Genpact Q1 net up 28.2% at $36 mn

Driven by strong demand, BPO major Genpact today posted a 28.2% jump in net income at $36.1 million for the quarter ended March 31, 2011 and has forecast strong full-year revenue.

The net income attributable to Genpact shareholders stood at $28.2 million in the first quarter of 2010, Genpact said in a statement.

"Genpact delivered a very good quarter, with strong growth in revenues, income, earnings per share and cash flows. Revenues from business process management services for Global Clients continued to be our growth engine," Genpact President and CEO Pramod Bhasin said.

Revenues stood at $330.6 million for Q1 FY2011, up 14.7% from $288.2 million in the same quarter of 2010.

The company has also raised its annual revenue growth outlook to 23-25%, taking into account its acquisition of rival Headstrong last month.

"With the acquisition of Headstrong, we now expect full year revenue growth of 23-25% for the year. This reflects Genpact full year revenue growth of 10-13% plus 8 months of revenues from Headstrong," Bhasin said.

The company had announced the acquisition of consulting and IT services firm Headstrong Corporation for a cash consideration of $550 million.

Revenues from clients other than GE, referred to as global client revenues (contributing about 65.9% to Genpact's revenues) grew 23.6%.

About 87.2% of Genpact's revenues for the quarter came from BPO services, while IT services accounted for 12.8% of the Q1 revenue.

As of March 31, 2011, Genpact had about 45,500 employees worldwide, an increase from approximately 41,300 as of March 31, 2010. Genpact's employee attrition rate for the quarter was 29%, measured from day one of employment, an increase from 23% for the same period in 2010.

The company had about $481 million in cash and cash equivalents and short term investments as of March 31, 2011.