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iGATE Global net profit falls to Rs 1.4 crore

Our Bureau

Bangalore , July 14

IGATE Global Solutions said on Thursday that its net profit for the quarter ended June 30, 2005 fell by 37 per cent to Rs 1.4 crore, over the previous quarter's Rs 2.24 crore. However revenues grew marginally by 1.3 per cent during the quarter to Rs 147.49 crore from Rs 145.57 crore in the previous quarter.

On a year-on-year basis, net profits for the June quarter this year were sharply higher. iGATE had reported a net profit of Rs 11 lakh on revenues of Rs 141.56 crore in June quarter last fiscal. "In spite of a 13-per cent salary hike and a weakening euro, we are profitable," said Mr Phaneesh Murthy, CEO, iGATE Global. The company added 11 new clients during the quarter of which nine are in the Global 1000 space, Mr Murthy said.

The new wins included a multi-year large deal with a North American Financial Services Group. "The new wins are coming in at higher rates," Mr Murthy said adding this should lead to revenue ramp-ups in the following quarters. The offshore billing rates were up by 3.5 per cent during the quarter and the offshore efforts increased to around 67 per cent.

iGATE, Mr Murthy said, was shedding low-value sub-contract works and going in for high value work, which should help in strengthening the margins.

It has inducted Mr Karl Heinz Achinger, former board member of DaimlerChrysler Services AG onto the iGATE Global Solutions board.

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