iGate Revenue Crosses $1 Billion in Fiscal 2012

Bangalore: Leading integrated technology and operations firm iGate Corporation reported $1.1 billion revenue for fiscal 2012, crossing the billon-dollar mark and posting 38 percent year-on-year (YoY) growth over 2011 from $780 million.

In a regulatory filing, the US-based firm said net income rose a whopping 87 percent YoY to $97 million from $52 million for fiscal 2012 (the company follows the calendar year) under review, with gross margin at 40 percent as against 38 percent in previous fiscal.

Similarly, Ebitda (earnings before interest, tax, depreciation and amortisation) shot up 56 percent YoY to $272 million from $174 million in 2011.

For the fourth quarter (October-December), net income zoomed 110 percent YoY to $32 million from $15 million in same quarter of 2011 and 14 percent sequentially from $28 million in third quarter (July-September) of 2012.

Revenue, however, grew marginally (1.5 percent) to $272 million from $268 million in 2011 and sequentially flat from third quarter (July-September) of 2012.

"We achieved high earnings growth in 2012 due to the increased acceptance of our business model by customers. I believe the recently launched brand campaign will continue to improve our customer pipeline in this area," iGate chief executive Phaneesh Murthy said in a statement later from the company's headquarters at Fremont in California.

Gross margin for quarter under review (Q4) also remained flat YoY and sequentially at 41 percent as against 40 percent in same quarter of 2011 and sequentially from third quarter of 2012.

Similarly, Ebitda was at $72 million in Q4 as against $68 million in same quarter of 2011 and $69 million in third quarter of 2012.

Operating margin shot up 95 percent YoY to $207 million from $106 million in 2011 and 11 percent sequentially to $57 million from $52 million.

"We carried out the delisting process in India and completed the consolidations of our US subsidiaries. Our operating cash flow was over $100 million and investment exceeded $600 million during the year," said CFO Sujit Sircar said.

The company was also ranked the 'Best IT Employer' in a survey conducted by a leading trade magazine (Dataquest) with CMR.

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