The Hindu Business Line : Genpact Q3 profit surges 106% on expense leverage, interest income

New Delhi, Nov. 8 BPO major Genpact Ltd has recorded a 106 per cent year-on-year rise in its net income for the third-quarter ended September 2008 to $33.6 million, on the back of strong selling, general & administrative (SG&A) expense leverage, and due to certain interest income.

In its outlook, the company said that it continues to expect the full year (2008) revenue to grow by 26-28 per cent from $823 million in 2007 and adjusted income from operations margin to improve by 80 to 100 basis points to 17.1-17.3 per cent.

“However, in light of the current environment, we expect that both measures will likely be at the lower end of the range,” the company said in a statement.

Revenues rise 26%

For the third quarter, Genpact’s revenues at $270.8 million represented a growth of 26 per cent over the year-ago period. “We had a good leverage on the SG&A costs, which grew 21 per cent in comparison to the revenue growth of 26 per cent. Also, the net income growth was partially due to the interest on cash on our balance-sheet,” the Genpact President and CEO, Mr Pramod Bhasin said.

The company’s net income margin for the third quarter of 2008 was 12.4 per cent, up from 7.6 per cent in the third quarter of 2007. The adjusted income from operations increased 39 per cent to $49.5 million compared with the same period the previous year.

“We completed a good third quarter, despite the dramatic changes in the global economy that began several months ago. Notable highlights of the quarter included 61 per cent growth in global client revenues within our overall revenue growth of 26 per cent and a 166 basis point improvement in adjusted operating income margin year over year,” Mr Bhasin added.

GE revenues for the third quarter of 2008 were flat compared with the third quarter of 2007. Organic GE revenue growth was six per cent this quarter. This excludes revenue from businesses divested by GE in 2007, all of which Genpact continues to serve and whose revenues are now included in global client revenues.

Clients

As at the end of the third quarter of 2008, 26 clients each accounted for over $5 million of Genpact’s revenues in the last twelve months. Of those, four clients each accounted for $25 million or more of Genpact’s revenues in the last twelve months.

Related Stories:
Genpact, NIIT join hands to offer BPO training programs

More Stories on : Financial Performance | Outsourcing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Genpact Q3 profit surges 106% on expense leverage, interest income