Date:12/01/2006 URL: http://www.thehindubusinessline.com/2006/01/12/stories/2006011202300400.htm

Back iGATE operating profit up 127 pc in 3rd quarter

Our Bureau

Bangalore , Jan. 11

iGATE Global Solutions Ltd said on Wednesday that its operating profits for the third quarter ended December 2005 grew by 127 per cent to Rs 19.71 crore from Rs 8.66 crore in the corresponding quarter last year.

However, the company's net profit dropped due to high provisions for diminution in the value of unspecified long-term investments. Net profits for Q3 FY06 stood at Rs 1.30 crore as against Rs 15.84 crore in the corresponding quarter last year that included other income of Rs 15.64 crores on sale of assets.

Revenues for Q3 FY06 were up 15.1 per cent at Rs 165.15 crore as compared to Rs 143.46 crore recorded in the same period last fiscal.

Sequential revenues were up 6 per cent, while net profits were down by about 77 per cent over the previous quarter.

The operating profit margin for the third quarter doubled to 12 per cent from the earlier six per cent. iGATE added 447 employees during the quarter, taking the total employee strength to 4,803 as on December 31, 2005. Mr Phaneesh Murthy, CEO, iGATE, said, "Our existing customers, pleased with our execution, are contributing to our growth. We have put in place significant expansion plans in Canada and Japan."

iGATE added nine new clients during the quarter of which six are Fortune 1,000 companies. Revenues from the top 15 clients grew five per cent sequentially.

The company won a deal from the New York-based Asset Management firm to provide an integrated solution for fund administration processes.