Genpact Q1 net up 52% y-o-y

India’s largest business process outsourcing (BPO) firm Genpact posted a net income of $30 million (Rs 147 crore) for the first quarter ended 31 March, 2009, up 52 per cent from $19.69 million (Rs 96.5 crore) in the corresponding quarter last year. Net revenue for the quarter stood at $265.8 million (Rs 1,302.4 crore), up 13 per cent year-on-year from $234.6 million (Rs 1,150 crore).

“Because we anticipated some of the economic challenges last year, we were able to put aggressive cost reduction measures in place early, which contributed to a 374 basis point improvement in our adjusted income from operations margin from the first quarter of 2008. We expect many of these cost measures to be sustainable through 2009, enabling us to stay ahead of the game,” said Pramod Bhasin, Genpact’s President and CEO.

The BPO’s foreign exchange gain for the quarter was $2.8 million (Rs 13.7 crore). Sequentially, Genpact’s net income rose by 61 per cent and its net revenues were up 13 per cent from the trailing quarter.

Revenues from clients other than GE grew 28 per cent and around 83 per cent of Genpact’s revenues for the quarter came from business process services, up from 78 per cent for the first quarter of 2008. Revenues from IT services were about 17 per cent of total revenues for the first quarter of 2009. The BPO has around $348 million (Rs 1,705 crore) in cash and cash equivalents, short term investments and short term deposits.

As of March 31, 2009, Genpact had about 36,500 employees worldwide.
Giving the revenue guidance, Bhasin said, “We expect annual revenue growth of 10- 15 per cent, from a base of $1.04 billion (Rs 5,096 crore) in 2008, and adjusted income from operations margin of 16-17 per cent.”