EXL Services net income up 51%

The Nasdaq listed, business process outsourcing (BPO) company EXL Services, reported an increase of 51 per cent in its net income at $6.2 million (around Rs 24.4 crore) for the third quarter ended 30 September, 2007 compared with $4.1 million (around Rs 16.1 crore) in the corresponding quarter last year.

The revenues in the quarter were $46.6 million (around Rs 184 crore), up 31 per cent from $35.7 million in the corresponding quarter last year.

The net income was up 10.7 per cent from $5.6 million (around Rs 22.1 crore) in the previous quarter and revenues increased by 8.4 per cent during the period. EXL has revised its guidance for 2007.

The company gave an upward revenue guidance between $176 million and $178 million from $168 million to $172 million last year. It maintained its adjusted operating margin guidance at 12 per cent despite strengthening of the rupee.

The operating margins in the quarter were 10 per cent compared with 6.1 per cent in the preceding quarter.

The adjusted operating margin, excluding the impact of stock-based compensation expenses and amortization of intangibles, increased by 300 basis points to 13 per cent from 10 per cent in the preceding quarter

Vikram Talwar, CEO and Vice-Chairman of EXL said, "We strengthened our leadership position in the insurance vertical by winning a deal with a leading US insurance carrier."