Foreign exchange losses have led to declining net profits of major business process management (BPM) companies such as Genpact and Convergys during the fourth quarter last year.
Genpact on Friday reported a net income of $48.8 million for the fourth quarter ended December 31, a decline of 8.6 per cent compared with $53.4 million in the same period previous year.
Similarly, Convergys also had reported net income of $25 million for the same quarter, a decline of 22 per cent compared with $32 million in the fourth quarter in 2012.
However, revenues of both the companies were up during the quarter. While Genpact’s revenue was up 10 per cent to $558.5 million during the quarter, Convergys’ revenue was up four per cent to $527 million.
revenues Genpact and Convergys had reported revenues of $507.7 million and $509 million, respectively, in the fourth quarter of 2012.
“For the full year 2013 revenues, operating income and earnings per share increased and we held adjusted operating income margin steady,” NV Tyagarajan, President and Chief Executive Officer, Genpact, said. The company follows January to December as its financial year. The company said it expects headwinds to continue during the current financial year and has projected its revenue in the range of $2.22-2.26 billion.
“We faced a number of revenue headwinds during the year, including reduction in our mortgage originations business related to US mortgage refinancing volumes, softness in our GE business and the adverse impact of foreign exchange, as well as extended deal cycle times reflecting the increase in the value and proportion of large deals in our pipeline,” Tyagarajan said. The company had around 63,600 employees worldwide as of December 31, as against around 60,200 at the end of 2012, he added.