IGATE Q3 net profit up 17% at USD 37.3 mn

Written by PTI | Bangalore | Updated: Oct 16 2014, 00:21am hrs
US-based outsourcing solutions firm IGATE today reported a 17 per cent growth in net profit at USD 37.3 million for the third quarter ended September 30, 2014, aided by growing traction in segments like financial services, healthcare and industry utility solutions.

The New Jersey-headquartered company had posted a net profit of USD 31.9 million in the year-ago period, it said in a statement.

Revenues rose by 10 per cent to USD 322.8 million in the July-September quarter of 2014 fiscal compared to USD 293.4 million in the same quarter of fiscal 2013, it added.

IGATE had reported a net profit of USD 3.1 million in April-June of 2014, which was after a one-time hit of USD 51.8 million arising from extinguishment of debt.

Revenue increased by 3.5 per cent compared to USD 311.7 million in the April-June quarter of 2014.

Commenting on the performance, IGATE President and CEO Ashok Vemuri said: "Our industry utility solutions, Reference Data Management Solution for the financial sector (IDMS) and our Long Term Care Solution for healthcare sector (IBAS), continue to find significant market traction and drive a differentiated industry value proposition.

Through the IGATE Corporate University, the firm is also building market-ready talent capital and emerging technology solutions, further strengthening its competitive position, he added.

"We are pleased to be the only IT services company to be listed in Fortune 100 fastest-growing companies in the US, further validating our go-to-market strategy," Vemuri said.

As of September 30, 2014, the firm had 34,455 employees with a net addition of 1,713 during the third quarter.

"Although we experienced some margin headwinds due to the continuing investment we had to make in some of our transformational client engagements, expanded client coverage and hiring for growth, I am happy with the increase in net income, while we continue to maintain healthy earnings growth," IGATE CFO Sujit Sircar said.

The company lowered its debt by another USD 126 million during the quarter, he added.