iGate Q4 net jumps 110% to USD 32.2 mn; rev growth marginal

NASDAQ-listed iGate today said its net income more than doubled to USD 32.2 million in the October-December quarter of 2012 on the back of corporate restructuring and strong customer additions.

This is against net income of USD 15.3 million in the year-ago period. "It is not a great quarter from revenue perspective but a stellar one from net income perspective. Our corporate restructuring programme has helped us immensely in increasing our net income," iGate CEO Phaneesh Murthy told reporters on a conference call.

The company's revenues were impacted by the investments it made in "re-orientation" of its sales force, coupled with reduced client spending.

"In the event of integration and consolidation, we have had to do quite a bit of unlearning and re-orientation to our sales force to be able to sell on an outcomes based proposition. Our investments in sales and marketing engines during the last two quarters should yield us results in 2013," he added.

The company's revenues for the reported period stood at USD 271.6 million, up marginally from USD 267.7 million in the fourth quarter of 2011. The company follows January-December fiscal year.

In 2011, iGate bought about 63 percent stake in Patni Computer, India's sixth largest information technology firm, for about USD 921 million (Rs 4,188 crore). iGate Chief Financial Officer Sujit Sircar said: "We successfully carried out the delisting process in India in 2012 and further completed the consolidations of our US subsidiaries."

For the fiscal 2012, net income of the software services firm stood USD 97.2 million, up 89 percent from USD 51.5 million in 2011. Its revenues for the full year rose 38 percent to USD 1.07 billion from USD 779.6 million in previous fiscal.

"The company added 14 new customers during the fourth quarter, including seven Fortune 1,000 companies," Murthy added, adding that the order pipeline is looking strong. iGate added 1,021 employees during the year, taking its headcount to 27,554 people.

As of December 31, the company's cash/investment stood at over USD 600 million, Sircar added. At the end of 2012, iGate's total debt stood at USD 1.1 billion, including a long-term loan of USD 770 million through US bonds and a short-term loan of USD 265 million from a Singapore bank.