iGATE posts Rs 23 cr 4th quarter net

BANGALORE: iGATE Global Solutions, the Bangalore-based mid-tier IT services company has reported a net profit of Rs 22.6 crore, on a consolidated basis, for the fourth quarter of FY07. It has also achieved its targeted operating margins of 15% for the fourth quarter of FY07 against 9.6% in Q4 of FY06.

However, it has taken a major hit in its BFSI vertical with the meltdown of non-prime mortgage services market in US. The mortgage segment accounts for 10% of its revenues and it is expecting the sluggishness to continue in the first quarter of FY08.

Phaneesh Murthy, CEO, iGATE, addressing mediapersons here on Wednesday said the demand environment has been robust and there has been no signs of any slowdown in the US market, adding, “We expect 2% rise in our clients IT spending.”