iGate Q1 net income up 54% at $17.9 mn

IT firm iGate today posted 54% jump in net income at $17.9 million for the first quarter ended March 31, 2011.

This is against a net income of $11.6 million registered in the January-March quarter of 2010, iGate said in a statement.

Revenues for the first quarter of 2011 increased 31% to $75.8 million from $57.9 million in the first quarter of 2010.

"Delays in clients' budgets created softness in the market, which was further exacerbated by our focus on the Patni acquisition creating a sequentially weak quarter for iGate," iGate Chief Executive Officer Phaneesh Murthy said.

The US-based firm, in January this year, acquired a majority stake in Patni Computer Systems for $1.2 billion in one of the largest deals in the Indian IT sector.

"The process of acquiring Patni Computer Systems is on track and we expect the transaction to be completed shortly. We have raised $770 million through a bond issue to fund the acquisition and from calendar Q2, we will be reporting consolidated financials for iGate," Chief Financial Officer Sujit Sircar said.

IGate added four new customers during the quarter. The company ended the first quarter 2011 with an employee base of 8,244.