Healthy demand for business process outsourcing (BPO) made Genpact Ltd, India’s largest BPO firm, post a 21.4% rise in net profit at $40.1 million (around Rs.180 crore) for the three months ended 30 September. Revenue rose 13.1% at $321.6 million year-on-year. Net profit was up 44.2% against $27.8 million reported in the June quarter.
The company, which counts the US market and banking and financial services as its biggest sectors, said adjusted income from operations margin declined to 15.4% compared with 18.9% a year ago.
President and chief executive Pramod Bhasin said this was due to unforeseen delays by clients in transitioning signed contracts to full production, its investments in sales staff and in building technologies.
“These client delays have affected margins in the near term; because of the upfront investments, we normally make in transitioning processes from the client to us,” he said. “We have already taken aggressive actions to align our costs with these revised schedules and reset our cost base.”
Genpact has trimmed 2010 revenue growth expectation to 12-13% from the earlier 14-17% due to client delays. “The delays do not amount to any cancellations. Clients are just breaking contracts into smaller pieces due to the uncertainty in the environment,” said chief operating officer N.V. Tyagarajan.
At the end of September, Genpact had around 43,300 employees worldwide. Its employee attrition rate for the nine months to September was 28% against 23% a year ago.
Genpact generated $68 million of cash from operations in the Q3, up from $55.7 million a year ago. It added 20 clients during the quarter.
Source:http://www.livemint.com/2010/10/28220140/Genpact-net-rises-214-in-Sep.html?atype=tp
