iGATEnet rises 44% in Q1

Nasdaq-listed iGATE Corp's net income rose 44 per cent to $34.8 million in the first quarter ended March 31, 2013, from $24.1 million posted during the same period a year ago.

The revenues rose 4 per cent to $274.9 million from $263.3 million in the first quarter 2012, while gross margin was 38.1 per cent as against 40.2 per cent recorded during the corresponding quarter of 2012.

''I am pleased to see a steady start to the year. We have made significant investments in sales, marketing and branding in our markets. The pace at which we are adding quality new clients is satisfying,'' iGATE CEO Phaneesh Murthy said.

The company added 10 new customers during the quarter, six of which are Fortune 1000 companies, and had 28,204 employees as of March 31.

Murthy said that about two-thirds of the visa costs, which are generally accounted for in the second quarter, were absorbed in the first quarter this year. "The remaining one-third will be accounted for in the next quarter," he said.

''I am happy to see good earnings growth during the quarter. Our margins were a bit lower as a result of the visa related costs that we partially absorbed in the quarter,'' iGATE Chief Financial Officer Sujit Sircar said.

iGATE, which acquired Indian IT firm Patni Computer in 2011, has a debt of $1.1 billion and cash of $600 million.