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Genpact’s technology services drive quarterly revenue growth

Genpact’s third-quarter revenue rose 7.3 per cent, with advanced technology services expanding rapidly while core business services remained flat. Technology now contributes 29 per cent of revenue. Gross profit grew faster than sales, and management raised its annual gross-margin and adjusted earnings-growth forecasts after the quarter’s results.

Economics & Markets··Midday
Wide view of a Genpact technology-services office campus, with glass façades, a landscaped courtyard and distant employees walking toward the building.

Revenue grows in the September quarter

Genpact increased third-quarter revenue by 7.3 per cent from a year earlier. The business-process and technology services company’s quarterly sales exceeded market expectations, while faster expansion in advanced technology contrasted with flat core services revenue.[1], [2]

Net revenue was 1.385 billion dollars for the quarter ended September 30, growing 7.5 per cent at constant currency. Advanced Technology Solutions contributed 405 million dollars, up 30.3 per cent, and accounted for 29 per cent of the total. Core Business Services generated 980 million dollars, or 71 per cent.[1]

Gross profit rises faster than revenue

Gross profit increased 12.1 per cent to 527 million dollars, with a 38.0 per cent margin. Operating income rose 10.1 per cent to 211 million dollars. Net income grew 4.0 per cent to 152 million dollars, and diluted earnings reached 0.89 dollars per share. Adjusted diluted earnings increased 10.3 per cent.[1]

Management lifts margin and earnings-growth forecasts

Management now expects a full-year gross margin of about 36.9 per cent and adjusted diluted earnings-per-share growth of at least 13 per cent. Its annual revenue-growth forecast is at least 7 per cent as reported, with advanced technology expected to grow at least 25 per cent. Operations generated 93 million dollars in quarterly cash, while repurchases and dividends each returned about 31 million dollars.[1]

References

  1. News sourceGenpactGenpact raises profit outlook as technology services drive growth↩1↩2↩3↩4
  2. News sourceStockStoryGenpact’s third-quarter revenue grows↩
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