iGate profit up 54%

iGate, the Nasdaq-listed information technology services company, reported a net profit of $17.9 million for the first quarter ended March 31, an increase of 54 per cent when compared with the same period last year. The company follows a calendar year (January-December) and saw a 31 per cent increase in revenue to $75.8 mn in the quarter, compared to last year.

However, in sequential terms (when compared with the trailing quarter), net profit dropped 65 per cent and revenues by six per cent. The company said this was due to a delay in clients' budgets.

“(This) created softness in the market, exacerbated by our focus on the Patni acquisition, creating a sequentially weak quarter for the company,” said Phaneesh Murthy, CEO.

During the quarter, the company added four clients and employees numbered 8,244. The US-based firm had, in January, acquired a majority stake in Patni Computer Systems for $1.2 billion, in one of the largest deals in the Indian IT sector. The company said the acquisition was expected to be completed shortly.

“The process of acquiring Patni is on track and we expect the transaction to be completed shortly. We have raised $770 mn through a bond issue to fund the acquisition. From the calender year second quarter, we will be reporting consolidated financials for iGate," said Sujit Sircar, Chief Financial Officer.