iGATE net rises 3.6% q-o-q

Written by fe Bureau | Bangalore | Updated: Jan 17 2014, 09:50am hrs
iGATE, the US-headquartered IT services firm with a huge india presence, saw its net profit rise 7.5% to $33.1 million in the fourth quarter of 2013 compared to the $30.8 million recorded in the same period a year ago.

Revenues for the quarter were $299.3 million, recording yearly growth of 10.2% against the $271.6 million in the same period a year ago.

Sequentially, net profit grew 3.6% while revenues increased 2%.

Commenting on the results, iGATE CEO Ashok Vemuri said, We have successfully finished regrouping the organisation into vertical-based business units that bring in more industry knowledge and solutions, move us closer to the customer and increase depth and accountability for the business. I am confident that we are poised for faster pace of growth in 2014.

Adjusted operating profit, or EBITDA, stood at $74.7 million at the end of the quarter compared to $71.2 million in the fourth quarter of 2012.

As of December 31, 2013, iGATE had 29,733 employees, with a net addition of 1,450 during the quarter. The company added nine new customers during the fourth quarter.

For the full year 2013, iGATE reported revenues of $1,150.9 million as against $1,073.9 million in 2012, growth of 7.2%. Net profit during this period rose 35.5% to $129.8 million.

The companys chief financial officer Sujit Sircar said, We entered into a credit agreement during the fourth quarter and expect this to lower our debt servicing costs and, therefore, better our earnings and profitability from 2014.