Genpact(US:G)2025-05-12 18:48Financial Performance - Net revenues increased from $1,131,237 in Q1 2024 to $1,214,926 in Q1 2025, representing a growth of approximately 7.4%[12] - Gross profit rose from $396,478 in Q1 2024 to $428,994 in Q1 2025, an increase of about 8.2%[12] - Net income for Q1 2025 was $130,853, up from $116,947 in Q1 2024, reflecting a growth of approximately 11.9%[12] - Earnings per diluted share increased from $0.64 in Q1 2024 to $0.73 in Q1 2025, a rise of about 14.1%[12] - Comprehensive income for Q1 2025 was $159,990, compared to $112,303 in Q1 2024, indicating a growth of about 42.3%[15] - Net income for the three months ended March 31, 2025, was $130,853, an increase of 11.5% from $116,947 in the same period of 2024[23] - Basic earnings per common share increased to $0.75 for the three months ended March 31, 2025, up from $0.65 in the same period of 2024[193] Assets and Liabilities - Total assets decreased from $4,987,153 as of December 31, 2024, to $4,894,958 as of March 31, 2025, a decline of approximately 1.8%[9] - Total liabilities decreased from $2,597,542 as of December 31, 2024, to $2,441,897 as of March 31, 2025, a reduction of about 6.0%[9] - Shareholders' equity increased from $2,389,611 as of December 31, 2024, to $2,453,061 as of March 31, 2025, an increase of approximately 2.7%[9] - As of March 31, 2025, the total long-term debt of the company is $1,215,262, a slight decrease from $1,221,440 as of December 31, 2024[137] - The outstanding amount under the Company's term loan was $469,546 as of March 31, 2025, down from $476,089 as of December 31, 2024[128] Cash Flow and Investments - Net cash provided by operating activities increased significantly to $40,436 in 2025, compared to a cash outflow of $(25,561) in 2024[23] - The company reported a net cash used for investing activities of $779 in 2025, a substantial improvement from $(24,672) in 2024[23] - Net cash used for financing activities increased to $(125,544) in 2025, compared to $(48,200) in 2024, indicating higher financing outflows[23] - Cash and cash equivalents at the end of the period rose to $561,615 in 2025, up from $478,398 in 2024[23] Credit and Allowance for Losses - The allowance for credit losses decreased to $7,294 in 2025 from $10,897 in 2024, reflecting improved credit quality[23] - For the three months ended March 31, 2025, the allowance for credit losses increased to $19,747, with net accounts receivable dropping to $1,192,094[79] - The company recorded additions to the allowance for credit losses of $7,582 for the year ended December 31, 2024, and $8,742 for the three months ended March 31, 2025[79] Stock-Based Compensation and Dividends - Stock-based compensation expense increased significantly to $20,036 in 2025, compared to $9,181 in 2024[23] - The company paid $29,784 in dividends in 2025, up from $27,492 in 2024, indicating a commitment to returning value to shareholders[23] - The Company granted 816,936 restricted share units (RSUs) during the three months ended March 31, 2025, with a weighted average grant date fair value of $49.61[165] - The total remaining unrecognized stock-based compensation cost related to RSUs as of March 31, 2025, was $63,728, to be recognized over a weighted average remaining requisite vesting period of 2.1 years[167] Segment Performance - For the three months ended March 31, 2024, the total net revenues were $1,131,237,000, with a year-over-year increase in Financial Services, Consumer and Healthcare, and High Tech and Manufacturing segments[201] - The adjusted income from operations (AOI) for the Financial Services segment was $47,003,000, while Consumer and Healthcare and High Tech and Manufacturing segments reported AOIs of $66,796,000 and $69,046,000 respectively[201] - For the three months ended March 31, 2025, total net revenues increased to $1,214,926,000, reflecting growth across all segments compared to the previous year[204] - The AOI for the Financial Services segment rose to $58,192,000, with Consumer and Healthcare and High Tech and Manufacturing segments reporting AOIs of $70,324,000 and $80,115,000 respectively[204] Compliance and Regulatory Changes - The Company maintained compliance with financial covenants, including a net debt to EBITDA leverage ratio of less than 3x and an interest coverage ratio of more than 3x as of March 31, 2025[127] - The Company adopted ASU No. 2023-07 for segment reporting, enhancing the transparency of segment-related financial information[199] - The company is assessing the impact of ASU No. 2023-09 on its disclosures, which enhances income tax disclosures and is effective for fiscal years beginning after December 15, 2024[75] Operational Presence - The company has over 145,000 employees serving clients in key industry verticals from more than 35 countries, indicating a strong operational presence[26]