Genpact's Q1 net up 41% 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 March 31, 2009, up 52 per cent from $19.7 million (Rs 96.5 crore) in the corresponding quarter last year.

Net revenue for the quarter was up 13 per cent year-on-year to $265.8 million (Rs 1,302.4 crore), from $234.6 million (Rs 1,150 crore).

“We anticipated some of the economic challenges last year and were able to put in place aggressive cost reduction measures, which contributed to a 374-basis point improvement in our adjusted income from operations margin for 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, president and CEO, Genpact.

The company’s foreign exchange gain for the quarter was $2.8 million (Rs 13.7 crore). Sequentially, Genpact’s net income rose 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. Around 83 per cent of Genpact’s revenue for the quarter came from business process services, up from 78 per cent for the first quarter of 2008. Revenues from IT services were approximately 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 on March 31, Genpact had approximately 36,500 employees worldwide.

On earnings, Bhasin said, “We expect an annual revenue growth of 10-15 per cent, from a base of $1.04 bn (Rs 5,096 crore) in 2008, and an adjusted income from operations margin of 16-17 per cent.”