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Genpact quarterly net income up 4.5 pct,keeps 2013 revenue guidance unchanged

Genpact delivered strong growth in revenues and adjusted operating income: NV Tyagarajan

Written by Press Trust Of India | New Delhi | Published: August 7, 2013 2:22:06 pm

BPO major Genpact has reported a 4.5 per cent rise in its net income at USD 63.9 million for the second quarter ended June 30,2013,helped by growth in capital markets,CPG,life sciences and business and financial services.

The US-based firm had posted a net income of USD 61.1 million in the same period last year,it said in a release. The company,which announced its Q2 results yesterday,follows January-December fiscal year.

Also read: Genpact buys Jawood,including Felix Software strengthens healthcare business

Genpact has kept its revenue guidance for the current fiscal unchanged in the range of USD 2.15-2.20 billion,citing a mixed macro-environment.

Its revenues rose by 14.4 per cent to USD 534.8 million in April-June quarter of 2013 from USD 467.6 million in the year-ago period.

Commenting on the performance,Genpact President and CEO NV Tyagarajan said: “Continuing the momentum in 2013,Genpact delivered strong growth in revenues and adjusted operating income as well as recorded solid cash flows from operations in the second quarter.”

Also read: Bain Capital gets CCI nod for stake buy in Genpact

Revenues from global clients grew 19.8 per cent over the second quarter of 2012. Business process management revenues from global clients grew by 18.1 per cent,Genpact said.

This was led by growth in Banking and Financial Services,Consumer Packaged Goods,Life Sciences and Healthcare and Business Services,it added.

On outlook,Tyagarajan said: “The macro-environment continues to be mixed — challenging for some industries and geographies and improving in others. Our pipeline is healthy and stable with a significant uptick in larger transformative deals. Large transformational engagements are where we want to be,but they are complex and do have a longer decision cycle time.”

As a result of these longer cycle period,together with more subdued GE revenues,Genpact now expects revenues for the full year 2013 to be in the lower half of its range of USD 2.15-2.20 billion,he added.

“We continue to expect adjusted operating income margin in a range of 15.8-16.3 per cent,” he said.

Revenues from global clients represented approximately 77.3 per cent of Genpact’s total revenues (USD 413.2 million) with the remaining 22.7 per cent of revenues (USD 121.6 million) coming from GE.

Genpact generated USD 76.1 million of cash from operations in the second quarter of 2013,compared to USD 127.2 million in the same quarter a year ago.

As of June 30,2013,the company’s total headcount stood at about 60,200 employees globally,up from around 58,600 in the year ago period.

The company delivers services to more than 700 clients from a network of 68 delivery centers across 18 countries.

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