Calcutta, April 10: iGATE, an integrated technology and operations solutions provider, today posted a 9.19 per cent decline in net profit at $31.6 million for the first quarter ended March 31, 2014 against $34.8 million in the same quarter a year ago.
Net profit stood at $33.1 million in the previous quarter.
Revenues of the Nasdaq-listed company rose about 10 per cent to $302.2 million from $274.9 million in the same period last year.
“We had an encouraging start to the year with a 10 per cent year-on-year growth in revenues. Overall market conditions appear to be favourable across the board. With a healthy pipeline, along with the timely rollout of investments in people and solutions, iGATE believes it is well positioned for sustainable growth,” said Ashok Vemuri, president and chief executive officer.
The IT firm bagged nine customers during the first three months of the year.
As on March 31, 2014, it had 30,835 employees with a net addition of 1,102 during the quarter.
“We successfully secured financing to redeem our $770 million 9-per-cent senior notes through a combination of $325 million of new 4.75-per-cent senior notes due in 2019 and bank financing,” Sujit Sircar, chief financial officer of iGATE, said.
A senior note is a debt security, or bond, that takes precedence over other unsecured notes and must be repaid in bankruptcy.
According to Sircar, this refinancing is expected to yield significant cost savings over the coming quarters.
“I am also pleased with the company’s cash-flow position during the quarter. However, the rupee fluctuation because of the forex headwinds will be a concern as we continue to grow our profits,” he said.
Diluted earnings per share on a GAAP basis stood at $0.29 in the first quarter.
During the quarter, iGATE won key contracts from a leading mining company based in Europe, an apparel retailing company in North America and a large global financial institution based in the same region.
The company has also been engaged by a restaurant chain in North America to assist in architecture and design of its next-generation digital platform.