Genpact Q1 net up 28% at $36 million
NYSE-listed BPO firm Genpact on Thursday upped its sales growth forecast for the year to 23% from 13% announced last quarter.
By OUR BUREAU | Updated:
NEW DELHI: NYSE-listed BPO firm Genpact on Thursday upped its sales growth forecast for the year to 23% from 13% announced last quarter, buoyed by its recent acquisition of IT firm Headstrong and an improved market for outsourcing in the US. The BPO firm, which counts Wachovia, Wells Fargo and GE as top clients, posted a 28% rise in net profit to $36 million for the first quarter ended March 31. Sales of $331 million for the quarter also beat street expectations. Analysts were expecting sales of $326 million.
"Revenues from business process management services continue to be our growth engine," said Pramod Bhasin, Genpact's President and CEO. Revenue growth from GE, Genpact's largest client, almost remained flat at 0.7% from the same period last year. GE contributes about 34% to Genpact's sales.
Genpact counts BPO firms WNS and EXL Service as its competitors, which have been on the block. Genpact on the other hand is trying to integrate IT services into its portfolio, to up its sales growth stagnated by flattish contribution from its largest client GE. Genpact's sales had grown 12% last year compared to the Indian BPO industry's growth of about 15%.
IT companies in India, however, grew about 27% last year. The company bought Noida-based IT firm Headstrong for $550 million last month, whose sales will be accounted for in next few quarters. Genpact will gain clients like Goldman Sachs and Morgan Stanley with the buyout.
Current revenues from IT services for Genpact were about 13% of total revenues for the first quarter of 2011. About 87% of Genpact's revenues for the quarter came from business process management services, up from 85% for the first quarter of 2010.
An improved market for outsourcing has also led to rise in attrition for BPOs. Genpact's employee attrition rate for the quarter was 29%, up from 23% for the same period in 2010. As of March 31, 2011, Genpact had about 45,500 employees worldwide, an increase from 41,300 as of March 31, 2010. The firm's revenue per employee increased from $29,900 in the first quarter of 2010 to $30,700 in the quarter ending March this year. The $76-billion Indian IT-BPO industry is projected to grow about 18% this year.
"Revenues from business process management services continue to be our growth engine," said Pramod Bhasin, Genpact's President and CEO. Revenue growth from GE, Genpact's largest client, almost remained flat at 0.7% from the same period last year. GE contributes about 34% to Genpact's sales.
Genpact counts BPO firms WNS and EXL Service as its competitors, which have been on the block. Genpact on the other hand is trying to integrate IT services into its portfolio, to up its sales growth stagnated by flattish contribution from its largest client GE. Genpact's sales had grown 12% last year compared to the Indian BPO industry's growth of about 15%.
IT companies in India, however, grew about 27% last year. The company bought Noida-based IT firm Headstrong for $550 million last month, whose sales will be accounted for in next few quarters. Genpact will gain clients like Goldman Sachs and Morgan Stanley with the buyout.
Current revenues from IT services for Genpact were about 13% of total revenues for the first quarter of 2011. About 87% of Genpact's revenues for the quarter came from business process management services, up from 85% for the first quarter of 2010.
An improved market for outsourcing has also led to rise in attrition for BPOs. Genpact's employee attrition rate for the quarter was 29%, up from 23% for the same period in 2010. As of March 31, 2011, Genpact had about 45,500 employees worldwide, an increase from 41,300 as of March 31, 2010. The firm's revenue per employee increased from $29,900 in the first quarter of 2010 to $30,700 in the quarter ending March this year. The $76-billion Indian IT-BPO industry is projected to grow about 18% this year.
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