iGate Q4 net surges 111% at Rs 4.7 cr

CORPORATE SCORECARD

iGate Global Solutions has reported a 111.2 per cent increase in net profit for the fourth quarter ended March 31, 2006 to Rs 4.7 crore as against Rs 2.2 crore for the corresponding quarter of previous fiscal.

Operating revenues were up 15 per cent to Rs 167.4 crore, while operating profits saw 42.7 per cent growth to Rs 16.1 crore.

On a sequential quarter-on-quarter basis, the company has reported 262.3 per cent hike in net profit, a 1.4 per cent rise in operating revenues and a 18.2 per cent decline in operating profits.

The company attributed this decline to selective salary corrections and also to the fact that utilisations in March was low as some of the projects got completed during March, thus increasing the bench strength.

The dependence on GE as a customer for iGate has come down to 36 per cent for FY06 as against 40 per cent during FY05 and is expected to come down further to 31 per cent during FY07.

For the entire fiscal FY06, the company has reported a 74 per cent dip in net profit to Rs 5.5 crore as against Rs 21.2 crore during FY05.

The net profit after tax for FY06 has actually increased compared with previous year if they were to exclude the one time provision for dimunition in long term investment of Rs 11.1 crore in FY06 and the Rs 15.64 crore extraordinary gains from the sale of surplus assets earned in FY05.

The company for the year has reported operating revenues of Rs 635.8 crore, an increase of 9.6 per cent over Rs 580 crore posted during FY05.

Said Phaneesh Murthy, CEO, iGate: "The past year saw us acquiring a promising list of Fortune 1000 clients, who will drive our revenues. There is a growing optimism about the order pipeline and we are on the path of growth and predictability of revenues."