iGATE Corporation announced on Wednesday that it earned revenues of $267.7 million during the fourth quarter ended December 31, 2011, an increase of 230 per cent over the previous year.
The company, which acquired a majority stake in Patni Computer Systems for $1.2 billion in January 2011, earned a net income of $15.3 million during the fourth quarter.
Phaneesh Murthy, Chief Executive Officer, iGATE Patni, the brand of the combined entity, said although the company was committed to gain the “strategic benefits” associated with the delisting of Patni, “We are somewhat nervous about whether we can afford to complete the delisting process.”
He was referring to the fact that the initial decision to acquire shares was made when the price was about Rs.350 per share; it had touched Rs.502, a 52-week high, on Wednesday.
Observing that the company had arranged for a debt of $215 million to fund the share purchase, he said, “We are concerned whether we can service a debt that is beyond this level.” “We are comfortable with the option of managing Patni as separately listed company, if necessary,” he added.
The company earned revenues of $779.6 million during the full financial year, 178 per cent higher than a year earlier. Mr. Murthy said although “adverse” currency movements had impacted margins, the company “is comfortable” with the gross margin of 40 per cent that it achieved in the fourth quarter.
To a question, he said, “our focus is more on increasing volumes because we are comfortable with our margins.”