IGATE net profit up 20%

Company says currency volatility continues as a concern

Information technology services company IGATE on Tuesday posted a 20 per cent growth in its net profit for the quarter ended March 31, 2015, to $38 million, compared with the year-ago quarter. The revenues at $332 million went up 6.6 per cent compared with the corresponding period a year ago.

Quarter-on-quarter, the net profit growth was flat and the revenues declined three per cent, which the company attributed to the foreign exchange market and a one-time revenue in the previous quarter. The Nasdaq-listed company improved its gross margin over the previous quarter by 30 basis points to 35.1 per cent in the March quarter.

“We increased revenues, delivered margin improvement, and added a good number of clients. We have made significant investments in tools, methodology, automation, and program management, which will take us to the next level,” Ashok Vemuri, president and chief executive, said.

The company added 15 clients during the quarter. The company said currency fluctuation remains a key concern.

“Volatility in the foreign exchange market remains a cause of concern, particularly the appreciation of the dollar against other currencies, which is affecting our top line,” said Sujit Sircar, chief financial officer.

Last month, French IT services and consulting company Capgemini had agreed to acquire Igate for an all cash consideration of around $4 billion. The transaction is expected to close in the second half of 2015.