Citing the macro economic environment world over, business process management (BPM) firm Genpact on Wednesday said that the company is expecting lower revenues than the targeted $2.15-2.20 billion this year.
“We now expect revenues for the full year 2013 to be in the lower half of our range of $2.15–2.20 billion. We continue to expect adjusted operating income margin in a range of 15.8–16.3 per cent,” N.V. Tyagarajan, President and Chief Executive Officer, Genpact, said in a statement.
He said the macro environment continues to be mixed - challenging for some industries and geographies, improving in others. “Large, transformational engagements are where we want to be, but they are complex and do have a longer decision cycle time,” he said.
As a result of these longer cycle times, together with more subdued GE revenues, the company is expecting lower figures from what was expected, he said. “We believe Genpact will continue to earn contract renewals and new business through client referrals. The firm will also bolster margin growth by productising the IP developed through client engagements and replicating them across clients within the same vertical,” Jennifer Hamel, Research Analyst at Technology Business Research, said.
The New York-based company follows January-December as its financial year.
Meanwhile, the company reported net income of $63.9 million for the second quarter ended June 30, up 4.5 per cent from $61.1 million in the corresponding quarter last year.
Led by growth in banking and financial services, consumer packaged goods, life sciences and healthcare and business services, revenue rose by 14.4 per cent to $534.8 million in April-June quarter from $467.6 million in the same period last year.
Revenue from global clients represented around 77.3 per cent ($413.2 million) of its total revenues with the remaining 22.7 per cent ($121.6 million) coming from GE.
GE revenues decreased 0.9 per cent from the second quarter of 2012, adjusted for dispositions by GE of businesses that Genpact continues to serve, it said.