ExlService Q3 profit up 7.69 per cent at $8.4 mn

NEW DELHI: Outsourcing company ExlService Holdings today reported 7.69 per cent jump in profit to USD 8.4 million for the third quarter ended September 30, 2011, driven by volume growth across business lines.

The company had a profit USD 7.8 million in the same quarter of the previous fiscal, Nasdaq-listed ExlService Holdings said in a statement.

Revenues for the third quarter rose 47.9 per cent to USD 100 million from USD 67.6 million in the year-ago period.

"EXL experienced record quarterly revenues driven by volume growth across business lines and the inclusion of a recent acquisition in our financial results. Revenues were USD 100 million, an increase of 48 per cent year-over-year, of which 15 per cent was organic growth," ExlService Holdings CFO Vishal Chhibbar said.

Outsourcing services revenue for the quarter ended September 30, 2011, was USD 83.2 million while transformation services revenue stood at USD 16.9 million.

"EXL's Q3 results were marked by strong growth and profitability. Our intent is to stay ahead of the market by pursuing an engagement model that generates a positive business impact for our clients beyond the traditional measures of efficiency and productivity," ExlService Holdings President and CEO Rohit Kapoor said.

The company has given a revenue guidance of USD 354 million-USD 358 million for 2011.

"We are increasing our calendar year 2011 revenue guidance to the upper end of the USD 354 million to USD 358 million range, in spite of a foreign exchange headwind that will negatively impact our revenues in the fourth quarter by approximately USD 3 million," Chhibbar added.

As of September 30, ExlService had about 17,900 employees.

During the quarter, ExlService completed an underwritten public equity offering of 4 million shares of common stock.

It repaid all outstanding borrowings under the revolving credit facility using internally generated cash and the net proceeds from the offering of about USD 21.6 million.