Genpact Q3 net up 21 per cent at $40 million

BPO major Genpact reported a growth of 21.4% in net income to $40.1 million for the third quarter ended September 30, 2010 on strong order book.

By PTI | Oct 28, 2010, 04.03 PM IST

NEW YORK: BPO major Genpact on Thursday reported a growth of 21.4 per cent in net income to USD 40.1 million for the third quarter ended September 30, 2010 on strong order book.

The company had a net income attributable to shareholders at USD 33.1 million in the same quarter ended September 2009, Genpact said in a statement.

"We grew revenues, net income, earnings per share, and operating cash flow on both a sequential and year-over-year basis. We won 20 new client logos up from 14 in the previous quarter and Smart Enterprise Processes (SEPSM) was instrumental in many of these wins. We have a strong sales pipeline that has grown by 30 per cent year-over-year," Genpact President and CEO Pramod Bhasin said.

The outsourcing company's revenues rose to USD 321.6 million in the July-September quarter of the year from USD 284.4 million in the third quarter of 2009. Thus registering a growth of 13.1 per cent.

"Although our revenue growth this quarter was slower than we expected, this was primarily due to client delays in transitioning signed contracts into full production. We expect to realize the delayed revenue in the future," Bhasin added.

As on September 30, 2010, Genpact had about 43,300 employees worldwide, an increase from about 37,700 as of September 30, 2009.

Bhasin continued,"While our results for the quarter are good, and our outlook for demand for our services continues to be positive, we have had to recalibrate our full year 2010 guidance. We now estimate 2010 revenue growth of 12 per cent to 13 per cent and an adjusted income from operations margin of 16 per cent to 16.3 per cent, with a strong foundation for continued growth in 2011."

During the quarter, the company added 41 new clients, up from 35 such relationships at the end of 2009.

Genpact generated USD 68 million of cash from operations in the third quarter of 2010, up from USD 55.7 million of cash from operations in the third quarter of 2009.

Approximately 86.3 per cent of Genpact's revenues for the quarter came from business process management services, while revenues from IT services were approximately 13.7 per cent of total revenues for the third quarter of 2010.

Revenues from Global Clients, which now represent approximately 61.9 per cent of Genpact's total revenues, with the remaining 38.1 per cent of revenues coming from GE.

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