New Delhi: Genpact reported a 56.6 percent rise in net profit at $61.1 million for the second quarter ended June 30, primarily driven by growth in revenues from global clients.
The BPO major had posted a net profit of $39 million in the April-June quarter of 2011. The company follows January-December as its financial year.
Revenues in the reported quarter stood at $467.6 million, up 17.6 percent from $397.6 million in the second quarter of 2011. Business process management and technology services revenues from Global Clients were up 19.8 percent and 38.4 percent, respectively.
The company said it expects to pay a special cash dividend to all shareholders of $2.24 per common share, or about $500 million in total. “Genpact had another great quarter with strong growth in revenues. Revenue growth was broad based across all our geographies, including Europe, and all major service lines, including finance and accounting,” Genpact President and CEO N V Tyagarajan said.
On the revenue outlook, Tyagarajan said, “We have delivered a terrific first half of the year, despite some softness around discretionary spending. In an uncertain macro-environment, we continue to expect full-year revenues to be in a range of $1.86–1.90 billion.”
The company established 35 new client relationships this quarter as against 26 in the second quarter of 2011. Revenues from Global Clients, which represents about 73 percent of Genpact’s total revenues, grew 24 percent over the second quarter of 2011.
The remaining 27 percent or $126.2 million came from GE. GE revenues increased 3.2 percent from the second quarter of 2011, adjusted for dispositions by GE. Revenues from IT services comprised 24.0 percent of total revenues for the second quarter of 2012, up from 21.9 percent for the second quarter of 2011.
Genpact had about $441.6 million in cash and cash equivalents and short-term deposits as of June 30, 2012. Genpact’s employee attrition rate for the six months ended June 30, 2012 was 24 percent, measured from day one of employment, down from 29 percent for the same period in 2011.