iGATE’s (IGTE, Financial) focus on client engagement has paid off as the company ended the last fiscal year with strong results. It delivered impressive results with a sequential improvement in key financials. Based on the results in the recently ended fiscal year, iGATE is optimistic about a better performance in the new fiscal year as well. It is engaged in various initiatives that might drive its performance further.
What next?
iGATE is looking forward to maintain an impressive balance sheet which will give much room to iGATE and attract many investors which will improve its market share. Among the key areas of its focus, the company is engaged in a conversation and exchange agreement with Viscaria Limited to convert it preferred stock into equity. This will impact the creditability of iGATE, posing a solid reflection on its balance sheet. Further, the company is making significant investments in improving the expertise that will help iGATE to deliver more targeted solution and services to its client base.
iGATE has changed its area of focus as it is now not much concerned about the non-strategic geographies and also has exit the non-strategic industry segments. It is now more focused on the implementation of robust process for new account qualification. The company is positive about this change and is thinking that it will drive its growth in future.
Moving ahead, iGATE is seeing a good improvement in its market image. This is supported by the recent news that the company has been recently awarded the Cyber Security Implementation of the year 2014 award from CSO forum which again strengthened its market position. Furthermore, iGATE has also won the coveted award on Excellence in Resource Management which is a bright sign for the company.
New launches will drive growth
Moreover, it is also focusing on other segments too. The company has also launched WIN (women in iGATE network). This is a good initiative by the company which is focusing on creating a platform which will trigger its efforts of creating a support system for women that will help them to grow in their workplace.
iGATE has made lot of achievements in the recently reported quarter and is continuing to achieve several milestones. The company is investing in creating additional delivery centers and increasing physical infrastructure. In the past, under this, it already added 9,800 seats during the year in India across all its centres and including two new delivery centres in Halifax and Budapest. It is making significant progress in its delivery capabilities and execution engine especially investing around two methodology such as automation and program management. All these efforts are expected to take iGATE to a better level of financial stability.
Conclusion
Moving to the fundamentals, the stock is showing decent earnings growth in near term as it is evident by the forward P/E of 14.49. The stock can attract the investors having a good profit margin of 8.68%. So the near term prospects of iGATE looks promising. I would like the investors to definitely include the stock in their portfolio for decent returns.
