iGate posts 110% jump in profit

Nasdaq-listed iGate has posted 110 per cent growth year on year in net profits for the fourth quarter on the back of a fall in income-tax expense. For the quarter, the company saw its tax expense decrease almost 250 per cent to $65 million from $169 million in the third quarter. The company posted profits of $32.2 million in the fourth quarter compared with $15.3 million for the same period in 2011. However, revenues were nearly flat at $271.6 million in the fourth quarter on a year on year basis. The company added 14 new customers during the fourth quarter, including seven Fortune 1000 companies. Of those, iGate bagged seven clients as a part of its new outcome-based business strategy. “Our recently launched brand campaign (on outcome-based business) will continue to improve our customer pipeline in this area,” said CEO, iGate, Phaneesh Murthy. The company added about 1,000 people during the fourth quarter of 2012. Murthy said that despite flat budgets, it expects more spending to happen in 2013 as compared with 2012. During calendar 2012, which is also its fiscal year, iGate completed its corporate restructuring after buying Patni for $1.2 billion in 2011. It has about $1.1 billion debt on its books at present.