iGate Q2 profits up, weak Q3 likely

By agencies   |   Tuesday, 11 October 2005, 19:30 IST
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NEW DELHI: iGate Global Solutions increased its second quarter profits by 84.9 percent to $1.27 million backed by increasing sales. The second quarter growth surpassed the first quarter growth as the net profit was 296 percent. "Quarter-on-quarter growth model has started showing results and margins have started expanding. The gross operating margins have gone up to 32 percent from 20 percent," iGate Chief Executive Officer Phaneesh Murthy said. The EBITA has also grown to 10 percent from 4.0 percent. "We are happy to reach quarter-on-quarter growth. We want to take the quarter-on-quarter growth to a new level. The company will take some time to reach double digit growth in revenues," Murthy said. He said the company's integrated technology and operations model has got a positive response from customers. "iTOPS model has helped us acquire number of customers," Murthy added. The company is, however, expecting a weak third quarter which Murthy attributed to many festivals and holidays. The company added 73 people during the second quarter to take the total to 4,356. Offshore leverage of the company has gone up by one percent. Now 68 percent of the company's employees are at offshore locations and 32 are close to the client locations. "We have reached a ratio of offshore and onshore that we are comfortable with," Murthy said.