iGATE Q3 net up 13 %

Special Correspondent
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Ashok Vemuri
Ashok Vemuri

iGATE Corporation opened the earnings season with a strong performance in its third quarter ended September 30, 2013. The company reported revenues of $293.4 million during the quarter, 8 per cent higher on an annualised basis. It reported a net profit of $31.9 million, 12.7 per cent higher than a year earlier. Gross margins improved 160 basis points from 39.8 per cent a year earlier.

Ashok Vemuri, who joined iGATE as President and CEO in September after a long career at rival Infosys, said, “I am pleased with our ability to accelerate revenue growth both sequentially and year-over-year.” He said he was happy with the “quality of deals” the company was winning, especially the engagements that were long-term in nature. He said the focus on “innovation and productivity gains to our customers” augured well for iGATE. Mr. Vemuri said iGATE’s outcome-based pricing model’s positioning was a “clear differentiator in the IT services market place.” He said the improved performance of the company reflected its “acceptance” by customers.

Chief Financial Officer Sujit Sircar said operational efficiencies and the decline of the rupee contributed to the improved margins and earnings. “We also generated $86 million of operating cash during the quarter, which is another positive,” he said.



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