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Genpact net profit surges 40%

About 78.1 per cent of Genpact's revenues for Q2 FY'11 came from business process management services, compared to 85.9 per cent for the second quarter of 2010.

twitter-logo PTI   New Delhi     Last Updated: August 3, 2011  | 20:45 IST

BPO major Genpact on Wednesday posted 40.1 per cent jump in net income at $39 million for the quarter ended June 30, 2011.

The net income attributable to Genpact shareholders stood at $27.8 million in the second quarter of 2010, Genpact said in a statement.

"Genpact delivered a great second quarter, with strong growth in revenues, adjusted operating income, earnings per share and cash flows. Genpact stand-alone revenues, excluding Headstrong revenues, grew 15 per cent over the prior year quarter," Genpact President and CEO NV Tyagarajan said.

Revenues stood at $397.6 million for Q2 FY2011, up 29.3 per cent from $307.6 million in Q2 of 2010.

For the year ahead, Tyagarajan remained confident of continuing its growth despite ongoing concerns in the global economy.

"We continue to expect full year revenue growth of 23-25 per cent and our adjusted income from operations margin to be in the range of 16-16.5 per cent...Despite ongoing concerns in the global economy we now expect to be at the higher end of both ranges," he said.

Revenues from clients other than GE, referred to as global client revenues (contributing about 69.2 per cent to Genpact's revenues) grew 44.1 per cent.

About 78.1 per cent of Genpact's revenues for Q2 FY'11 came from business process management services, compared to 85.9 per cent for the second quarter of 2010.

Revenues from IT services were about 21.9 per cent of total revenues for the second quarter of 2011, up from 14.1 per cent for the second quarter of 2010, including IT services revenues attributable to Headstrong.

Earlier this year, Genpact acquired consulting and IT services firm Headstrong Corporation for $550 million.

"Integration of the Headstrong acquisition, which closed on May 3, is going well. This quarter we increased the number of clients contributing USD 1-5 million in annual revenues to 103 (including 25 from Headstrong), from 52 in the prior-year quarter, giving us a great runway for future growth," Tyagarajan said.


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