New Delhi: Business process outsourcing firm Genpact Ltd. on Thursday posted a 6% decline in net income to $28.2 million (Rs125.8 crore) for the quarter ended March because of higher taxes and higher spending on sales and marketing.
The company had earned net income of $30 million in the same period last year.
“The tax holiday on the Hyderabad unit came to an end, which resulted in higher taxes. This, coupled with investments made in business development, sales and marketing, led to the decline in net income,” Genpact chief operating officer N.V. Tyagarajan told reporters. Genpact expects revenue growth of 14-17% in 2010.
Revenue increased 8.4% to $288.2 million in the first quarter of 2010 from $265.8 million in the corresponding period of 2009.
“Our results for the first quarter of 2010 were solid and a good start to the year. Our deal pipeline has grown 20% (in value terms) over the previous quarter,” Tyagarajan added.
Around 85.2% of Genpact’s revenues for the quarter came from business process services.
Information technology services revenue for the New York-listed firm made up 14.8% of the total revenue in the March quarter against 16.9% in the year-ago period.