Genpact Q4 net income down 8.6%

2014 revenue growth guidance in the range of $2.22bn to $2.26bn

India’s largest business process outsourcing (BPO) firm Genpact reported a 8.6 per cent drop in its net profit to $48.8 million for the quarter ended December 31, 2013, against the corresponding period last year.

While the December quarter (fourth quarter for Genpact) is considered to be a seasonally weak one, the drop came largely on account of a modest growth in revenues and reduced gains from unfavourable foreign exchange movements on a year-on-year basis.

Even though the revenues for the quarter went up 10 per cent at $558.5 million on a year-on-year basis, Genpact managed to just meet the lower end of its full year guidance which was also slashed at the end of the September quarter.

For 2013, net income of the company was $229.7 million, up 28.9 per cent from 2012. The company reported revenues of $2.12 billion, an increase of 12.1 per cent over the previous year. In the quarter ended September 30, 2013, Genpact had revised its guidance downward to $2.12 –$2.13 billion against the previously stated $2.15 billion-$2.2 billion.

The management attributed the subdued show to revenue headwinds during the year, including reduction in the mortgage originations business related to the US mortgage refinancing volumes; softness in the business from General Electric (its former parent and largest customer) and the adverse impact of foreign exchange.