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Genpact net profit up by 14 percent in Q2
By siliconindia
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Wednesday, 05 August 2009, 14:57 IST |
2 Comments
New Delhi: Genpact (NYSE: G), the outsourcing services provider reported a 13.8 percent increase in its net profit at $31.81 million for the second quarter ending June 2009 against the same period last year. However, the net profit of the company was marginally down compared to $31.87 million reported during the first quarter of current fiscal.
During the quarter, Genpact's revenues stood at $272.9 million, up eight percent compared to the same period last year and 2.7 percent sequentially. The company has also revised its guidance downward in the range of 6-9 percent growth in revenues for 2009 against 2008 from 10-15 percent which was earlier projected. Pramod Bhasin, President and CEO, Genpact said, "In light of the environment of continuing delays and uncertainty, and based on the trends in the second quarter that we believe are likely to continue, we feel it is appropriate at this time to revise our annual guidance for 2009".
However, the company has increased its adjusted operating margin guidance to a range of 17-17.5 percent from 16-17 percent as it tries to manage its costs better. "Our global client growth engine is healthy and robust, our relationship with GE is strong and deep and our profitability is expanding, even in a tough economy," said Bhasin.
The net income margin of the company for this quarter was at 10.9 percent, up from 9.8 percent in the same period last year but down from 11.3 percent in the first quarter ending March 2009. Revenues from GE, which contributes 40 percent of Genpact's total turnover, declined by seven percent while revenues from clients other than GE, which Genpact refers to as global client revenues, grew 27 percent.
During the quarter, Genpact has acquired South Africa-based shared services center of South African Breweries (SAB) in Johannesburg. The partnership will include the transition of all employees of the center to Genpact, which sees SA as a strategic location considering its favorable economic environment.
