IGATE Q3 Results Top Estimates - Update

(RTTNews) - Information technology company iGATE Corp. (IGTE) Thursday reported a higher third-quarter profit, with about 8 percent growth in revenues. Both earnings per share and revenues topped analysts' estimates. The shares rose more than 8 percent in pre-market trading.

Sujit Sircar, CFO of the company stated, "Our operational efficiencies coupled with a positive gain out of the Indian Rupee depreciating against the U.S. Dollar resulted in an expansion of our margins and earnings."

Gross margin improved to 41.4 percent from 39.8 percent a year earlier. The company also said it added eight new customers during the quarter, including two Fortune 1000 companies.

In the third quarter, net income attributable to shareholders increased to $23.78 million or $0.30 per share from $20.77 million or $0.27 per share reported last year.

On an adjusted basis, earnings per share were $0.46 for both the periods. On average, seven analysts polled by Thomson Reuters expected earnings per share of $0.43 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew 8.2 percent to $293.41 million from $271.09 million a year earlier, and came above analysts' estimate of $289.38 million. Revenues were up 3.6 percent sequentially.

Ashok Vemuri, president and CEO of the company said, "I am pleased with our ability to accelerate revenue growth both sequentially and year-over-year. I am also happy with the quality of deals we are winning that are longer-term in nature with focus on innovation and productivity gains to our customers."

Ashok Vemuri was appointed to the position effective September 16, 2013.

IGTE closed Wednesday's regular trading at $27.59 on the Nasdaq. In the pre-market activity on Thursday, the shares are up 8.37 percent.