The Hindu Business Line : Rising rupee stunts iGate growth in Q3

THE appreciating rupee against the dollar has resulted in flat growth rates for software services firm iGate Global Solutions Ltd. The company recorded a 0.4 per cent increase in revenues at Rs 143.4 crore for the third quarter ended December 31, 2004 as against Rs 142.8 crore in the same period the previous year. On a quarter-on-quarter basis, it recorded a 4 per cent dip fromRs 149.3 crore in revenue for Q2.Attributing the dip to the appreciating rupee value, Mr Phaneesh Murthy, CEO, iGate, said, "the sequential fall is due to the impact of foreign exchange translation charge as a result of a weak dollar. However, we expect to show growth over the coming quarters since some of our project realisations will commence then."

The company posted a net profit at Rs 15.8 crore for the Q3 of 2004-05, recovering from a loss of Rs 2.6 crore posted during the corresponding quarter the year before. During the second quarter of 2004-05, the company had posted PAT of Rs 3 crore.

Mr Phaneesh Murthy said the company's Integrated Technology Operations (iTOP) model has started to help win new clients. During the third quarter, iGate added 15 new clients including two five-year contracts from firms operating in the mortgage banking and finance & accounting verticals.

With plans to scale up human resources and infrastructure, the company has invested $16 million in infrastructure expansion. Currently, iGate has 3,700 employees and it plans to increase headcount by 250-300 people. "The challenges we are going to face moving ahead is to train new recruits on the iTOP model wherein they can do more than provide mere software services," he added.

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