Genpact Posts 6% Decline in Fourth Quarter Profit

New York: US-based BPO major Genpact on Thursday reported a 6 per cent decline in net profit at $45.8 million for its fourth quarter that ended on December 31, 2014. The firm had registered a net profit of $48.8 million for the corresponding period a year ago, it said in a statement. Revenue rose 8 per cent to $601.5 million in the quarter ended December 2014 as against $558.5 million in the year-ago period. Genpact follows January-December cycle as financial year. On 2015 fiscal revenues, Genpact said it expects revenues to be in the range of $2.46-2.50 billion. "We delivered on our stated financial expectations and made significant progress executing on our growth strategy including completing all of our planned investments for the year," Genpact president and CEO N V Tyagarajan said. For the entire year 2014, net profit declined 16 per cent to $192 million from $227.9 million in 2013. Revenues rose 7 per cent to $2.28 billion from $2.13 billion. Genpact generated $271.8 million cash from operations in 2014 and $93 million in the fourth quarter. It had about $462 million in cash and cash equivalents as of December 31, 2014. At the end of the fourth quarter, Genpact had around 67,900 employees worldwide, up from about 63,600 as of December 31, 2013. Its employee attrition rate for 2014 was 25 per cent. Revenues from Global Clients represented about 79.6 per cent of Genpact's total revenues ($1.81 billion) in 2014 with the remaining 20.4 ($466.1 million) coming from GE. GE revenues dropped by 2.4 per cent compared to 2013, while revenues from Global Clients grew 9.6 per cent for the full year 2014. BPO services accounted for 76.2 per cent of the revenues for 2014 and 77.7 per cent for the fourth quarter from 75.4 per cent for 2013 and 75.3 per cent for the fourth quarter of 2013. Revenues from IT services were 23.8 per cent of total revenues for 2014 and 22.3 per cent for the fourth quarter, compared to 24.6 per cent for 2013 and 24.7 per cent for the fourth quarter of 2013. On revenue outlook, Mr Tyagarajan said, "We expect revenues for 2015 to be in the range of $2.46-2.50 billion. We expect 2015 adjusted operating income margins to be approximately 15 per cent." The disruptive trend sweeping across industries requires firms to integrate new technology and new find ways to use data and insights as a competitive advantage, he said. "Our strategy is focused on building domain-led solutions that are responsive to this trend. We believe we are on right path to further differentiate Genpact and increase our competitiveness and are excited by the momentum in our business as we begin 2015."

Genpact Posts 6% Decline in Fourth Quarter Profit

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