IT services company iGATE Corporation, on Thursday, reported revenues of $1.07 billion in calendar 2012, an increase of 38 per cent. Net income attributable to iGATE Corporation, which acquired Patni Computers last year, amounted to $97.2 million in 2012, an increase of 89 per cent over the previous year. Gross margins in 2012 were 39.2 per cent, 1.5 percentage points higher than in 2011.
Addressing the media through a teleconference, Phaneesh Murthy, Chief Executive Officer, said the company expected IT spending to increase even though budgets themselves might be flat during 2013. Companies seeking IT services had spent a smaller fraction of their budgets in 2012, he explained. Commenting on the outlook for the year, Mr. Murthy said, “Customers have increased discretionary spending, especially in customer-facing applications, in areas such as social analytics and mobility.”
The company added 14 new clients, seven of them from the Fortune 1000, in the fourth quarter ending December 31, 2012. He said the higher margins were as a result of “bigger deals” and due to the “capital restructuring” that the company achieved as a result of the merger with Patni.
The company has a total debt of about $1.1 billion, of which $770 million is in U.S. bonds raised with a coupon rate of 9 per cent. The company had also raised short-term debt to the tune of $265 million, which was utilised for the Patni acquisition. The company had a cash balance of $600 million at the end of 2012, said Sujit Sircar, Chief Financial Officer.
