SYNTEL INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2018 10-Q, filed Aug 1, 2018. Its latest SEC filing is a 15-12G from Oct 19, 2018.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Provides technology, digital transformation and outsourced business-process services to large companies in financial, healthcare and other industries.

How Did They Make Money?

Syntel earns fees for time-and-materials work as services are performed and for fixed-price maintenance throughout the service term. Fixed-price development projects are invoiced at milestones or under other contract terms.

FY2017 revenue

Who Were Their Customers?

Serves large companies in financial services, healthcare and other industries, selling services directly through sales and account-management teams.

Customers above 10% of revenue, FY2017

of revenue from three customers (16%, 15%, 14%)

FY2015: 36% from two customers

Did Revenues Turn Into Profits?

Yes. It kept 18 cents of every revenue dollar as net income in FY2017 and turned 19 cents into free cash flow.

Operating income, FY2017

26% of revenue

▼ −10% vs FY2016 ($262.3M, 27%)

Net income, FY2017

18% of revenue

▲ Now profitable vs FY2016 (−$57.4M, −6%)

Free cash flow, FY2017

19% of revenue

▲ Now profitable vs FY2016 (−$29.2M, −3%)

How Were They Changing?

Since the FY2017 annual report

Latest quarter: Q2 FY2018, the three months to Jun 30, 2018

Revenue: ▲ +10%; vs $226.8M in Q2 FY2017
Net income: ▲ +12%; vs $36.7M in Q2 FY2017

Oct 9, 2018 Atos completed its acquisition of Syntel Syntel became an indirect wholly owned subsidiary of Atos.
Jul 23, 2018 Syntel agreed to be acquired by Atos Atos agreed to acquire Syntel for $41.00 per share in cash, subject to shareholder and regulatory approvals.

Grew. Revenue grew 12% in 4 years, from $824.8M in FY2013 to $923.8M in FY2017, about 3% a year.

Automation takes a larger role The earlier report described internally developed methods, tools and accelerators as differentiators; the latest describes SyntBots as an automation platform that supports IT and process outsourcing, modernization, engineering and digital services.

Comments