Genpact Q2 net up 28% to $63 mn; inks $1.15 bn credit facility

NEW YORK: BPO major Genpact has reported a 28 per cent rise in its net profit at $62.70 million (around Rs 400 crore) for the second quarter ended June 30.

The US-based firm, which follows January-December fiscal, had posted a net profit of $48.98 million in the same period last year, it said in a statement.

Its revenues rose by 8.53 per cent to $609.53 million in April-June quarter of 2015 from $561.61 million in the year-ago period.

The company said it has entered into a five-year, $1.15 billion credit facility that consists of an $800 million term loan and a $350 million revolving credit facility.

"Proceeds from this financing were largely used to repay all amounts outstanding under Genpact's prior $925 million credit facility," it said.

Genpact has maintained its revenue guidance for the current fiscal in the range of $2.46-2.50 billion.

Genpact President and CEO N V Tyagarajan said: "We are very pleased with our second quarter results. Despite significant foreign exchange headwinds, our outlook for full year revenues remains unchanged, driven by solid Global Client growth."

He added that recent trends in the marketplace are forcing companies to rethink the way they do business, causing them to leverage new business models and be more disruptive in their industries.

"This provides us with a terrific opportunity to work with clients through their transformation journeys," he said.

Revenues from Global Clients represented about 81 per cent ($495 million) of Genpact's total revenues, with the remaining coming from GE ($114.5 million).

GE revenues decreased 4 per cent from the second quarter of 2014.

For the 12-month period ended June 30, the number of client relationships generating annual revenue over $5 million increased to 102 from 85 as of June 30, 2014.

The NYSE-listed firm's cash from operations was $90.3 million in the second quarter of 2015, up 15 per cent from $78.8 million in the year-ago period.

Genpact had about 69,800 employees worldwide, up from around 66,900 as of June 30, 2014. Its attrition rate for the quarter was about 29 per cent compared with 26 per cent for the same period in 2014.

Genpact said it incurred a $10.1 million charge during the second quarter of 2015 related to the write-off of upfront fees for its previous facility.