Business process management firm Genpact has lowered its full-year revenue expectation to $2.12-2.13 billion from the earlier $2.15-2.20 billion on account of foreign exchange fluctuations, and lower-than-expected revenues in the last quarter.
“As a result of lower-than-expected revenues and improved margins, we are reducing our revenue guidance and increasing our margin guidance. Looking ahead, we continue to believe our addressable market is large and under-penetrated,” N.V. Tyagarajan, President and Chief Executive Officer, Genpact said.
In order to capture a larger share of this market, Genpact is targeting specific industry verticals, service lines and geographies where its offerings are differentiated, he said.
Meanwhile, the company reported over two-fold rise in net income at $70.26 million for the third quarter ended September 30, led by growth in banking and financial services, re-engineering and accounting. Its net income in the same period a year ago was $25.18 million.
Revenue during July-September was up nine per cent at $535 million from $491 million during the same quarter last year.
“Revenue growth was below our expectations. The three main drivers behind our lower than expected revenues were — foreign exchange headwinds impacting our non-US dollar revenues significantly more than anticipated, continued reduction in our mortgage and an increase in the value and proportion of large deals in our pipeline,” Tyagarajan added.
As of September 30, Genpact had 62,200 employees worldwide, up from 60,800 as of September 30, 2012.
ronendrasingh.s@thehindu.co.in