Genpact (G) has reported 9.28 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $53.34 million, or $0.26 a share in the quarter, compared with $58.79 million, or $0.27 a share for the same period last year. On an adjusted basis, profit per share for the quarter was stable at $0.31, when compared with the last year period.
Revenue during the quarter went up marginally by 2.18 percent to $623 million from $609.70 million in the previous year period. Gross margin for the quarter contracted 38 basis points over the previous year period to 38.47 percent. Total expenses were 87.30 percent of quarterly revenues, down from 87.60 percent for the same period last year. This has led to an improvement of 29 basis points in operating margin to 12.70 percent.
Operating income for the quarter was $79.10 million, compared with $75.62 million in the previous year period.
However, the adjusted operating income for the quarter stood at $85.38 million compared to $88.11 million in the prior year period. At the same time, adjusted operating margin contracted 75 basis points in the quarter to 13.71 percent from 14.45 percent in the last year period.
"We delivered solid first quarter results, highlighted by continued momentum from our transformational services in consulting, digital and analytics driving our Global Client BPO growth," said N.V. ‘Tiger’ Tyagarajan, Genpact’s president and chief executive officer. “Our clients are excited about our recent acquisitions. RAGE Frameworks adds tremendous capabilities in the area of Artificial Intelligence, and BrightClaim expands our deep insurance domain expertise. Our investments in digital, domain and analytics have cemented our reputation as a digital transformation thought leader.”
For fiscal year 2017, Genpact expects revenue to be in the range of $2,630 million to $2,700 million. The company expects adjusted operating income to grow at 15.70 percent, the company projects diluted earnings per share to be in the range of $1.53 to $1.57 on adjusted basis.
Operating cash flow turns positiveGenpact has generated cash of $31.03 million from operating activities during the quarter as against cash outgo of $9.62 million in the last year period. The company has spent $29.01 million cash to meet investing activities during the quarter as against cash outgo of $31.48 million in the last year period. It has incurred net capital expenditure of $19.31 million on net basis during the quarter, down 23.87 percent or $6.05 million from year ago period.
The company has spent $42.01 million cash to carry out financing activities during the quarter as against cash inflow of $20.42 million in the last year period.
Cash and cash equivalents stood at $388.19 million as on Mar. 31, 2017, down 9.68 percent or $41.61 million from $429.80 million on Mar. 31, 2016.
Working capital increases
Genpact has recorded an increase in the working capital over the last year. It stood at $695.37 million as at Mar. 31, 2017, up 8.05 percent or $51.81 million from $643.56 million on Mar. 31, 2016. Current ratio was at 2.33 as on Mar. 31, 2017, up from 2.09 on Mar. 31, 2016.
Days sales outstanding went down to 86 days for the quarter compared with 89 days for the same period last year.
At the same time, days payable outstanding was almost stable at 2 days for the quarter, when compared with the previous year period.
Debt increases substantiallyGenpact has witnessed an increase in total debt over the last one year. It stood at $1,089.97 million as on Mar. 31, 2017, up 28.51 percent or $241.78 million from $848.19 million on Mar. 31, 2016. Total debt was 37.43 percent of total assets as on Mar. 31, 2017, compared with 29.83 percent on Mar. 31, 2016. Debt to equity ratio was at 0.92 as on Mar. 31, 2017, up from 0.63 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
