iGate Q3 Net up 12.7% at $31.9 mn

Outsourcing firm iGate today reported a 12.7% increase in its net income at $31.9 million for the third quarter ended September 30, 2013.

 

The California-based firm had posted a net income of $28.3 million in the year-ago period, iGate said in a filing to the US Securities and Exchange Commission (SEC) today.

 

Its revenues rose by 8.2% to $293.4 million in the July-September quarter in 2013 against $271.1 million in the same quarter in 2012.

 

In the April-June 2013 quarter, iGate's net income stood at $30 million, while, revenues were at $283.3 million.

 

Commenting on the firm's performance, iGate CFO Sujit Sircar said: "Overall it has been a very good quarter for iGATE. Our operational efficiencies coupled with a positive gain out of Indian rupee depreciating against the US dollar resulted in an expansion of our margins and earnings.

 

"We also generated $86 million of operating cash during the quarter which is another positive."

 

The forex tailwinds, however, seem to have settled down with the Rupee gaining marginal stability over the past couple of weeks, he added.

 

IGATE added eight new customers during the third quarter, the firm said adding its total employees stood at over 28,200 at the end of the July-September quarter.

 

IGate CEO and President Ashok Vemuri said: "I am pleased with our ability to accelerate revenue growth both sequentially and year-over-year. I am also happy with the quality of deals we are winning that are longer-term in nature with focus on innovation and productivity gains to our customers."

 

The firm's iTOPS model is a clear differentiator in the IT services marketplace. Clients are increasingly looking for partners to deliver solutions that can integrate emerging technologies with business process expertise to drive innovation and value, Vemuri, who joined the firm as its CEO on last month, added.