Wednesday, July 16, 2014

iGate's Q2 net profit declined to USD 3.1 million due to debt repayment of $51.8 million

 iGate's net profit declined by 89.6 per cent to USD 3.1 million for the quarter ended June 30, 2014 mainly due to  one-time charge of $51.8 million arising from debt settlement.

Second Quarter Highlights

Revenues were $ 311.7 million
Increased 10.1% compared to $283.3 million in the second quarter of 2013
Increased 3.2% sequentially compared to $302.2 million in the first quarter of 2014

Gross margin was 36.6%
Compared to 37.9% in the second quarter of 2013
Compared to 37.5 % in the first quarter of 2014

Adjusted EBITDA was $70.0 million
Compared to $66.2 million in the second quarter of 2013
Compared to $75.2 million in the first quarter of 2014
Net Income  was $3.1 million (after a one-time charge of $51.8 million arising from the extinguishment of  debt)
Compared to $30.0 million in the second quarter of 2013
Compared to $31.6 million in the first quarter of 2014


Non GAAP diluted Earnings per share were $0.48
Compared with $0.44 in the second quarter of 2013
Compared with $0.45 per share in the first quarter of 2014
Diluted earnings per share were $(0.07) GAAP (after a one-time charge of $51.8 million arising from the extinguishment of debt)
Compared to $0.28 GAAP in the second quarter of 2013
Compared to $0.29 GAAP in the first quarter of 2014

The Company added nine new clients including five Global 2000 companies during the second quarter

As of June 30, 2014, the Company had 32,742 employees with a net addition of 1,907
Ashok Vemuri, President and Chief Executive Officer, IGATE said, “Our new brand identity and redesigned value proposition has resonated well with all our stakeholders. We continue to invest in technology and process capabilities with specific focus on our Digital Practice. The verticalization strategy we implemented at the beginning of the year has started yielding dividends with overall growth across industry segments.”

Sujit Sircar, Chief Financial Officer, IGATE said, “We successfully refinanced the high yield bonds placed in 2011 at a much lower interest cost subsequent to the rating upgrades from S&P and Moody’s. This has enabled us to reduce more than $50 million in interest cost annually on a Q1 run rate basis.”


“We are happy to have maintained our margin levels despite the salary increase this quarter; however we are closely watching the forex headwinds with the appreciation of the Rupee against the U.S. Dollar,” he added.