iGATE Q3 net jumps 80%

SCORECARD

IT & BPO services provider iGATE Global Solutions has registered Rs 29 crore net profit during Q3 2007-08 "" a 80 per cent growth over the corresponding period in the last financial year.

The company attributed the growth in profit to better average rate realisation from its clients and the gradual shift to the integrated Technology and Operations (iTOPS) model of business.

Under the iTOPS model, customers will be offered IT services, software development and maintenance of IT operations as part of a package deal.

It also managed to reduce direct costs from Rs 144.9 crore (corresponding quarter last year) to Rs 137.6 crore during the quarter under review by hiring more trainees.

During Q3 FY08, the company recruited 300 personnel, majority of them being freshers and trainees. It also earned Rs 3.4 crore from exchange gains.

"We could improve the profit margin through a combination of factors such as better average rate realisation, wider adoption of iTOPS model and reducing direct costs. We also bagged three significant clients this quarter," iGATE CEO Phaneesh Murthy said.