Genpact revenues up 4.8pc
Posted on May 07 2014 | IBNS
New York, May 6 : Genpact Limited (NYSE: G), a global leader in transforming and running business processes and operations, announced financial results for the first quarter ended March 31, 2014.
Key Financial Results - First Quarter 2014
âEuro˘ Revenues were USD 528.2 million, up 4.8pc from USD 503.8 million in the first quarter of 2013. Revenues from Global Clients were up 7.1pc , and business process management revenues from Global Clients were up 6.2pc .
âEuro˘ Income from operations was USD 77.2 million, up 4.5pc from USD 73.9 million in the first quarter of 2013.
âEuro˘ Net income attributable to Genpact Limited shareholders was USD 50.6 million, up 8.3pc from USD 46.7 million in the first quarter of 2013. Net income margin for the first quarter of 2014 was 9.6pc , up from 9.3pc in the first quarter of 2013.
âEuro˘ Diluted earnings per common share were USD 0.21, up from USD 0.20 per share in the first quarter of 2013.
âEuro˘ Adjusted income from operations was USD 86.4 million, up 4.3pc from USD 82.8 million in the first quarter of 2013.
âEuro˘ Adjusted income from operations margin was 16.4pc , unchanged from the first quarter of 2013.
âEuro˘ Adjusted diluted earnings per share were USD 0.24, up from USD 0.23 in the first quarter of 2013.
N.V. 'Tiger' Tyagarajan, Genpact's president and CEO, said, "In the first quarter of 2014, Genpact delivered growth in revenues, adjusted income from operations, net income and earnings per share. The year is off to a good start as we execute on our growth strategy.
"During the quarter, we closed a large, new transformative engagement with an existing client that also adds capabilities in a targeted vertical, consumer packaged goods."
Revenues from Global Clients grew 7.1pc over the first quarter of 2013. Business process management revenues from Global Clients grew by 6.2pc , led by growth in the capital markets, consumer packaged goods, life sciences and healthcare verticals.
Revenues from Global Clients represented approximately 79.1pc of Genpact's total revenues, or USD 418.0 million, with the remaining 20.9pc of revenues, or USD 110.2 million, coming from GE. GE revenues declined 3.1pc from the first quarter of 2013, adjusted for dispositions by GE of businesses that Genpact continues to serve as Global Clients.
In the 12 months ending March 31, 2014, 81 client relationships each contributed more than USD 5 million in annual revenue, up from 75 such relationships as of March 31, 2013.
This includes client relationships with more than USD 15 million in annual revenue increasing from 24 to 26, and client relationships with more than USD 25 million in annual revenue increasing from 12 to 13.
75.3pc of Genpact's revenues for the quarter came from business process management services, compared to 76.2pc in the first quarter of 2013. Revenues from IT services accounted for 24.7pc of total revenues for the quarter, up from 23.8pc in the first quarter of 2013.
Genpact generated approximately USD 14.2 million of cash from operations in the quarter, compared to USD 31.5 million in the first quarter of 2013. Genpact had approximately USD 567.3 million in cash and cash equivalents as of March 31, 2014.
Subsequent to the quarter, on April 8, 2014, we purchased USD 303 million in value of our common shares, or approximately 17.3 million shares, at a price of USD 17.50 per share.
As of March 31, 2014, Genpact had approximately 64,900 employees worldwide, an increase from approximately 60,200 as of March 31, 2013.
Genpact's employee attrition rate for the quarter was approximately 22pc , measured from the first day of employment, down from 24pc for the same period in 2013. Annualized revenue per employee for the quarter was USD 33,800, compared to USD 34,500 for the quarter ended March 31, 2013.
Tyagarajan added, "2014 is a pivotal year for Genpact as we position ourselves for accelerated long-term growth. Our pipeline continues to be healthy, with good inflows of larger, transformative deals, as we continue to invest in client-facing teams and domain experts.
"We continue to expect 2014 revenues of USD 2.22 to USD 2.26 billion and adjusted income from operations margin in a range of 15.0 - 15.5pc . Our guidance excludes our recent agreement to acquire Pharmalink Consulting, which we expect to close by mid-year."