EXL Services Q1 net up 49% at $8.36 mn

Outsourcing major EXL Services has posted 48.69% increase in net income at $8.36 million during the first quarter ended March 31, 2011.

The company had a net income of $5.62 million during January-March, 2010 period.

"EXL delivered solid first quarter results. Our domain-centric and customer focused approach has resulted in an increased volume of business opportunities from existing clients and success in winning new customers," EXL Services President and CEO Rohit Kapoor said in a statement.

The company's revenues for the quarter ended March 31, 2011 were $72.90 million compared to $54.48 million in the same quarter last year, up 33.81%.

EXL has also announced that it will acquire finance and accounting (F&A) outsourcing firm Outsource Partners International (OPI) for cash deal of $91 million.

"The acquisition furthers EXL's strategic objective of leveraging technology and proprietary intellectual property in our solution offerings. We will also firmly establish our onshore outsourcing presence in the US, while enhancing our European and Asian delivery footprint," Kapoor said.

OPI has over 3,700 professionals globally and about 80 clients.

The Nasdaq-listed firm will utilise existing cash and a working capital revolver to fund the transaction.

For year 2011, EXL has raised its outlook and expects revenues between $347 million-$355 million.

"The company is updating the guidance for calendar year 2011 based on current exchange rates and assuming the OPI acquisition closes on or prior to June 1, 2011. Revenues (are expected) between $347 million-$355 million from $295 million-$305 million," it said.

EXL's include insurance, banking, financial services, utilities, transportation and travel industries.

The company's headcount stood at about 13,000 as of March 31, 2011. Attrition rate for billable employees stood at 32.4% in the first quarter of 2011 compared to 32.7% in Q1 2010 and 35.5% in Q4 2010.