Business processes and technology services provider Genpact Ltd. (G) reported Thursday a 26% year-over-year drop on profit for the fourth quarter as revenue growth was more than offset by increase in expenses. The company also provided revenue growth guidance for the full year 2010.
In a statement, president and chief executive officer, Pramod Bhasin said, "Our results for 2009 were very good in light of the global economy, and in line with our 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. These investments are already producing results."
The Hamilton, Bermuda-based company reported net income of $34.59 million or $0.16 per share for the fourth quarter, down from $47.0 million or $0.22 per share in the prior-year quarter. Excluding items, adjusted net income for the quarter dropped to $42.01 million or $0.19 per share from $50.45 million or $0.23 per share in the year-ago quarter.
Total revenues for the quarter grew 5.4% to $296.9 million from $281.8 million in the year-ago quarter.
Income from operations for the quarter declined to $46.32 million from $50.81 million in the prior-year quarter, and adjusted income from operations decreased to $54.65 million from $58.76 million in the year-ago quarter.
Gross profit for the quarter was $120.8 million, up from $111.6 million in the year-ago quarter. The company ended the fourth quarter with cash and cash equivalents of $184.05 million, compared to $288.73 million at end of the prior-year quarter.
For fiscal 2009, the company reported net income of $127.30 million or $0.58 per share, up from $125.14 million or $0.57 per share in the year ago. Adjusted net income for the year decreased to $160.71 million or $0.73 per share from $166.22 million or $0.76 per share last year.
Total net revenues for the full year increased 7.6% to $1.12 billion from $1.04 billion in the previous year.
"We are beginning 2010 with solid momentum, including a strong pipeline with increased demand across all geographies and industry verticals, the ramp-up of recent client wins, the GE contract extension and a strategic acquisition. In January we extended our long-term contract with GE through 2016. This extension underscores our long-standing position as GE's preferred business process management provider," Bhasin added.
Looking ahead, the company noted that it expects revenue growth in 2010 of 14% to 17% as its pipeline is fuller than ever. This will be led by growth from Global Clients segment, and also from the recent acquisition of Symphony Market Solutions. Adjusted operating income margins are expected to be 17% to 18%, the company added.
G closed Thursday's regular trading session at $14.65, down $0.33 or 2.20% on a volume of 0.28 million shares, lower than the three-month average volume of 0.34 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.