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iGate's net profit more than doubles

 IT services firm iGate has posted its highest quarterly net profit jump of 136 per cent at $30 million in the quarter that saw the unceremonius exit of its former CEO Phaneesh Murthy.

twitter-logo PTI        Last Updated: July 18, 2013  | 00:28 IST

 IT services firm iGate has posted its highest quarterly net profit jump of 136 per cent at $30 million in the quarter that saw the unceremonius exit of its former CEO Phaneesh Murthy.

iGate's net profit stood at $12.7 million in the April-June quarter of 2012.

Revenues for the second quarter of 2013 increased six per cent to $283.3 million from $268 million in the same period last year.

"We had an absolutely fantastic quarter. It was the best quarter in iGate's history. We had revenues of $283 million, which is the highest revenue number in our history and have grown net income by 136 per cent. We closed orders worth over $600 million, which is again a record number," iGate CEO Gerhard Watzinger told reporters.

Within these, there were three significant multi-year contracts each valued at $100 million or greater, he added.

"We have reached out pretty much all of our over 300 customers. The general feedback was there were no customer who said the decision was not correct...We have not seen any impact (of Murthy's exit). On the contrary, large deals that we closed in the majority of the booking that we had were post his exit, including MetLife," he said.

On May 20, iGate announced that it had sacked Murthy. The Board's decision was made as a result of an investigation by outside legal counsel, engaged by the Board, of the facts and circumstances surrounding a relationship Murthy had with a subordinate employee and a claim of sexual harassment.

Since then, iGate has been slapped with class action lawsuit in the US filed on behalf of persons or entities who purchased or acquired securities of iGate between March 14, 2012 and May 21, 2013.

"It is pretty normal in the US to receive a class action suits in a situation like this. The Board has been very transparent with all activities and has involved appropriate legal counsel. We believe there is absolutely no merit in this class action suit and we are pretty positive looking into the future," Watzinger said.

iGate has formed a search panel for appointing the new CEO. "We do have a committee from the Board that is shortlisting candidates. We expect to have this done before fall," iGate CFO Sujit Sarkar said.

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