iGATE Q4 net up 26% at $8.6 mn

Nasdaq-listed software company iGATE today posted a 26.5 per cent cent rise in net income at $8.6 million (around Rs 40 crore) for the fourth quarter ended December 2009.

Revenue from operations was $52.40 million in the quarter against $51.5 million in the same period last year.

Gross profit margin improved marginally to 40.6 per cent from 40.5 per cent in the corresponding quarter last year. Operating margin has gone up to 20 per cent of revenue from 14.8 per cent in the corresponding quarter last year.

The company had 6,910 employees as of December 31, 2009, net addition of 530 employees during the quarter.

"We are starting 2010 with a strong momentum both from a revenue growth and operating margin perspective. I am also glad that we were able to achieve twenty percent operating margin in an economically turbulent time," iGATE CEO Phaneesh Murthy said.

Company's CFO Sujit Sircar said, "Consistent improvement in operating metrics improved our operating margin for the quarter. Good financial management helped us improve our cash flow and maintain a healthy balance sheet."

"While we are encouraged by the signs of an improving economy, the volatility of the global currency market is still a cause of concern which has brought our diluted earnings per share down for the quarter despite a higher operating margin," he added.