On November 7, 2024, Genpact Ltd (G, Financial) released its 8-K filing for the third quarter of 2024, showcasing impressive financial results that exceeded analyst expectations. Genpact Ltd, a provider of business process management services, reported a total revenue of $1.21 billion, marking a 7% increase year-over-year, and a diluted EPS of $0.74, up 16% from the previous year. The company's adjusted diluted EPS stood at $0.85, reflecting a 12% increase.
Company Overview
Genpact Ltd (G, Financial) is a global professional services firm specializing in business process management. The company serves a diverse range of industries, including banking, financial services, insurance, capital markets, consumer products, life sciences, infrastructure, manufacturing, healthcare, and high-tech. Genpact's offerings encompass a wide array of services such as risk and compliance, human resources, IT, finance and accounting, and media services. Originally a spin-off from General Electric, Genpact continues to derive significant revenue from its former parent company.
Performance Highlights and Challenges
Genpact Ltd's performance in Q3 2024 was driven by robust growth in its Data-Tech-AI segment, which generated $569 million in revenue, a 9% increase year-over-year. This segment now accounts for 47% of the company's total revenue. Meanwhile, the Digital Operations segment contributed $642 million, up 5% from the previous year, representing 53% of total revenue. The company's gross profit reached $431 million, with a margin of 35.6%, while net income rose to $133 million, reflecting a 13% increase.
We delivered strong results again this quarter, with accelerating revenue growth, driven primarily by client trust in our ability to innovate across Data, Tech and AI," stated Balkrishan “BK” Kalra, Genpact's President and CEO.
Financial Achievements and Industry Significance
Genpact Ltd's financial achievements underscore its strategic focus on leveraging advanced technologies to drive client value. The company's ability to grow its adjusted EPS faster than revenue for the fourth consecutive year highlights its operational efficiency and disciplined approach. The increase in cash flow from operations to $228 million, up from $162 million in Q3 2023, further strengthens its financial position.
Key Financial Metrics
| Metric | Q3 2023 | Q3 2024 | Change |
|---|---|---|---|
| Total Revenue | $1.14 billion | $1.21 billion | +7% |
| Net Income | $117.6 million | $133 million | +13% |
| Diluted EPS | $0.64 | $0.74 | +16% |
| Adjusted Diluted EPS | $0.76 | $0.85 | +12% |
Analysis and Outlook
Genpact Ltd's strong performance in Q3 2024 reflects its successful execution of strategic initiatives focused on data, technology, and AI. The company's ability to exceed analyst estimates for both revenue and earnings per share underscores its competitive edge in the professional services industry. However, challenges such as macroeconomic uncertainties and technological advancements remain potential hurdles. Genpact's proactive approach to innovation and client engagement positions it well to navigate these challenges and sustain growth.
For the fourth quarter of 2024, Genpact projects total revenue in the range of $1.222 billion to $1.233 billion, with continued growth in both its Digital Operations and Data-Tech-AI segments. The company's updated full-year outlook anticipates revenue growth of approximately 6% and adjusted diluted EPS in the range of $3.23 to $3.24, reflecting its confidence in maintaining momentum.
Explore the complete 8-K earnings release (here) from Genpact Ltd for further details.
