The Hindu Business Line : iGATE posts 4-fold rise in Q2 net

IGATE Global Solutions Ltd said its net profit grew by 368 per cent to Rs 3.04 crore for the second quarter ended September 2004, against Rs 65 lakh in corresponding previous quarter.

Revenues for the quarter grew by 2.7 per cent to Rs 149.36 crore (Rs 145.5 crore in Q2 last fiscal).

Commenting on the results, the iGATE CEO, Mr Phaneesh Murthy, said the company continued to move work offshore and exited from low margin onsite business, which resulted in increased gross margins.

Post-integration and restructuring phase, the company continued to focus on efficiency and was inching towards the targeted onsite-offshore mix of 40:60 by the year-end, he added. The onsite-offshore revenue mix stood at 43:57 for the second quarter against 46:54 in previous quarter.

iGATE added 12 new clients during the second quarter of which five are Fortune 1000 companies, Mr Murthy said adding "Our goal is to have 8-10 Fortune 1000 clients at strategic level". GE, the single largest client, accounted for 41 per cent of total revenues for which iGATE has started doing consulting work, Mr Murthy said.

The integrated technology operations model was working well for the company and "every piece of the IP we have invested in has started paying off," he said. "If you invest in IPs, you'll get the deals," he said. The IPs, developed by the company in areas of integrated data analytics and data quality management, helped command a premium of 10-12 per cent and accounted for 15-16 per cent of the company's business during the quarter, he said.

The price outlook, Mr Murthy said, was bullish as IT budgets were expected to go up by 1-2 per cent next year. This boards well for the companies operating from India and the industry can see better pricing points going forward, he said.

Meanwhile, the company received the shareholders approval for issuing 5.5 per cent of iGATE Global's equity to the promoters of Quintant, who will be investing Rs 39 crore in IGS, said Mr Ramachandran, Chief Financial Officer.

More Stories on : Software | Financial Performance

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

Stories in this Section
Hero Honda Q2 net up 24 pc

Mastek Q1 income up 30%

Aztec Q2 net jumps 492 pc

iGATE posts 4-fold rise in Q2 net

UTI Bank Q2 net down 28 pc