Genpact posts net income of $25 million
SOURCE: EconomicTimes
DATE: August 6th, 2008
ARTICLE
Result Highlights:
- Revenues were $253.6 million, up 26% from the second quarter of 2007.
- Net income was $24.8 million, up 250% from $7.1 million in the second quarter of 2007; net income margin for the second quarter of 2008 was 9.8%, up from 3.5% in the second quarter of 2007.
- Earnings per common share were $0.11, up from a loss of $0.17 per share in the second quarter of 2007.
- Adjusted income from operations increased 40% to $41.8 million compared to the second quarter of 2007.
- Adjusted income from operations margin was 16.5%, up from 14.9% in the second quarter of 2007.
- Adjusted diluted earnings per share were $0.18, up from $0.10 in the second quarter of 2007.
- 25 clients accounting for $ 5 million of revenue
- 4 clients accounting for $ 25 million of revenue
- Attrition rate annualized : 25% for first half of 2008
- # of employees 35,500 end of second quarter - net addition of close to 1000 employees over last quarter
Genpact seems to see pricing tick upwards and better than their 1st quarter forecast. This seems different from the pricing stability reported by Wipro, Infosys etc.. which seem to see a stable or downward pricing trend
Genpact, India’s largest BPO firm, on Wednesday reported a net income of $24.8 million for the quarter ended June 2008, against $7.1 million in the same quarter last year.Revenues increased 26% to $253.6 million during the quarter. The BPO firm said it expects revenue in 2008 to grow 26-28% from 2007’s revenue of $823 million.
Genpact has re-classified its forex gains/losses from a separate line item forming part of income from operations to SG&A expenses, cost of revenue or net revenues, as applicable. “Following the re-classification, it’s our adjusted operating income which is a true measure of our operating health,” said Genpact president & CEO Pramod Bhasin
Adjusted income from operations increased 40% yoy to $41.8 million. The company expects adjusted income from operations margin to improve 80-100 basis points to 17.1-17.3% in 2008 from 16.3% in 2007. “We saw improved pricing, greater contribution from high-value re-engineering work and better utilisation during the quarter,” said Mr Bhasin.
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