Vemuri’s entry marks a new beginning for iGate
iGate seems to have put behind all the fears that were created after Phaneesh Murthy’s controversial exit from the company. Murthy, who had been instrumental in taking the company to the billion dollar club, was sacked for not reporting a relationship with a subordinate. But with the company reporting strong third quarter results, all the doubts have been put to rest. Analysts are saying the company could well be heading for better times with the change in leadership.
Infosys veteran Ashok Vemuri who recently joined the company as its CEO couldn’t have got a better start. In the third quarter results announced yesterday, iGate has reported a revenue increase of 3.6% to $293.4 million in the quarter, compared to $283.3 million in the preceding June quarter. This is 8.2% higher when compared to the same period last year. The company has recorded net profits of $31.9 million, which implies a healthy 12.7% growth when compared to the same period last year or 6.3% rise on a sequential basis.
Vemuri says, “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.”
iGate CFO Sujit Sircar says, “Overall it has been a very good quarter for iGate. Our operational efficiencies coupled with a positive gain out of the Indian Rupee depreciating against the US Dollar resulted in an expansion of our margins and earnings. We also generated $86 million of operating cash during the quarter which is another positive.”
The company’s share price, which had dipped to an all time low in May after Murthy’s exit, has also seen a whopping rise by 113% in the last quarter.
It seems the market has reacted quite positively to Vemuri’s entry into iGate. Experts believe that in the present situation, iGate couldn’t have found a better candidate as Vemuri is known for his ability to manage complex business and political environment. He also has a good association with investors and brokerages and was instrumental in establishing Infosys’ North American business.
Although Vemuri has not announced any major changes yet, he will certainly bring tremendous value with his strengths at client management, operational expertise and delivery experience.
Commenting on iGate’s delivery model, Vemuri says, “Our iTOPS model is a clear differentiator in the IT services marketplace. Clients are increasingly looking for partners to deliver solutions that can integrate emerging technologies with business process expertise to drive innovation and value. This is what our iTOPS model does and its increasing acceptance positions the company well among its competitors.”
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