
Net Cashflow from Financing Activities
Net Change in Cash
Cash Balance
Opening Cash Balance
Net Cashflow
Closing Cash Balance
Cash Balance in Balance Sheet

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

28,575
(32,591)
9,245
(2,849)
(444)
(947)
1
655
(270)
1,027
2,105
(471)
(6,371)
(170)
152
(2,353)

52,112
(6,719)
(8,287)
(1,542)
(491)
(3,507)
253
182
32,002

49,676
(7,391)
12,126
(1,788)
(543)
367
(491)
218
52,174

46,559
(8,130)
(9,895)
(2,204)
(601)
462
372
262
26,824

(496)
(8,192)
(3,458)
834
(1,338)
153
(3,134)
(15,631)

(558)
(558)

(627)
(627)

(705)
(705)

10
7,080
15,541
(5,960)
16,671

13,035
13,035

(1,313)

44,479

51,547

26,118

30,878

30,878
(1,313)
29,565

29,565
44,479
74,044

74,044
51,547
125,591

125,591
26,118
151,709

30,878

29,565

74,044

125,591

151,709

TRUE

TRUE

TRUE

TRUE

TRUE

Consolidated Statement of
Shareholder's Equity & Comprehensive Income
(Unless otherwise specified, all financials are in $ thousands)
Additional Paid-in Capital
Opening Balance
Excercise of Stock Options
Stock Based Compensation Expense
Subsidiary Option Activity
Redemption of Subsidiary Options
Closing Balance

Retained Earnings
Opening Balance
Application of FIN 48
Matech Holdings, Inc Spin-Off
Dividend Declared on Common Stock
Net Income
Closing Balance

FY 06

FY 07

167,626

167,626
2,490
1,590
2,350
(8,299)
165,757

(21,037)

(21,037)
(574)
15,585
(6,026)

FY 08

FY 09

FY 10

FY 11

FY 12

165,757
1,439
5,353
411
238
173,198

173,198
1,894
5,186
180,278

180,278

180,278

180,278

180,278

180,278

180,278

(6,026)
(9,265)
30,904
15,613

15,613
(5,960)
28,575
38,228

38,228

90,340

140,016

52,112
90,340

49,676
140,016

46,559
186,575

This open source financial model is for information purposes only. Due efforts have been taken by Pristine and its
employees in preparation of this model to ensure that the information is accurate to the best of their knowledge and
belief. The primary source of information contained in the report has been the S-1 filing of the company with SEC.
Pristine, makes no representations or warranties regarding the accuracy or completeness of such information and
expressly disclaims any and all liabilities based on such information or on omissions there from.
The analysts who compiled this open source financial model hereby state that the contents in the document reflect
his/her/their views and opinions on the subject matter. Pristine, and its employees/ analysts do conduct trainings and
from time to time to seek establish business or financial relationships with companies covered in the open research
models. As a result, investors should be aware that Pristine and/or such individuals may have conflicts of interests
that could affect the objectivity of this report.

Neev Knowledge Management - Pristine

www.edupristine.com
info@edupristine.com
Pristine is India's largest authorized training provider for CFA, FRM, PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.

n by Pristine and its

f their knowledge and
company with SEC.
uch information and
m.

the document reflect

o conduct trainings and
d in the open research
conflicts of interests

anagement - Pristine

odeling. It has
n all the major Indian