Genpact net up 20%

Genpact, the country’s largest business process outsourcing (BPO) company, today said its third-quarter net income rose 20 per cent to $41.5 million from $34.5 million in the year-ago period. Net revenues for the three months to September rose 13.1 per cent to $321.5 million from $284.4 million. Genpact follows the calendar year as its financial year.

However, it reduced its full-year revenue growth guidance to 12-13 per cent from 14-17 per cent as stated in the previous quarter of this financial year.

“While our results for the quarter are good and our outlook for demand for our services continues to be positive, we have to recalibrate our full-year guidance,” said Pramod Bhasin, president and chief executive officer of Genpact.

“We have a strong sales pipeline that has grown by 30 per cent year-over-year and eight per cent sequentially, in terms of total contract value, particularly with deals from existing clients. Although our revenue growth during this quarter was slower than we expected, this was primarily due to client delays in transitioning signed contracts into full production. We expect to realise the delayed revenue in the future,” Bhasin said. Sequentially, net income rose 42.6 per cent from $29.1 million in the trailing quarter, while net revenues were up 4.5 per cent from $307.6 million.

With a foreign exchange gain of $5.5 million, the company generated $68 million cash. Revenues from clients other than GE, which the company refers to as global client revenues, contributed 61.9 per cent to Genpact's total revenues. The rest came from GE.