BUSINESS

iGate net rises 80% to Rs 10.6 cr

Source:PTI
October 11, 2006 15:58 IST
IT services provider iGate Global Solutions Ltd on Wednesday reported a 80 per cent year-on-year increase in net profit in second quarter ending September 30, 2006, to Rs 10.6 crore (Rs 106 million).

Revenues for this quarter increased by 30 per cent as compared to last fiscal to Rs 202.6 crore (Rs 2.02 billion), the company said.

iGate attributed the increase in net profit vis-à-vis revenues to better margins and higher billing rates from bigger clients.

"Margins are improving as a direct result of strategy of targeting Fortune 1,000 clients and higher price points," Phaneesh Murthy, chief executive officer, iGate said.

"Existing clients are ramping up their business with us and we have also added a number of new clients. We have reached a good, sustainable growth model," he added. The company is expecting a substantial increase in EBITA margins.

"By the end of March 2007 quarter we are expecting EBITA of 25 per cent from 10 per cent at present," Murthy said. He said that GE renewed its contract with the company for three years during the quarter.

In the second quarter the company added ten new clients of which five belong to 'Fortune 1,000' club. The number of clients with billing rate of more than $1 million has gone up to 26 from 23.

The company also added 400 employees during the quarter to take the total to 550. iGate also increased its stake by 55 per cent in US-based Loan Pro LLC, taking its total stake in the company to 60 per cent.

Source: PTI
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