CIOReview Team | Friday, 06 November 2015, 11:08 IST
Revenues of $617.8 Million, Up 5% (~7% on a constant currency basis)
Global Client BPO Revenues of $396 Million, Up 10% (~14% on a constant currency basis)
Adjusted Income from Operations of $97.1 Million, Up 10%
Adjusted Diluted EPS of $0.35, Up 36%
NEW YORK, November 5, 2015 - Genpact Limited (NYSE: G), the architect of the Lean DigitalSM enterprise, today announced financial results for the third quarter ended September 30, 2015.
Key Financial Results – Third Quarter 2015
• Total revenue was $617.8 million, up 5% year over year (up ~7% on a constant currency basis).
• Income from operations was $87.3 million, up 20% year over year.
• Adjusted income from operations was $97.1 million, up 10% year over year, with a margin of 15.7%.
• Diluted earnings per share were $0.31, up 48% year over year, and adjusted diluted earnings per share were $0.35, up 36% year over year.
• Genpact repurchased approximately 3.5 million of its common shares for a total of $78 million under its $250 million share repurchase program. As of September 30, Genpact has repurchased approximately 7.1 million of its common shares in 2015 for a total of $159 million.
“Genpact delivered another solid quarter, driven by continued strong growth within our core Global Client BPO business,” said N.V. “Tiger” Tyagarajan, Genpact’s president and CEO. “Our investments in client-facing teams and solutions that bring together domain depth with process, technology and analytics are resonating in the marketplace. We signed three new large deals during the quarter, bringing the total for the year to seven. We continue to invest in digital capabilities that together with our heritage in Lean principles and deep process and domain expertise, unleash the full power of digital through the middle and back office.”
Revenue Details – Third Quarter 2015
• Revenue from Global Clients was $503 million, up 7% year over year (up ~10% on a constant currency basis), representing approximately 81% of total revenues.
• Revenue from GE was $115 million, down 2% year over year, representing approximately 19% of total revenues.
• Total BPO revenue was $484 million, up 8% year over year, representing approximately 78% of total revenues.
• Global Client BPO revenue was $396 million, up 10% year over year (up ~14% on a constant currency basis).
• GE BPO revenue was $88 million, unchanged from the third quarter of 2014.
• Total IT revenue was $134 million, down 5% year over year, representing approximately 22% of total revenues.
• Global Client IT revenue was $108 million, down 4% year over year.
• GE IT revenue was $27 million, down 9% year over year.
• Annualized revenue per employee for the quarter was $36,600, up from $36,200 in the third quarter of 2014.
Cash Flow from Operations
• Cash from operations was $139 million in the third quarter of 2015, up 62% from $86 million in the third quarter of 2014.
Client Relationships as of September 30, 2015
• For the 12-month period ended September 30, 2015, the number of client relationships generating annual revenue over $5 million increased to 103 from 88 as of September 30, 2014. This includes client relationships with more than $15 million in annual revenue increasing to 34 from 30, and client relationships with more than $25 million in annual revenue increasing to 16 from 15.
Employee Statistics as of September 30, 2015
• Genpact had approximately 70,800 employees worldwide, up from approximately 67,500 as of September 30, 2014.
• Genpact's employee attrition rate for the quarter was approximately 29%, measured from the first day of employment, compared to 27% for the same period in 2014.
2015 Outlook
Genpact currently expects:
• Total revenues of approximately $2.46 billion (representing year-over-year growth of ~10% on a constant currency basis) compared to the prior range of $2.46 billion to $2.50 billion. The full-year revenue outlook now assumes an additional $16 million of adverse effects from foreign currency (at current exchange rates) compared to the outlook given at the beginning of the year.
• Adjusted income from operations margin to be in the range of 15.1% to 15.3%, compared to the prior range of 15.0% to 15.2%.
