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The New Jersey-headquartered integrated technology and operations solutions provider IGATE Corporation has
posted revenues of $322.8million in the third quarter ended September 30, a 10 per cent increase YoY over $293.4 million in the same period last year and a sequential increase of 3.5 per cent compared to $311.7 million in the second quarter of 2014.
Net income rose to $37.3 million this quarter from $31.9 million in the third quarter of 2013 and compared with $3.1 million in the second quarter of 2014 after a one-time charge of $51.8 million arising from extinguishment of debt. The company lowered its debt by another $126 million during the quarter bringing down its overall net debt burden to $448 million.
$150-million dealIGATE signed a deal with a North American client with a total contract value of $150 million this quarter. It is pursuing a pipeline of $500 million worth of deals and has concluded a total contract value of $550-600 million over the last one year.
Ashok Vemuri, President and CEO, said “I am pleased that we able to sustain our broad-based growth both sequentially and year over year. Our clients are responding positively to the changes we have implemented in the company and to our differentiated industry value proposition. We have put in place an aggressive client mining strategy this quarter and have ramped up our client servicing team. We have also set up a dedicated strategic deals team that is headed by Derek Kemp.”
As of September 30, 2014, the company had 34,455 employees with a net addition of 1,713. Attrition dipped from 15.4 per cent in Q2 to an industry record of 15.2 per cent unlike Infosys’ 20.1 per cent during the same quarter.
The company’s gross margins in Q3 fell to 35.3 per cent, compared with 41.4 per cent in the year-ago period. IGATE’s long-term goal is to achieve gross margins of 40 per cent.
Srikanth Iyengar joined IGATE as Senior V-P and head of Europe and Australia and member of the Executive Council. Prior to this,he was Vice-President, Regional Head – Financial Services, Europe and Head of UK Centre at Infosys.
The company added 5,400 new seats in various facilities spread across Noida, Hyderabad and Mumbai, for which hiring is ongoing.
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