Strong Fourth Quarter Helps Genpact Make 2007 a Solid Year

Indian BPO firm Genpact (NYSE: G) reported financial results Thursday for the fourth quarter and full year 2007 marked by net income for the year of $56.4 million, up 41.9 percent from 2006. 

The Guargon, India-based business process outsourcing specialist, formerly a division of General Electric, said that revenues increased 34.2 percent in the year to $822.7 million. The company said that organic growth in revenues was 27.7 percent, with acquisitions making up the balance of growth for the year.

In the fourth quarter revenues were $231.6 million, up 30.3 percent from the fourth quarter of 2006, and up 8 percent from the third quarter of 2007. Net income in the quarter was $31.2 million, up 109.5 percent from the fourth quarter of 2006 and up 91 percent from the third quarter of 2007.

Pramod Bhasin, Genpact’s President and CEO called the performance in 2007 “outstanding,” and noted that the company had a successful transition to publicly traded status (“Indian BPO-ARM IPO Finds Some Success on US Exchange,” Aug. 15, 2007).

“Revenues were up 34% for the year, driven by growth with existing Global Clients as well as growth with GE that exceeded plan. We also saw increasing demand for services from our delivery centers in Europe and China, as we continue to diversify and drive growth across key geographic markets,” he said.

Genpact was formed from an old GE unit called GECIS. The unit was tasked with delivering business services, including collections, to various segments of the GE corporate family. The firm got so large, it eventually started taking on outside clients. GE sold the firm to private equity in late 2004 and they took it public last year.

Although Genpact does not break out revenue by service type, the company says that its Collections and Customer Service group employs more than 5,000 people in offices in India, Mexico, the Philippines, China, Hungary and Romania. Overall, the company employs 31,700 people working at 30 locations worldwide.