On the back of increased business from its global clients abroad, Genpact, the country's largest business process outsourcing (BPO), on Thursday reported a better-than-expected first quarter numbers. It posted a 28.2 per cent increase in net income to $36.1 million for the first quarter ending March compared to $28.2 million in the same period last year.
The company reported a 14.7 per cent growth in revenues at $330.6 million for the first quarter ended March, compared to $288.2 million in the first quarter of 2010. "Genpact delivered a very good quarter, with strong growth in revenues, income, earnings per share and cash flows. Revenues from business process management services for global clients continued to be our growth engine,” said President and CEO Pramod Bhasin.
It also raised its annual revenue growth outlook to 23-25 per cent besides taking into account its acquisition of information technology firm Headstrong last month. Headstrong was acquired for $550 million (Rs 2,475 crore) on April 6. Excluding revenue from Headstrong, the BPO had given a full-year outlook of 10-13 per cent revenue growth.
“With the acquisition of Headstrong, we now expect full year revenue growth of 23–25 per cent. This reflects Genpact’s full year revenue growth of 10 –13 per cent plus eight months of revenues from Headstrong,” Bhasin said. He expects Headstrong, that generated revenue of $217 million in 2010, to grow by 20 per cent in the medium to long term.
The company's revenues from global clients, excluding GE, grew 23.6 per cent over the first quarter of 2010. Genpact also saw healthy demand for core offerings in finance and accounting in key growth verticals, such as consumer packaged goods, retail and pharmaceuticals.
Revenues from global clients now represent 65.9 per cent of the company's total revenues, with the remaining 34.1 per cent of revenues coming from GE.
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GE revenues increased marginally by 0.7 per cent, from the first quarter of 2010.About 87.2 per cent of Genpact's revenues for the quarter came from business process management services, up from 85.2 per cent for the first quarter of 2010.
The headcount at the end of the January-March quarter was 45,500 employees. It is a marginal increase from 41,300 as on March 31, 2010. Attrition, however, continues to plague the BPO giant. Genpact's employee attrition rate for the quarter was 29 per cent, an increase from 23 per cent for the same period in 2010.