After a tentative start to its new life with the acquisition of Mumbai-based Patni (see iGate - the challenges ahead), California-headquartered but India-centric IT/BP services player, iGate, is starting to get its joint act together.
Headline revenues for Q3 (to 30th Sept.) jumped from $170m the prior quarter to $266m, and EBIT margins almost trebled to 14.2%. CEO Phaneesh Murthy is “confident” that iGate can ramp EBITDA margins to 25% “in coming quarters”. This would add some 6 points to current EBITDA margins and put them back in range with top tier offshore peers. However, it sounds like this is dependent on getting the sales engine firing on all cylinders, as Murthy advised that they “still have some ways to go” to fix it.
I will be speaking with management soon and there’ll be lots more on the financial performance of the India-based players in the UK and Europe in the next edition of OffshoreViews, which only those blessed with a subscription to the TechMarketView Foundation Service will ever get to see. The rest, eat your hearts out – or better still, contact Deborah Seth (dseth@techmarketview.com) to find out how you can attain offshore enlightenment.