Genpact net profit rises 21%

Company maintains full-year revenue forecast at $2.12-2.2 billion

Genpact, India’s largest business process outsourcing (BPO) services provider, has reported a net profit of $46.7 million (about Rs 252 crore) for the quarter ended March, a rise of 21.3 per cent compared to the corresponding quarter last year.

The revenues of the NYSE-listed company rose 15.7 per cent to $503.8 million (about Rs 2,720 crore), primarily due to growth in its non-GE businesses and verticals such as consumer goods, life sciences, banking, financial services and insurance.

Compared to the previous quarter, Genpact’s net profit fell 12.5 per cent. In the quarter ended December, the company’s revenues stood at $507.7 million.

Genpact maintained its full-year revenue forecast for this year. Earlier, it had estimated for 2013, revenue would stand at $2.12-2.2 billion, a rise of 10.4-15.8 per cent compared to last year.

During the quarter ended march, revenues from global clients rose 21 per cent, while revenues from its largest client, GE, increased just one per cent year-on-year. Of its revenues, 23.2 per cent were accounted for by GE.

N V ‘Tiger’ Tyagarajan, Genpact’s president and chief executive, said though the company continued to remain cautious in the short term, it was starting to see signs of improvement, and this made it bullish in the long term. “We have had a good start to 2013, with another quarter of consistent growth. We continue to deliver clear, measurable business outcomes for clients and differentiate our approach by strengthening our capabilities and expertise,” he said.

The mix of Genpact’s information technology and BPO services businesses revenues remained unchanged during the quarter, with the former accounting for 23.8 per cent of the total businesses.

Genpact generated $31.5 million of cash during the quarter. At the end of the quarter, the company had $493 million in cash, cash equivalents and short-term deposits. As of March 31, it had 60,200 employees globally, compared with 56,500 as of March 31, 2012.