After a strong fourth quarter, Genpact Ltd expects a strong 2012 with around 15 per cent rise in its top line at $1.84-1.88 billion.
“Our relationships with existing clients are strong and expanding, our pipeline is healthy and client decision cycle times appear to be stable. We will continue to invest for growth and expect adjusted income from operations margin in 2012 of 16-16.5 per cent,” Mr N.V. Tyagarajan, Genpact's President and CEO.
The BPO major has posted a 33 per cent rise in its net income for the fourth quarter ended December 31, 2011 (calendar year 2011) at $61.1 million against $46 million in the corresponding period the previous year. Revenues in the quarter were up 30 per cent at $442.7 million.
The strong growth was a result of better reorganisation of its front-end workforce and increased revenues from global clients, Genpact said.
“We also generated record cash flows. In 2011, we expanded and refocused our front-end teams by key industry verticals to better serve clients' needs. We now have half of our leadership team closer to clients, which reflect our global footprint. We accelerated investment in new products and services, and we added substantial domain expertise through acquisitions,” said Mr Tyagarajan said.
He added that the number of clients in the category $1-5 million of annual revenues grew the fastest, to 121 from 64 at the end of 2010.
Full-year net up 30%
For the full year 2011, the net income was up 30 per cent at $184.3 million, while revenues were higher by 27 per cent to $1.60 billion. Net income margin for 2011 was 11.5 per cent, up from 11.3 per cent in 2010, while the effective tax rate also went up to 27.7 per cent(19.4 per cent).
As of December 31, 2011, Genpact had approximately 55,400 employees worldwide, an increase from approximately 43,900 at the end of 2010. The attrition rate for the entire year, measured from day one, was 30 per cent, down from 31 per cent in 2010.