Genpact(G) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenues for Q3 2024 reached $1,210,949, an increase of 6.6% from$ 1,135,792 in Q3 2023[4] - Gross profit for Q3 2024 was $431,438, up 7.1% from$ 402,830 in Q3 2023[4] - Net income for Q3 2024 was $132,818, representing a 12.9% increase compared to$ 117,593 in Q3 2023[4] - Earnings per share (diluted) for Q3 2024 increased to $0.74, up from$ 0.64 in Q3 2023[4] - Operating income for Q3 2024 was $181,650, a rise of 9.6% from$ 165,693 in Q3 2023[4] - The company reported a comprehensive income of $136,815 for Q3 2024, significantly higher than$ 76,726 in Q3 2023[5] - Net income for the nine months ended September 30, 2024, was $371,755,000, an increase from$ 339,946,000 in the same period of 2023, representing an increase of approximately 9.4%[10] - For the nine months ended September 30, 2024, total net revenues increased to $3,518,398, with AOI of$ 593,254, compared to $3,330,635 and AOI of$ 559,946 for the same period in 2023[114] Equity and Shareholder Returns - Total equity as of September 30, 2024, was $2,394,693, compared to$ 2,009,453 as of September 30, 2023[8] - The total number of common shares outstanding as of September 30, 2024, was 176,347,167, down from 181,412,399 as of September 30, 2023[8] - The company repurchased and retired 4,720,308 shares, resulting in a reduction of retained earnings by $167,515,000 during the nine months ended September 30, 2024[9] - The company paid dividends of$ 81,768,000 during the nine months ended September 30, 2024, compared to $75,230,000 in the same period of 2023, representing an increase of approximately 8.5%[10] - A dividend of$ 0.1525 per common share was declared for the three months ended September 30, 2024, totaling $26,939[8] Cash Flow and Liquidity - Net cash provided by operating activities increased to$ 412,177,000 for the nine months ended September 30, 2024, compared to $298,906,000 for the same period in 2023, reflecting a growth of approximately 38%[10] - Cash and cash equivalents at the end of the period increased to$ 1,022,647,000, compared to $541,004,000 at the end of the same period in 2023, marking an increase of approximately 88.9%[10] - The company experienced a net cash used for investing activities of$ 64,708,000 for the nine months ended September 30, 2024, compared to $60,070,000 in the same period of 2023, indicating a slight increase of about 7%[10] - The company had a net cash used for financing activities of$ 338,269,000 for the nine months ended September 2023, contrasting with a net cash provided of $92,578,000 in 2024[9] Expenses and Costs - Cost of revenue for Q3 2024 was$ 779,511, an increase from $732,962 in Q3 2023[4] - Stock-based compensation expense for the nine months ended September 30, 2024, was$ 47,276,000, down from $63,850,000 in the same period of 2023, a decrease of about 26%[10] - Selling, general and administrative expenses encompass costs related to management, recruitment, and investments in technology and automation[25] - The company reported a stock-based compensation expense of$ 63,850,000 for the nine months ended September 2023, compared to $47,276,000 in 2024, indicating an increase[9] Assets and Liabilities - The company reported an allowance for credit losses of$ 12,395,000 for the nine months ended September 30, 2024, compared to $5,081,000 in the same period of 2023, reflecting an increase of approximately 143%[10] - The total liabilities for derivative instruments as of September 30, 2024, amounted to$ 95,421, with $35,067 classified as Level 2 and$ 60,354 as Level 3[34] - The company recorded additions to the allowance for credit losses of $3,081 for the year ended December 31, 2023, and$ 7,051 for the nine months ended September 30, 2024[30] - The company’s total property, plant, and equipment net value increased from $189,803 as of December 31, 2023, to$ 207,592 as of September 30, 2024, representing an increase of about 9.4%[57] Accounting and Compliance - The company is assessing the impact of new accounting standards issued by the FASB, effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[29] - The company adopted ASU No. 2023-01 regarding leasehold improvements, effective January 1, 2024, with no material impact on consolidated results[28] - The company maintains compliance with financial covenants, including a maximum leverage ratio of less than 3x and an interest coverage ratio of more than 3x as of September 30, 2024[66] Segment Performance - The Financial Services segment generated net revenues of $331,552, while the Consumer and Healthcare segment reported$ 426,065, and High Tech and Manufacturing segment achieved $453,332[110] - The Data-Tech-AI services contributed$ 1,639,298 in net revenues for the nine months ended September 30, 2024, up from $1,558,279 in the prior year[116] Taxation - The Company's effective tax rate (ETR) for the three months ended September 30, 2024, was 24.3%, an increase from 24.1% for the same period in 2023[126] - For the nine months ended September 30, 2024, the ETR rose to 24.8% from 23.4% in the prior year, primarily due to lower tax deductions related to stock-based compensation[126] - The Company had unrecognized tax benefits of$ 18,771 as of September 30, 2024, down from $19,236 at the end of 2023[127]