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Genpact Q3 net profit up 19.7 pc at $48 mn
BPO major Genpact posted a 19.7 per cent jump in net income to $48 million for the quarter ended September 30, 2011. The net income attributable to Genpact shareholders stood at $40.1 million in the third quarter of 2010, Genpact said in a statement.
"Genpact delivered another great quarter in Q3, with strong growth in revenues, adjusted operating income, earnings per share and cash flows. The integration of the Headstrong acquisition is going well and cross-sell continues to gain momentum," Genpact President and CEO N.V. Tyagarajan said.
Revenues were up 33.6 per cent at $429.6 million in Q3, 2011, compared to $321.6 million in the third quarter of 2010. For the year ahead, Tyagarajan remained confident of the company's ability to keep growing despite ongoing concerns about the global economy. "Our pipeline remains strong and stable... However, in an environment where our clients are facing ongoing macro-economic uncertainty and volatility, which may continue into 2012, it is especially important to be adaptable to the changing priorities these factors may pose," Tyagarajan said.
After the acquisition of Headstrong earlier this year, the company has maintained its outlook of 23-25 per cent revenue growth for the full year 2011. Revenues from clients other than GE, which Genpact refers to as 'global clients', grew 53.6 per cent in comparison to the third quarter of 2010.
Business process management revenues from global clients grew by 22.9 per cent vis-a-vis the third quarter of 2010. Revenues from global clients now represent about 71.3 per cent of Genpact's total revenues, with the remaining 28.7 per cent of its revenues coming from GE.
About 74.3 per cent of Genpact's revenues for the quarter came from business process management services, compared to 86.1 per cent for the third quarter of 2010. Revenues from IT services, including IT services revenues attributable to Headstrong, represented about 25.7 per cent of the company's total revenues in the third quarter of 2011, up from 13.9 per cent for the third quarter of 2010.
Genpact held approximately $409.1 million in cash and cash-equivalents as of September 30, 2011. As of September 30, 2011, Genpact had about 53,600 employees worldwide, an increase from approximately 43,300 as of September 30, 2010.
Its employee attrition rate for the nine months ended September 30, 2011 was 30 per cent, measured from day one of employment, compared to 28 per cent in the corresponding period of 2010.
