Ranked among the Fortune 100 fastest growing companies in the US this year, the US-based firm in the last one year has rejigged organisational structure to strengthen capabilities, increase focus on large deals and building a team of strong professionals through on-the-job training.
“The Fortune ranking is a revalidation of what we have done in the last one year. IGATE is the only IT services firm in the list and that makes it even more special,” IGATE President & CEO Ashok Vemuri told PTI.
Vemuri, who also completes a year at IGATE, added the firm’s focus on monetising and amplifying its strengths by adding new solutions and services and increased focus on large deals have helped it achieve the milestone.
“We are better than before with a clean balance sheet, reduced debt, strong organisation structure, right leadership and niche service offerings. This will further IGATE’s reputation as a complete solutions and software services provider,” the former Infosys Head of Americas said.
For the loan of $770 million (at an interest rate of 9%), IGATE was paying $23-25 million per quarter in interest costs. Now, the firm has refinanced it and taken a loan of $685 million at an interest of 4% and will be paying $7-8 million per quarter in interest costs, which will reduce over $50 million in interest costs annually.
Its net debt stood at $475 million at the end of the second quarter.
But the one-time charge of $51.8 million on debt settlement hit its net profit for the April-June quarter, which fell by 89.6% to $3.1 million. The company had posted a net profit of $30 million in the second quarter of 2013. It follows January-December as fiscal year.
When asked about plans of the company to maintain this growth momentum, Vemuri said the deal pipeline is good and the firm is focusing on building new technologies and train its manpower on those lines.
“We have great business opportunities developing, which can be seen with our expansion plans for our delivery centres across the US, Canada, Europe and India. Besides, we have been building on new technologies and investing on training our employees so that we go ahead prepared,” he added.