New Delhi: Business process outsourcing (BPO) firm Genpact Ltd has reported a more than twofold rise in net profit at $70.26 million for the third quarter (Q3) ended September, led by growth in banking and financial services, re-engineering and accounting.
The NYSE-listed firm had posted net profit of $25.18 million in the July-September quarter in 2012.
Revenues, which were below company’s expectations, were up 9% at $534.89 million from $491.16 billion during the quarter under review, Genpact said.
The US-based firm, however, lowered its full 2013 fiscal revenue guidance to $2.12-$2.13 billion from the earlier $2.15-$2.20 billion on account of lower than expected revenues.
Genpact raised its adjusted operating income margin to the range of 16.5-16.8% from the earlier 15.8-16.3% for 2013 helped by slower ramps in front-end and domain expert hiring and delays in large deals that typically require upfront spend.
Genpact president and chief executive officer (CEO) N.V. Tyagarajan said: “Revenue growth was below expectations.”
Tyagarajan attributed lower-than-expected revenues to the foreign exchange headwinds affecting the firm’s non-US dollar revenues more than anticipated, continued reduction in its mortgage originations business related to softness in refinancing volumes in the US and an increase in the value and proportion of large deals in the pipeline.
He said: “Although conversion to revenue in large, transformative deals takes significantly longer, these engagements are where we want to be and where the depth of our operational capabilities and benchmarks add the most value to our clients.”
Revenues from global clients grew 12.7% over the third quarter of 2012, he said.
Business process management (BPM) revenues from global clients grew by 10.4%, led by growth in the insurance, hi-tech, consumer packaged goods, retail and life sciences verticals, Tyagarajan added.
Revenues from global clients represented about 77.9% of Genpact’s total revenues, $416.9 million, with the remaining 22.1% or $118 million, coming from GE.
Revenues from GE decreased 2.7% from the third quarter of 2012, Tyagarajan said.
On outlook, he said: “In order to capture a larger share of this market, we are targeting specific industry verticals, service lines and geographies where our offerings are truly differentiated and our ability to generate business impact is the greatest.”
Clients in the $5-15 million annual revenue category rose to 52 from 42 in the prior year third quarter, $15-25 million category clients increased to 13 from 11 and clients in the over $25 million category in yearly revenue rose to 12 from 11, he added.
Genpact had around $499 million in cash and cash equivalents and short term deposits as of 30 September.
As of 30 September, it had about 62,200 employees globally up from about 60,800 in the year-ago period.