Genpact Q2 net dips 6%

India's leading BPO firm Genpact today reported a decline of 6.2 per cent in net income at USD 27.8 million for the second quarter ended June 30, 2010, as against Q2 of last fiscal.

The company had net income of USD 29.7 million in the April-June quarter of 2009, Genpact said in a statement. Its revenues rose 12.7 per cent to USD 307.6 million, up from USD 272.9 million during Q2 2009.

The company generated USD 30 million cash from operations in the second quarter of 2010, down from USD 49 million in the second quarter of 2009. The decline was primarily due to increased working capital requirements, Genpact President and CEO Pramod Bhasin said in a statement.

"We had strong revenue growth this quarter as momentum continues to build. Business process management work for Global Clients is the primary driver of this growth," Bhasin said.

"Our outlook remains positive. We continue to expect revenue growth in 2010 of 14 per cent to 17 per cent and adjusted income from operations margin of 17 per cent to 18 per cent," he added.

Bhasin said Genpact's revenues from its leading client, US-based conglomerate, GE also increased across all major service. About 86 per cent of Genpact's revenues for the quarter came from BPO services, up from 83.3 per cent for the second quarter of 2009, while revenues from IT services contributed 14 per cent of total revenues for the second quarter of 2010.

Revenues from clients other than GE grew 16.9 per cent in Q2, 2010, over the second quarter of 2009. Income from global clients now represents about 61.7 per cent of the total revenues, while the rest 38.3 per cent is generated from GE.

The company had cash and cash equivalents at USD 30.8 million during the second quarter, up nearly 7 per cent from USD 28.8 million Q2, 2009.

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Free Indian Stock Tips Team