iGate net up 61%

Nasdaq-listed IT services firm iGate, which has major operations in India, has posted a 60.67 per cent jump in its net profit to $14.3 million in the third quarter ended September 30, last, when compared with the same quarter a year ago. The company's revenues at $74.8 million grew by 53 per cent on a year on year basis, driven by a mix of new customer wins and tractions for its existing clients.

“Our strong revenues, margin growth and recent client wins are a positive affirmation that our business model and messaging is resonating well with our customers,” CEO Phaneesh Murthy said in a statement.

The company reported earnings of $14.3 million, or 25 cents a share, compared with $8.9 million, or 16 cents a share, a year earlier. The company added five new clients during the quarter.

The California-headquartered company which counts Royal Bank of Canada and General Electric among its biggest customers, said it was exploring a possible sale of 10 million shares and raising $100 million of debt. As of September 30, 2010, iGate's cash and cash equivalents and short-term investments stood at $120.8 million, an increase of about 25 per cent over the same as of December 31, 2009. The company said that it was exploring acquisition opportunities and hoped to close this in 2011.

Sujit Sircar, CFO, iGATE said, “Our margin growth continues to be strong. We are able to translate our growing top line into a significant improvement on the bottom line.”

iGate had 8,278 employees as of September 30, 2010, a net addition of 120 employees during the quarter