<p>Business process management and technology services firm Genpact, reported its second quarter results with a net income at $61.1 million up 56.6% from $39 million in the corresponding quarter last year.
The company reported revenues at $467.6 million, up 17.6% from 397.6 million in the same quarter. Revenue were driven by growth in business from global clients (non-GE). Business process management and technology services revenues from Global Clients were up 19.8% and 38.4% respectively. Compared to last quarter (ended March 31, 2012) Genpact's revenue was up 7.3% and net income was up 58% from $38.5 million.
"Genpact had another great quarter, with strong growth in revenues, adjusted operating income, net income and EPS. Revenue growth was broad based across all our geographies, including Europe, and all major service lines including finance and accounting. We established 35 new client relationships this quarter across all major industry groups, up from 26 in the second quarter of 2011. Our results continue the momentum we have had since the beginning of 2011,” said N V “Tiger” Tyagarajan, Genpact's president and CEO.
The company also announced a special dividend of $2.24 per common share, or approximately $500 million. The dividend will be funded through a combination of balance sheet cash and incremental debt expected to be raised from institutional lenders.
Tyagarajan said, “The management team regularly reviews our capital structure with the Board of Directors. We generate substantial operating and free cash flow, have approximately $442 million of cash on our balance sheet and, taking into account the financial flexibility needed to continue to pursue acquisitions and organic growth initiatives, we concluded that a special dividend, funded in part by additional, modest leverage, would enhance shareholder value.”
The company also reinstated its guidance for the full years and said that revenues for the year will be in the range of $1.86 billion - $1.90 billion, and adjusted operating income margins in a range of 16-16.5%.
Revenues from Global Clients now represent approximately 73% of Genpact's total revenues, with the remaining 27% of revenues, or $126.2 million, coming from GE. GE’s revenues increased 3.2%.