The Hindu Business Line : iGATE posts Q1 net of Rs 11 lakh

IGATE Global Solutions Ltd, has posted, on consolidated basis, a net profit of Rs 11 lakh (after minority interest) for the quarter ended June, compared to Rs 7.71 crore during the corresponding previous quarter.

Total income for the period under review was Rs 143.85 crore, marginally lower than Rs 143.76 crore last year.

As a standalone entity, iGATE posted a net loss of Rs 3.54 crore for the quarter ended June 30, 2004 compared to net profit of Rs 6.34 crore during the corresponding previous period.

Total income was down at Rs 93.96 crore (Rs 103.12 crore).

Mr Phaneesh Murthy, CEO, iGATE Global, said: "Over the last three quarters we have focused on building our operational efficiencies and execution excellence. Progress is steady with the onsite-offshore ratios improving quarter-on-quarter, upward trend in operating profits and our information systems in place, the time is right for us to focus on our sales engine."

iGATE increased operating profits by 16.4 per cent to Rs 4.4 crore.With a change in its onsite-offshore ratio in favour of offshore, the company saw an 8.1 per cent increase in offshore volumes, a key contributor to the increase in operating profits, according to Mr Murthy. The company's onsite-offshore ratio stood at 46:54 compared to 48:52 in the last quarter.

"The increase in operating profits is heartening, but we have not yet hit the exponential growth curve," Mr Murthy said.

"The company is shedding some of its low-margin business such as subcontracting."

iGATE added six new clients, of which four are Fortune 1000 companies.

HP's Imaging and Printing Group selected iGATE as a preferred global vendor for US, Asia Pacific and Europe.

Mr Murthy said that the integration of various acquisitions that the company made in the previous quarters was yet to be completed, and added that the company's BPO operations was still a "sub-critical mass".

"While there is an overall improvement in the market, the deal sizes are still not big enough for the exponential growth," he said.

GE, the largest client, accounted for 42 per cent of iGATE's revenue during the quarter under review.

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