The Hindu Business Line : Genpact Q3 net income up 27%

New Delhi, Nov. 13 BPO major Genpact Ltd today registered a 27 per cent year-on-year rise in net income for the third quarter at $16.3 million, although the net income margin reduced slightly due to certain tax charges.

On the back of strong growth and good demand from clients, the company has upped its revenue guidance for the year from an increase of 28-30 per cent to an increase of 30-32 per cent, and expects the adjusted income from operations margin to remain relatively constant.

“The net income margin for the third quarter decreased slightly to 7.6 per cent from 7.9 per cent in the third quarter of 2006, primarily due to certain tax charges, and increased from 3.5 per cent in the second quarter of 2007,” Genpact said in a statement here. Driven primarily by global client revenue growth, the third quarter revenues stood at $214.6 million, up 32 per cent compared to the year-ago period.

“Global client revenues grew 78.6 per cent this quarter compared to the third quarter of 2006. Revenues from GE increased 10.6 per cent this quarter compared to the third quarter of 2006. Global clients represented 43 per cent of total revenues for the quarter,” it said.

Mortgage services biz

The company said that the US mortgage and credit market turmoil did not have a significant adverse impact on its overall results. “Genpact’s mortgage services business has seen a small revenue decline as processing volume has diminished from clients but revenues from its mortgage services business do not impact Genpact’s overall performance and has been more than offset by growth in other areas,” the statement said.

The company’s adjusted net income stood at $27.8 million for the quarter.

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Genpact Q3 net income up 27%