Global revenues push Genpact net up by 27%
GENPACT, the country’s largest BPO, reported a 27% growth in net profit for the quarter ended September 30, driven largely by rise in global client revenue. The company’s net profit for the quarter grew to $16.3 million (Rs 64.26 crore) and revenues rose 32% to $214.6 million (Rs 846 crore). The company also raised its full-year revenue outlook on strong client demand. It said it anticipates revenue growth between 30% and 32%, up from its prior forecast for growth between 28-30%. Net profit margin for the third quarter decreased slightly to 7.6% from 7.9% in the third quarter of 2006, primarily due to certain tax charges, Genpact said in a statement. Global client revenues grew 78.6% in the quarter compared to the third quarter of 2006. Revenue from GE increased 10.6% in the quarter. Global clients represented 43% of total revenues for the quarter. “Our results reflect the strength of client demand, especially from global clients, driving our delivery centre growth in India where we continue to expand in both tier-I and tier-II cities, and growth in Europe and Asia-Pacific where multi-national clients require support in multiple locations and many languages. Approximately 75% of our revenues for the yearto-date are coming from our India operations,” said Genpact president and CEO Pramod Bhasin. Genpact had 31,700 employees worldwide as of September 30, an 8% increase from the second quarter of 2007. Year-to-date global attrition has been reduced to 29% from 32% in 2006. Despite the mortgage and credit market turmoil in the United States, there has been no significant adverse impact on Genpact’s overall results. “Genpact’s mortgage services business has seen a small revenue decline as processing volume has diminished from clients but revenues from its mortgage services business do not impact Genpact’s overall performance and has been more than offset by growth in other areas,” the BPO firm said in its statement.