iGate net dips 9% on higher costs

Written by fe Bureau | Bangalore | Updated: Apr 11 2014, 10:38am hrs
iGate, the US-headquartered IT services company with more than three-fourths of its employees based in India, has reported a 9% decline in net profit for the three month period ended March 31, 2014, largely due to higher costs. It reported a net profit of $31.6 million for the first quarter of 2014 compared with $34.8 million a year ago.

The revenues for Q1FY14 stood at $302.2 million compared with $274.9 million a year ago, an annual growth of 10%.

iGate CEO Ashok Vemuri said, We had an encouraging start to the year with a 10% y-o-y growth in revenues. With our healthy pipeline, along with the timely rollout of investments in people and solutions, we believe we are well positioned for sustainable growth.

On a sequential basis, the net profit declined by 4.6% while revenue grew by just 1%. The gross margin was lower at 37.5% during the Q1 compared with 38.1% a year ago. Nine new clients were added during Q1FY14, taking the total to 295, lower than 312 a year ago. Total headcount stood at 30,835, with a net addition of 1,102 lower than 1,450 at the sequential quarter ended December 2013.