iGate net falls 26 pc in Q1
iGate Global Solutions reported 26% year-on-year fall in its net profit in the first quarter ending June 30 to Rs 1.1 crore.india Updated: Jul 12, 2006 16:16 IST
Software and BPO company iGate Global Solutions on Wednesday reported 26 per cent year-on-year fall in its net profit in the first quarter ending June 30 to Rs 1.1 crore.
The revenue of the company during the quarter, however, increased 23 per cent to Rs 181.6 crore.
"The decrease in net profit was due to wage increase and property tax pay-out for the Bangalore campus," Chief Executive Officer of iGate Global Solutions Phaneesh Murthy said.
He said that the revenue visibility and growth for the coming quarters look good. "As we deepen our engagement with our clients our revenue predictibility is becoming better," Murthy said adding with revenue growth looking good the company would now get the profits growing.
He said that company won four new customers during the first quarter to take the total number of active clients to 101.
"We have some of the largest financial institutions as our clients, both for IT and BPO. We have decided to concentrate on financial services space as they are the biggest spenders and our model is suitable for them," Murthy said.
"Two new customers that the company added in 2004-05 made it to the top ten client list which shows that new customers were driving growth," he said.
IGate added 264 new employees during the quarter to take the total to 5,500.
The company is building phase three of its campus in Bangalore which will have 900 seats and will become operational by March 2007.