Genpact posts 13% growth in Q3 net income at $133 million

Global professional services and business process management firm Genpact has posted a 13% year-on-year (YoY) increase in net income, which stood at $133 million, for the third quarter of the year.

The company follows a January to December financial year.

Total revenue was $1.21 billion in the quarter ended September, up 7% YoY, both on an as reported and constant currency basis. Gross profit was up 7% YoY at $431 million, with a 35.6% margin, the company said on Thursday.


For the fourth quarter, Genpact forecasts revenue in the range $1.222 billion to $1.233 billion, representing 6.6-7.6% YoY growth, with constant currency growth projected at 5.8-6.8%. Gross margins are expected to remain flat at 35.6%.

For the full year 2024, revenue is expected to grow 5.9-6.1% as reported or 6-6.2% on a constant currency basis, in the range $4.740 billion to $4.751 billion.

“We delivered strong results again this quarter, with accelerating revenue growth, driven primarily by client trust in our ability to innovate across data, tech and AI," said Balkrishan ‘BK’ Kalra, Genpact's president and CEO. "As a result, we are increasing guidance with 6% revenue growth now expected in 2024, up from 2% in the prior year with continued discipline driving adjusted EPS growth faster than revenue for the fourth year in a row."

In the September quarter, the company’s revenue from data, tech and AI was $569 million, up 9% YoY, representing 47% of total revenue. Revenue from digital operations was $642 million, up 5% YoY, contributing 53% of total revenue.

The company forecasts digital operations revenue to grow about 4% and data-tech-AI revenue to grow 9% YoY on a constant currency basis in the quarter ending December, and 6% and 6.2% respectively in the full year.

“Our recent AI Day was another important milestone, bringing together more than 100 clients and partners to demonstrate our unique combination of data, domain, and advanced technologies, including AI,” said Kalra. “Moving forward, we will build on this strong foundation, leveraging Gen AI and other advanced technologies to drive superior value for clients.”

Diluted earnings per share was $0.74, up 16% YoY. Genpact repurchased approximately 1.9 million common shares during the quarter for total consideration of approximately $75 million at an average price per share of $38.72, the company said.