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iGATE Global posts Q3 profit, other income helps
By siliconindia staff writer
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Friday, 14 January 2005, 20:30 IST
BANGALORE: Mid-sized software services firm iGATE Global Solutions Ltd. reported a third-quarter net profit on Thursday, helped by one-time other income, compared with a loss in the year-earlier quarter.
The Bangalore-based firm said it made a net profit of 158.4 million rupees for the October-December quarter, compared with a net loss of 26.5 million rupees reported a year ago.
Other income rose to 143.4 million rupees, from 25.2 million a year earlier, and comprised largely profit from sale of some land.
Revenue, at 1.43 billion rupees, was up a mere 0.4 percent on year, and down 4 percent from the preceding quarter, partly hurt by the weak dollar.
Phaneesh Murthy, chief executive officer of iGate, told Reuters the company signed two "multi-million, multi-year" contracts during the quarter.
He did not indicate the revenue potential from the deals, but said income will start flowing in from the April-June quarter.
It will handle mortgages for a financial services firm in one deal, while in the other it will manage accounts for a contract manufacturing company.
"We are a little bullish at the fact that we can win these kind of deals in the face of competition," he said.
iGate's shares were up nearly 8 percent in morning trade, at 273 rupees, while the benchmark Bombay Stock Exchange index rose 1.41 percent.
In the past quarter, business volumes grew one percent from the preceding quarter, while average pricing rose three percent.
The company, a unit of Nasdaq-listed iGATE Corp., had 3,710 employees at the end of December with net additions of 159 staffers during the third quarter.
It added 15 new clients during the quarter.