iGATE earnings double in Q1, revenue up 29%

Nasdaq-listed IT services company iGATE today said net income for the quarter ending March has more than doubled to $11.6 million over the same period a year ago.

"Net income more than doubled to $11.6 million compared to $5 million registered in the same period last year, a rise of 132 per cent," iGATE Chief Executive Officer Phaneesh Murthy said.

Revenue was up 29 per cent, at $57.9 million, for the quarter ended March 31, 2010, compared to $44.8 million during the same period last year, he added.

IGATE Chief Financial Officer Sujit Sircar said: "While we had an excellent performance in Q1 and expect revenues to grow, margins are likely to be under pressure due to increased hiring, rupee appreciation and wage inflation. Our cash and cash equivalents and short-term investments crossed the $100 million mark."

The company ended Q1 with 7,357 employees, a net addition of 447 employees during the quarter. Seven new customers were added by iGATE during the quarter.

The company's gross profit margin was 40.1 per cent compared to 35.9 per cent in the corresponding quarter last year. Its net margin was 20.1 per cent as against 11.2 per cent in the corresponding quarter last year.

"Our growth in revenue reflects a good performance coming on the back of a recovery in our key segments. We have strengthened our leadership team with several strategic hires to drive revenue growth and build solutions for the future," Murthy said.