iGate Q4 net profit jumps 110% to USD 32.2 mn, rev growth marginal

NASDAQ

NASDAQ-listed iGate today said its net income more than doubled to USD 32.2 million in the October-December quarter of 2012 on the back of corporate restructuring and strong customer additions.

This is against net income of USD 15.3 million in the year-ago period.

"It is not a great quarter from revenue perspective but a stellar one from net income perspective. Our corporate restructuring programme has helped us immensely in increasing our net income," iGate CEO Phaneesh Murthy told reporters on a conference call.

The company's revenues were impacted by the investments it made in "re-orientation" of its sales force, coupled with reduced client spending.

"In the event of integration and consolidation, we have had to do quite a bit of unlearning and re-orientation to our sales force to be able to sell on an outcomes based proposition. Our investments in sales and marketing engines during the last two quarters should yield us results in 2013," he added.

The company's revenues for the reported period stood at USD 271.6 million, up marginally from USD 267.7 million in the fourth quarter of 2011.

The company follows January-December fiscal year.

In 2011, iGate bought about 63 per cent stake in Patni Computer, India's sixth largest information technology firm, for about USD 921 million (Rs 4,188 crore).

iGate Chief Financial Officer Sujit Sircar said: "We successfully carried out the delisting process in India in 2012 and further completed the consolidations of our US subsidiaries."

For the fiscal 2012, net income of the software services firm stood USD 97.2 million, up 89 per cent from USD 51.5 million in 2011.

Its revenues for the full year rose 38 per cent to USD 1.07 billion from USD 779.6 million in previous fiscal.

"The company added 14 new customers during the fourth quarter, including seven Fortune 1,000 companies," Murthy added, adding that the order pipeline is looking strong.

... contd.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.