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| Genpact net income down 1.6%, reaffirms outlook |
| BS Reporter / New Delhi Nov 06, 2009, 00:10 IST |
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A fall in interest income and earnings from one of its units that came out of the Software Technology Parks of India bracket pulled down the net income of Genpact, the country’s largest business process outsourcing (BPO) company. It has posted a 1.6 per cent fall in its net income for the third quarter ended September 30, at $33 million (Rs 155.3 crore) compared with $33.6 million (Rs 157.9 crore) in the corresponding quarter a year earlier. Total net revenue was $284.4 million (Rs 1,336.6 crore), up five per cent year-on-year from $270.8 million (Rs 1,272.7 crore).
Genpact, which is ‘seeing encouraging signs in the market’, has confirmed its earlier full-year revenue expectation (‘guidance’) of 6-9 per cent growth over 2008, besides raising the adjusted operating margin guidance to 17.5-18 per cent from the 17-17.5 per cent it had expected in the correspondings quarter last year.
On a sequential basis, the BPO’s net income was up 3.9 per cent from $31.8 million (Rs 149.5 crore) in the trailing quarter, while total net revenue rose 4.2 per cent quarter-on-quarter from $272.85 million (Rs 1,282.4 crore).
Revenues from clients other than GE, which Genpact refers to as global client revenues, represented 60.8 per cent of Genpact’s total revenues and grew 17.4 per cent in the quarter. Approximately 84.9 per cent of Genpact’s revenues came from business process services, up from 80.9 per cent in the year ago period. Genpact’s headcount stood at 37,700 employees for the quarter. The company added 19 clients in the quarter, a historical high.
“We are encouraged by the strength and expansion of our pipeline, some faster deal conversion times, higher win rates and the calibre and scope of recent client wins. Pricing is still competitive, but appears to be stabilising. Our forward view is now more optimistic than earlier this year.
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