Genpact Q2 net slips 23%

Company had posted a net profit of $63.9 million in the same period last year

BPO major Genpact has reported a 23% drop in its net profit at $49 million for the second quarter ended June 30, 2014.

The US-based firm, which follows January-December fiscal, had posted a net profit of $63.9 million in the same period last year, it said in a statement.

Its revenues rose by 5% to $561.6 million in April-June quarter of 2014 from $534.8 million in the year-ago period.

Genpact has raised its revenue guidance for the current fiscal in the range of $2.24 billion to 2.28 billion, which will include the revenues from Pharmalink Consulting, a firm it acquired in April this year.

Commenting on the performance, Genpact President and CEO NV Tyagarajan said: "Our revenue growth and adjusted operating income and net income levels are all tracking in line with our expectations. We are being disciplined in executing our strategy, with a particular emphasis on investments in our chosen verticals, geographies and service lines."

Revenues from global clients grew 6.8% over the second quarter of 2013.

Revenues from Global Clients represented about 78.7% of Genpact's total revenues ($441.8 million), with the remaining coming from GE ($119.8 million).

GE revenues decreased 1.2% from the second quarter of 2013, adjusted for dispositions by GE of businesses that Genpact continues to serve as Global Clients, it said.

In the 12 months ending June 30, 2014, Genpact grew client relationships with revenues over $5 million to 85 from 81 as of June 30, 2013.

Business process management revenues from global clients grew by 8.7%, led by growth in the consumer packaged goods, life sciences, insurance and capital markets verticals.

Genpact said 75.6% of its revenues for the quarter came from BPO services, up from 75.1% in the second quarter of 2013. Revenues from IT services were 24.4% of total revenues for the quarter.

The NYSE-listed firm generated $78.8 million of cash from operations in the quarter. It had about $376.8 million in cash and cash equivalents as of June 30, 2014.

Genpact had about 66,900 employees worldwide, up from 60,200 as of June 30, 2013. Its attrition rate for the quarter stood at 26%.