Nasdaq-listed iGATE has reported strong quarterly results in the third quarter ended September 30, driven by healthy outsourcing orders and a depreciating rupee.
The company posted net profits of $31.9 million or a 12.7 per cent growth in the same period last year. On a sequential basis, iGATe saw profits 6.3 per cent growth.
Similarly, revenues for the third quarter went up 8.2 per cent to $293.4 million when compared to the same period last year and 3.6 per cent on a sequential basis.
Commenting on the results, Ashok Vemuri, President and CEO, said: “I am pleased with our ability to accelerate revenue growth and with the quality of deals we are winning that are longer-term in nature.”
The depreciating rupee against the US dollar helped iGATE in the quarter and generated $86 million of cash, which comes as good news to investors as the company is staring at a debt of around a billion dollars, after the acquisition of Patni, opine analysts.
Further, iGATE added eight new customers during the quarter including two Fortune 1000 companies across a variety of sectors such as banking and financial services, pharmaceutical, energy in the US and Europe.
The company has seen a change in the top recently with former Infosys Head of Americas and Board Member Ashok Vemuri taking over the helm from Phaneesh Murthy who was forced to quit for failing to disclose an alleged relationship with a subordinate. IT analysts widely believe that exporters are expected to post another quarter of good results.