Genpact Q4 net declines 6%; pegs 2015 revenue at $2.46-2.5 bn

However, revenue rose by 8% to $601.5 mn

US-based business process outsourcing major Genpact on Thursday reported a six per cent decline in its net profit to $45.8 million for the quarter ended December.

The firm had posted a net profit of $48.8 million in the year-ago period, it said.

The revenue rose by eight per cent to $601.5 million in the October-December quarter against $558.5 million a year ago.

Genpact follows the January-December financial year.

On 2015 revenues, Genpact said it expected those to be $2.46-2.50 billion.

President and chief executive, N V Tyagarajan, said: "We delivered on our stated financial expectations and made significant progress executing on our growth strategy, including completing all of our planned investments for the year."

For the entire 2014 fiscal, net profit declined 16 per cent to USD 192 million against USD 227.9 million in 2013.

Revenues rose by 7 per cent to USD 2.28 billion from USD 2.13 billion during the same period.

Genpact generated USD 271.8 million cash from operations in 2014 and USD 93 million in the fourth quarter. It had about USD 462 million in cash and cash equivalents as of December 31, 2014.

At the end of the fourth quarter, Genpact had around 67,900 employees worldwide, up from about 63,600 as of December 31, 2013. Its employee attrition rate for 2014 was 25 per cent.

Revenues from Global Clients represented about 79.6 per cent of Genpact's total revenues (USD 1.81 billion) in 2014 with the remaining 20.4 (USD 466.1 million) coming from GE.

GE revenues decreased 2.4 per cent compared to 2013, while revenues from Global Clients grew 9.6 per cent for the full year 2014.

BPO services accounted for 76.2 per cent of the revenues for 2014 and 77.7 per cent for the fourth quarter from 75.4 per cent for 2013 and 75.3 per cent for the fourth quarter of 2013.

Revenues from IT services were 23.8 per cent of total revenues for 2014 and 22.3 per cent for the fourth quarter, compared to 24.6 per cent for 2013 and 24.7 per cent for the fourth quarter of 2013.

On revenue outlook, Tyagarajan said: "We expect revenues for 2015 to be in the range of USD 2.46-2.50 billion. We expect 2015 adjusted operating income margins to be approximately 15 per cent."

The disruptive trend sweeping across industries requires firms to integrate new technology and new find ways to use data and insights as a competitive advantage, Tyagarajan said.

"Our strategy is focused on building domain-led solutions that are responsive to this trend. We believe we are on right path to further differentiate Genpact and increase our competitiveness and are excited by the momentum in our business as we begin 2015."