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The country's largest business process outsourcing (BPO) firm, Genpact Ltd, reported a 11.6 per cent drop in net profit at $44.7 million during the first quarter of calendar year 2015 against the same period last year. This came on the back of revenues of $587 million, up 11.2 per cent from $528 million in the first quarter of 2014.
N V Tyagarajan, also Tiger, Genpact's president and chief executive, said, "We are pleased with our first-quarter results and excited by the momentum in our business. Our global client growth rate accelerated to over 13 per cent in the quarter. We signed two large transformational engagements in the first quarter and our pipeline continues to be healthy across our target sector verticals, service lines, and geographies."
The company has kept its full-revenue forecast unchanged from what it had set last year for 2015. "We continue to expect revenues for 2015 to be in the range of $2.46 billion to $2.50 billion, including an unchanged outlook on global client and General Electric (GE) revenues, and adjusted operating margin to be approximately 15 per cent as margins improve throughout the year, with continued revenue growth and operating leverage," said Tyagarajan.
Money from global clients (minus GE, the former parent of Genpact) led to 80.7 per cent of Genpact's total revenues, or $473.5 million, with the remaining 19.3 per cent of revenues, or $113.6 million, coming from GE. While revenues from global clients grew 13.3 per cent over the first quarter of 2014, led by a growth in the consumer product goods, insurance, life sciences, high tech, and banking verticals, GE revenues increased three per cent from the first quarter of 2014.
Genpact also grew its share of revenues from BPO to 78.5 per cent from 75.3 per cent in the first quarter of 2014.
The company also said that during the first quarter, it repurchased aound 600,000 of its common shares at a weighted average price of $22.51 for $13.3 million under a share repurchase programme it had announced on February 27. Genpact is authorised to repurchase up to $250 million of its common shares under the programme. The company generated $24.3 million of cash from operations in the quarter, up from $14.2 million in the first quarter of 2014, and had around $434 million in cash and cash equivalents on March 31.
