US-based IT services firm iGate reavelaed its quarterly result today and said its net profit increased by 44 per cent to USD 34.8 million for the January-March 2013 quarter on steady growth across verticals. "We saw steady growth across verticals this quarter be it BFSI,healthcare or manufacturing. New customer additions are also across sectors. We have made significant investments in sales,marketing and branding in our markets,which we expect will give us results ahead," iGate Chief Executive Officer Phaneesh Murthy told reporters in a conference call. iGate's net profit stood at USD 24.1 million in the first quarter of 2012. Revenues for the first quarter of 2013 increased four per cent to USD 274.9 million from USD 263.3 million in the first quarter of 2012. The company's gross margin stood at 38.1 per cent for the reported quarter compared to 40.2 per cent in the same period last year. "Our margins were a bit lower as a result of the visa related costs that we partially absorbed in the quarter," iGate CFO Sujit Sircar said. Murthy added that about two-thirds of the visa costs,which are generally accounted for in the second quarter,were absorbed in the first quarter this year. "The remaining will be accounted for in the next quarter," he said. iGate added 10 new customers during the quarter,of which six were Fortune 1000 companies. It added 650 people this quarter,taking its headcount to 28,204. "This quarter,650 people were hired,probably the highest in the last 4-5 quarters in anticipation of the projects coming ahead," Sircar said. Murthy said he expects to see back-loaded growth as clients spend close to their budgets. "One of our large deals,in hundred million range,a 10-year deal,has got delayed. It was expected to begin in Q2 but now will be late by a quarter or maximum 2-3 quarters," Murthy said. iGate,which acquired Indian IT firm Patni Computer in 2011,has a debt of USD 1.1 billion and cash of USD 600 million on its balance sheet.
