New Delhi: The country's top Business Processing Outsourcing firm Genpact on Thursday reported a 1.7 percent dip in its net profit for the third quarter ended September 2009, but upheld its full-year revenue guidance on the back of positive global cues.
"We are confirming our guidance of 6-9 percent revenue
growth over 2008 and raising our adjusted operating margin
guidance to 17.5-18 percent (from 17 percent). We see
encouraging signs in the market. Client demand is coming back,
decision-making is improving and our pipeline is strong,"
Genpact president and CEO Pramod Bhasin said.
Shares of Genpact closed at USD 13, up 7 percent on the
New York Stock Exchange on Wednesday.
Genpact posted a net income of USD 33.1 million, down 1.7
percent from USD 33.6 million in the third quarter of 2008.
The company has reported a revenue of USD 284.4 million
during the quarter under review, up 5.0 percent from USD
270.8 million in same period in 2008.
"Our results for the third quarter of 2009 were solid and
our outlook is positive. We grew revenue, gross profit and
adjusted income from operations margin, both year-over-year
and sequentially," he added.
Genpact, formerly a unit of General Electric, said its
revenue from clients other than GE, grew 17.4 percent over
the third quarter of 2008.
Revenues from non-GE clients now represent 60.8 percent
of Genpact’s total revenues, with the remaining 39.2 percent
of revenues coming from GE.
About 84.9 percent of Genpact’s revenues for the quarter
came from business process services, up from 80.9 percent for
the third quarter of 2008.
However, revenues from IT services came down to 15.1 percent of total revenues for the third quarter of 2009, as
compared to 19.1 percent in 2008.
As of September 30, 2009, Genpact had about 37,700
employees worldwide, an increase from 36,400 as of September
30, 2008.
Genpact’s employee attrition rate for the nine months
ended September 30, 2009, measured from day one of employment,
was 23 percent, down from 26 percent for the same period in
2008.
Bureau Report