Nasdaq-listed iGATE, which has about 80 per cent of its workforce based out of India, has reported a 44 per cent jump in net profit at $34.8 million for the first quarter ended March 31, 2013.
This is against a net profit of $24.1 million registered in the January-March quarter of 2012. iGATE, which is headquartered in California, follows a January-December fiscal year.
Revenues for the first quarter, however, increased by only four per cent to $274.9 million from $263 million in the first quarter of 2012.
While gross margins were down at 38.1 per cent for the quarter under review, compared to 40.2 per cent in the same period a year ago, the company added ten new customers.
Out of the ten, six are Fortune 1000 companies, according to a company statement.
Our Mumbai correspondent reports:
Addressing a teleconference, iGATE CEO Phaneesh Murthy said the company’s debt stood at $1.1 billion but it had cash of $600 million “and so net debt is $500 million.” “The debt has two components — a bank debt in Asia which we will start repaying this quarter onwards and second, $770 million bonds in U.S. which can be called in May 2014. This will be pared down by a third so we can get much better terms of the balance debt,” he added.
The iGATE CEO said there were early signs of larger transformation deals coming back and these could accelerate growth.
He said the demand environment was quite stable and the company’s deal pipeline was around $3.5 billion.