Genpact Q3 net up 2-fold; lowers 2013 guidance

NEW DELHI: BPO major Genpact has reported over twofold rise in net income at $70.26 million for the third quarter ended September, led by growth in banking and financial services, re-engineering and accounting.
The NYSE-listed firm had posted net income of $25.18 million is the July-September quarter in 2012.

Revenues, which were below company's expectations, were up 9% at $534.89 million from $491.16 billion during the quarter under review, Genpact said in a statement.

The US-based firm, however, lowered its full 2013 fiscal revenue guidance to $2.12-2.13 billion from the earlier $2.15-2.20 billion on account of lower than expected revenues.

Genpact raised its adjusted operating income margin to the range of 16.5-16.8% from the earlier 15.8-16.3% for 2013 helped by slower ramps in front-end and domain expert hiring and delays in large deals that typically require upfront spend. Genpact president and CEO N V Tyagarajan said: "Revenue growth was below expectations."

Tyagarajan attributed lower-than-expected revenues to the foreign exchange headwinds impacting the firm's non-US dollar revenues more than anticipated, continued reduction in its mortgage originations business related to softness in refinancing volumes in the US and an increase in the value and proportion of large deals in the pipeline. Revenues from global clients grew 12.7% over the third quarter of 2012, he said.