iGate posts net profit of $14.3 million

BANGALORE: With business from Patni Computer Systems adding to the topline, iGate Corporation on Thursday reported over three-fold year-on-year increase in revenues for the quarter ended September 30, 2011. Net profit surged sequentially but remained flat compared to the same quarter last year.

Nasdaq-listed iGate corporation, which acquired India's sixth-largest software exporter Patni Computer Systems earlier this year, had seen its profits decline by more than half in the previous quarter on account of acquisition-related costs.

Announcing the results, Phaneesh Murthy, chief executive officer of iGate, said : "We expect pricing to be relatively stable for the year." However, he hinted that some pricing pressure might develop in the future on economic uncertainty in the developed world.

Sequentially, net profit more than trebled to $14.3 million from $4 million in the previous quarter. Interest expenses hit the company's net income by $19.5 million this quarter.

Revenues, at $265.7 million, were up 255.2% from $74.8 million in the year-ago quarter. Sequentially, revenue grew 56% from $170.4 million in the quarter ended June 30.