Home >companies >Genpact Q3 net profit declines 33.5% to $46.7 million

New York: Business process outsourcing (BPO) major Genpact Ltd has reported 33.5% decline in its net profit at $46.7 million for the third quarter ended 30 September.

The US-based firm, which follows January-December fiscal, had posted a net profit of $70.3 million in the same period last year, it said in a statement.

However, its revenues rose by 9.9% to $588.1 million in July-September of 2014 from $534.9 million in the year-ago period.

“We had a strong third quarter, with global client revenues resuming double-digit growth. We continued the disciplined execution of our strategy by focusing our resources and investments in our chosen verticals, geographies and service lines," Genpact president and chief executive officer (CEO) N.V. Tyagarajan said.

He added that the firm is ahead of its planned investments in client-facing teams and domain-led capability builds.

“We have also improved productivity in our client-facing teams, which is reflected in bookings momentum and improved win rates," he said.

The company maintained its earlier revenue guidance of $2.24-2.28 billion for the current fiscal.

“Our growth strategy is beginning to generate results and we now expect 2014 revenues to be at the high-end of the previously announced range of $2.24 to $2.28 billion," Tyagarajan said.

Revenues from global clients grew 12.9% over the third quarter of 2013, representing about 80% of Genpact’s total revenues in the quarter. The remaining portion ($117.3 million) came from General Electric (GE).

“Revenues from global clients grew 12.9%, led by growth in the life sciences, consumer product goods, insurance and infrastructure, manufacturing and services verticals. BPO revenues from global clients grew by 15.8%," it said.

GE revenues decreased 0.4% from the third quarter of 2013, adjusted for dispositions by GE of businesses that Genpact continues to serve as global clients, Genpact added.

In the 12 months ending 30 June, 2014, Genpact grew client relationships with revenues over $5 million to 88 from 77 as of 30 September, 2013.

Genpact said 76% of its revenues for the quarter came from BPO services, up from 75.1% in the third quarter of 2013. Revenues from IT services were 24% of total revenues for the quarter.

The NYSE-listed firm generated $85.7 million of cash from operations in the quarter. It had about $424.2 million in cash and cash equivalents as of 30 September, 2014.

Genpact had about 67,500 employees worldwide, up from 62,200 as of same period last year. Its attrition rate for the quarter stood at 27%. PTI

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