iGate 1st-quarter profit beats estimates, shares rise
(Reuters) - iGate's (IGTE.O) quarterly profit convincingly beat estimates despite delays in rolling out new projects, sending the software company's shares up more than 10 percent on Friday morning.
First-quarter revenue at the company, which offers business process outsourcing and software to handle offshore development and now operates under the brand name iGATE Patni, missed estimates, but it said it expects revenue growth to get back on track over the next couple of quarters.
IGate agreed to pay 520 rupees ($10.18) per share on Monday to buy the part of Indian outsourcing company Patni Computer Systems PTNI.NS PTI.N it did not already own - a price higher than it paid for a controlling stake last year.
IGate, which delisted from Indian stock exchanges in 2007, acquired a majority stake in Patni for 503 rupees per share, in January 2011.
First-quarter net income attributable to common shareholders rose to about $17 million, or 22 cents a share, from $15.2 million, or 22 cents a share, a year ago.
Excluding one-time items, the company earned 38 cents a share. Revenue jumped more than three-fold to $263.3 million.
Analysts expected an adjusted profit of 32 cents a share, on revenue of $270.3 million, according to Thomson Reuters I/B/E/S.
Larger rival Infosys (INFY.NS) INFY.O disappointed investors on Friday with a weaker-than-expected revenue growth outlook.
Shares of the company, which have gained 84 percent in value since touching a year-low of $9.32 in August 2011, rose to $18.95 on Friday morning on the Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Roshni Menon)