Genpact Reports Full Year 2009 Revenue Report

Genpact Limited, a provider of solutions to help manage business processes, announced financial results for the fourth quarter and full-year ended December 31.

In a February 4 release, Genpact said that for the fourth quarter, revenues of $296.9 million were up 5 percent from a year earlier, and up 4 percent sequentially over the prior quarter. For the full year, revenues were $1.12 billion, up 8 percent from the prior year. For the fourth quarter of 2009, net income attributable to Genpact Limited shareholders was $34.6 million, compared to $47.0 million in the fourth quarter of 2008, and for the full year, net income attributable to Genpact Limited shareholders was $127.3 million, up 1.7 percent from $125.1 million in 2008.

"Our results for 2009 were very good in light of the global economy, and in line with guidance. In the second half of the year and especially in the fourth quarter of 2009, we made planned investments for growth which affected net income in the fourth quarter," said Pramod Bhasin, Genpact's President and CEO. "These investments are already producing results. We had a terrific close to the year, as revenues increased four percent sequentially and five percent year-over-year. Revenues were up eight percent for the year, driven by strong growth from Global Clients."

According to Genpact, highlights of the 2009 fiscal year include:

-- Revenues were $296.9 million, up 5.4 percent from $281.8 million in the fourth quarter of 2008.

-- Net income attributable to Genpact Limited shareholders was $34.6 million, compared to $47.0 million in the fourth quarter of 2008; net income margin for the fourth quarter of 2009 was 11.6 percent, compared to 16.7 percent in the fourth quarter of 2008.

-- Diluted earnings per common share were $0.16, compared to $0.22 per share in the fourth quarter of 2008.

-- Adjusted income from operations totaled $54.7 million, compared to $58.8 million in the fourth quarter of 2008.

-- Adjusted income from operations margin was 18.4 percent, compared to 20.8 percent in the fourth quarter of 2008.

-- Adjusted diluted earnings per share were $0.19, compared to $0.23 in the fourth quarter of 2008.

Genpact's clients are in a range of industries. In 2009, banking, financial services and insurance clients represented 44 percent of revenues, while manufacturing clients that included aircraft, infrastructure, and automotive businesses accounted for 39 percent. The remaining 17 percent of revenues for 2009 came from clients providing healthcare, retail, transportation and logistics, media and entertainment and hospitality services.

Among the many services and solutions Genpact provides to its clients, in 2009, BPM services accounted for approximately 84 percent of total revenues up from 80 percent in 2008, while revenues from IT services were 16 percent. The decrease in IT revenues reflected the continuing industry softness in discretionary spending in areas such as software services.

For 2009 adjusted income from operations margin improved by 63 basis points to 17.8 percent from 17.1 percent in 2008. Margin expansion was driven by improved productivity and disciplined management of costs. Margin improvement was also net of a significant investment in growth, including marketing and business development, especially in the second half of the year, and the fourth quarter in particular.

Cash from operations totaled $158 million in 2009, down from $211 million in 2008, primarily due to increased working capital requirements and the expected increase in the effective tax rate.