On May 9, 2024, Genpact Ltd (G, Financial), a global leader in professional services and solutions, disclosed its first-quarter earnings for 2024, revealing a robust performance that exceeded revenue expectations and aligned with earnings per share (EPS) forecasts. The detailed financial outcomes can be reviewed in Genpact’s 8-K filing.
Company Overview
Genpact Ltd is at the forefront of business process management services, catering to a diverse range of industry verticals including banking, financial services, consumer goods, and healthcare, among others. Originating as a spin-off from General Electric, the company has a significant presence in India and continues to derive a substantial portion of its revenue from its founding firm.
Financial Performance Highlights
The first quarter of 2024 saw Genpact achieving a total revenue of $1.13 billion, marking a 4% increase year-over-year, which surpassed the analyst's expectation of $1.109 billion. This growth was supported by a 3% increase in Data-Tech-AI revenue and a 5% rise in Digital Operations revenue. The company's net income also saw a commendable rise, reaching $117 million, up by 10% from the previous year, although slightly below the estimated $124.91 million.
The diluted EPS stood at $0.64, reflecting a 12% increase, aligning closely with the estimated $0.68. The adjusted diluted EPS, which excludes certain non-GAAP adjustments, was $0.73, showing a 7% increase. These figures indicate a strong operational performance and effective cost management, underscored by a gross profit increase to $396 million from $370 million in the previous year, improving the gross margin to 35.0%.
Operational and Strategic Developments
Genpact's President & CEO, Balkrishan “BK” Kalra, highlighted the implementation of the '3+1 Execution Framework' during the quarter. This strategic initiative aims to enhance partnerships, streamline sales structures, and boost operational efficiency through AI-led transformations. This approach is already showing promising outcomes and is expected to significantly contribute to the company's future growth.
Future Outlook and Shareholder Returns
Looking ahead, Genpact has revised its full-year 2024 revenue forecast to range between $4.59 billion and $4.63 billion, indicating an expected growth of up to 3.7% on a constant currency basis. The company also anticipates an adjusted income from operations margin of around 17.0% and an adjusted diluted EPS between $3.01 and $3.04.
In terms of shareholder returns, Genpact reported the repurchase of approximately 865,000 common shares for about $30 million during the quarter, demonstrating ongoing commitment to delivering shareholder value.
Conclusion
Genpact's first-quarter results for 2024 reflect a solid financial and operational footing. The company's strategic initiatives, particularly in digital operations and Data-Tech-AI, are set to further solidify its market position. With a positive outlook and strong leadership, Genpact continues to be a noteworthy entity in the global professional services sector.
Explore the complete 8-K earnings release (here) from Genpact Ltd for further details.
