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iGate revenue crosses $1 bn in fiscal 2012

Its revenues for the full year rose 38 per cent to $1.07 billion from $779.6 million in previous fiscal.

twitter-logoPTI | January 18, 2013 | Updated 02:13 IST

NASDAQ-listed iGate on Thursday said its net income more than doubled to $32.2 million in the October-December quarter of 2012 on the back of corporate restructuring and strong customer additions.

This is against net income of $15.3 million in the year-ago period.

"It is not a great quarter from revenue perspective but a stellar one from net income perspective. Our corporate restructuring programme has helped us immensely in increasing our net income," iGate CEO Phaneesh Murthy told reporters on a conference call.

The company's revenues were impacted by the investments it made in "re-orientation" of its sales force, coupled with reduced client spending.

"In the event of integration and consolidation, we have had to do quite a bit of unlearning and re-orientation to our sales force to be able to sell on an outcomes based proposition. Our investments in sales and marketing engines during the last two quarters should yield us results in 2013," he added.

The company's revenues for the reported period stood at $271.6 million, up marginally from $267.7 million in the fourth quarter of 2011.

The company follows January-December fiscal year.

In 2011, iGate bought about 63 per cent stake in Patni Computer, India's sixth largest information technology firm, for about $921 million (Rs 4,188 crore).

iGate Chief Financial Officer Sujit Sircar said: "We successfully carried out the delisting process in India in 2012 and further completed the consolidations of our US subsidiaries."

For the fiscal 2012, net income of the software services firm stood $97.2 million, up 89 per cent from $51.5 million in 2011.

Its revenues for the full year rose 38 per cent to $1.07 billion from $779.6 million in previous fiscal.

"The company added 14 new customers during the fourth quarter, including seven Fortune 1,000 companies," Murthy added, adding that the order pipeline is looking strong.

iGate added 1,021 employees during the year, taking its headcount to 27,554 people.

As of December 31, the company's cash/investment stood at over $600 million, Sircar added.

At the end of 2012, iGate's total debt stood at $1.1 billion, including a long-term loan of $770 million through US bonds and a short-term loan of $265 million from a Singapore bank.

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