Genpact Q4 net declines 8.6 pc to $48.8 million

BPO major Genpact today reported a 8.6 per cent decline in its net profit at $48.8 million for the fourth quarter ended December 31, 2013.

The company had reported a net profit of $53.4 million for the December quarter of 2012, Genpact said in a statement.

Revenues for the quarter under review stood at $558.5 million, up 10 per cent from $507.7 million in the same period of the previous year.

The company follows January to December fiscal year.

The NYSE-listed company's net profit for full-year in 2013 was up 28.9 per cent to $229.7 million, while revenues grew 12.1 per cent year-on-year to $2.13 billion.

Genpact expects headwinds to continue during the current fiscal and has projected its revenue in the range of $2.22 to 2.26 billion.

"The fundamentals of our business and our market opportunity have not changed and we continue to believe there is a long runway for growth where our competitive advantages are clear and compelling," Tyagarajan said.

To capture the right growth opportunities, Genpact is accelerating its investments in client-facing teams and solutions in specific verticals and service lines, he added.

"In the near-term, we expect the revenue headwinds we faced in 2013 to continue and, as a result, our revenue guidance for 2014 is $2.22 to $2.26 billion," he said.

"We faced a number of revenue headwinds during the year, including reduction in our mortgage originations business related to US mortgage refinancing volumes, softness in our GE business and the adverse impact of foreign exchange, as well as extended deal cycle times reflecting the increase in the value and proportion of large deals in our pipeline," Genpact President and CEO NV Tyagarajan said.

Although conversion to revenue in large, transformative deals tends to be longer, these engagements are where Genpact wants to be and is a positive trend for the medium-term, he added.

"Despite these challenges, we continued to deliver clear, measurable business outcomes for clients, differentiate our approach by building capabilities and domain expertise, and strengthen our relationships with existing clients, as well as add many new clients," Tyagarajan said.

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