Genpact, India’s largest business process outsourcing (BPO) company, today posted a 26 per cent fall in net income for the quarter ended December 31, 2009.
This was due, it said, to higher tax rates because of its units coming out of the Software Technology Parks of India bracket and a one-time investment of $13 million (Rs 60 crore).
Net income was $34.6 million (Rs 160 crore), compared with $47 million (Rs 216 crore) in the corresponding quarter a year earlier. Net revenues for the quarter, at $296.9 million (Rs 1,365 crore), were up 5.3 per cent from $281.8 million (Rs 1,290 crore) a year earlier.
The company gave an expectation (‘guidance’) of revenue growth in 2010 of 14-17 per cent, based on its recent acquisition of Symphony Market Solutions. It expects this to add two per cent to growth for next year.
Revenues from clients other than GE grew 16 per cent over 2008, while revenue from GE increased to $117.4 million (Rs 540 crore) in the fourth quarter. The company added 52 clients during the year.
Sequentially (compared to the trailing quarter), net income rose 4.8 per cent from $33 million (Rs 152 crore) in the trailing quarter, while net revenues increased 4.4 per cent from $284.4 million (Rs 1,308 crore) in the previous quarter.
With an annual attrition rate of 23 per cent, Genpact had more than 38,600 employees worldwide, an increase from 36,200 at the end of 2008.