iGate Corporation Q4 net profit up 14.6 per cent at $38 million

NEW DELHI: Outsourcing firm iGate Corporation on Tuesday reported a 14.6% percent increase in fourth quarter profit to $38.0 million, compared with $33.1 million in the year-ago period.

Net revenues at the United States-based firm, which follows the January-December as fiscal year, rose 10.7% percent to $331.5 million in the quarter ended December 2014.

“We are satisfied with our fourth quarter and full year 2014 results…Our digital practice will be a key focus area for us in 2015 and we will continue to leverage our ITOPS solutions,” iGate President and Chief Executive Ashok Vemuri said.

However, gross margin fell 34.8%compared to 39.8% in the fourth quarter of 2013.

“We are satisfied with the cash flow position of the company and the de-leveraging of the balance sheet during the year…However, we continue to see foreign exchange volatility that needs to be monitored and observed carefully,” said Chief Financial Officer Sujit Sircar.

In fiscal 2014, iGate reported a fall of 15.2% in net income at $110.0 million from $129.8 million a year earlier.

Annual net revenue rose 10.2% to $1.27 billion compared with $1.15 billion during the same period in 2013.

As of December 31, 2014, iGate had 33,484 employees.

The company added nine new customers in the fourth quarter. Among the key contracts it won during the quarter were a North America-based multinational banking and financial holding company, an electronics manufacturing services company and a large investment bank and institutional securities firm.