Genpact Q4 net up 50% y-o-y

Genpact, the country's largest BPO, has reported a 50.8 per cent increase in its year-on-year net income for the fourth quarter ended December 31, 2008. Net income stood at $46.9 million (Rs 234.5 crore) as compared to $31.1 million (Rs 155.5 crore) in the year ago period.

In the same time period, total net revenues rose by 21.7 per cent to touch $281.8 million (Rs 1,409 crore) compared with $231.5 million (Rs 1,157.5 crore) in the corresponding quarter of the previous year.

Sequential (quarter-on-quarter) net income was up 39.5 per cent while the net revenues increased by 4.06 per cent from the third quarter ended September 30, 2008.

In 2008, about 80 per cent of Genpact’s revenues came from business process services, up from 76 per cent in 2007, while revenues from IT services were 20 per cent, reflecting the continuing industry softness in IT spending.

Pramod Bhasin, Genpact’s President and CEO said: “We see new opportunities in specific areas such as collections, supply chain, India  and China and intend to put renewed focus on these areas to drive growth.”

The full year net income was up 121.8 per cent at $125.1 million (Rs 625.5 crore) as compared to $56.42 million (Rs 282.1 crore) posted in 2007. Net revenues at $1.04 billion (Rs 5,204 crore), went up by 26.4 per cent, from $823.1 million (Rs 4,115.5 crore) in the last fiscal. Foreign exchange gain for the full year stood at $4.08 million (Rs 20.4 crore). The company has $385 million (Rs 1,925 crore) of cash on the balance sheet.

Genpact has approximately 36,200 employees worldwide, an increase from 32,700 at the end of 2007.

For 2009, the company has given a full year guidance for revenue growth between 10-15 per cent, as compared to 17.1 per cent in 2008. Genpact expects a flat first quarter of 2009.