The revenue for the quarter ended December rose 4% to $1.15 billion, beating expectations. Sequentially, the revenues grew marginally from $1.14 billion in Q3.
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“While the macroeconomic environment remains challenging, we have identified and begun to implement several key initiatives to improve execution. Looking ahead, 2024 will be a year of strengthening our foundation for future growth,” said president and chief executive officer Balkrishan (BK) Kalra.
Genpact forecasts total revenue for Q1FY24 in the range of $1.108-1.114 billion representing a modest growth of 1.75-2.25%. The growth on a constant currency basis is projected in the range of 1.95% to 2.45%. Gross margins are expected to remain flat at 35%.
Full-year revenue growth is expected to remain lower in the range of 2-3% yoy in the range of $4.57 billion to $4.61 billion.
The firm follows a January to December financial year.
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The US-headquartered firm made two senior-level appointments, hiring former Accenture executive Vipin Gairola as its global chief operating officer (COO) and expanded Vidya Rao’s role to chief technology and transformation officer. This is part of its digital transformation and AI-first strategy.The announcement comes as its new chief Kalra took charge effective Friday following NV (Tiger) Tyagarajan’s retirement after over 12 years at the helm. The appointment was announced in November.
“In 2024, we plan to invest in AI and partnerships… We are moving quickly to embed AI in all our solutions that we bring to the market and investing to make our internal operations into AI-first as well. For the first time we have appointed a chief technology and transformation officer who will lead the charge on embedding AI in our internal operations,” Kalra said in call with analysts after the results announcement.
Genpact reports around 45% of its revenues from data-tech AI services segment while the remaining comes from digital operations.
In the October to December period, revenue from data-tech-AI services stood at $507 million, up 3% year-over-year (2% on a constant currency basis) representing 44% of total revenue. While balance revenue from traditional/legacy business digital operations services was at $639 million, growing faster by 5% yoy (4% on a constant currency basis), representing 56% of total revenue. Within that, business segments including financial services increased 4% while consumer and healthcare witnessed 2% growth.
For the full year FY23, the tax benefit also pushed the company’s profit to $631.3 million or $3.41 per share rising by 79% yoy while revenue grew 2% yoy to $4.48 billion. In constant currency terms, the revenue was up 3% yoy. In comparison, revenue had grown by 9% in FY22.
Yearly revenue from data-tech-AI services was up 1.9% to nearly $2 billion representing 45% of total revenue and digital operations services revenue increased by approximately 3%.
New deal bookings were approximately at $4.9 billion, up 26% yoy signing record 14 new large deals with total contract value of $50 million.
As global COO, Gairola will lead the charge of transforming service delivery for Genpact’s clients by leveraging AI-led solutions and oversees Genpact’s global client operations, analytics, data, technology across all countries.
He is part of Genpact’s leadership council and will lead the company’s operations and cost council. Gairola comes to Genpact after an almost two-decade stint with Accenture, where he served in several strategic, sales and business transformation roles. His most recent role was chief strategy officer for Accenture Operations.
Meanwhile Rao who joined Genpact as chief information officer in 2019, takes on an expanded role of chief technology and transformation officer.
“In this role, she will be at the forefront of reimagining Genpact’s internal processes, tools, technologies, and infrastructure with an AI-first approach. Furthermore, Rao will also play a crucial role in establishing a world-class data office to fortify Genpact’s data capabilities. This will enable Genpact to harness the power of data and drive insights to guide our AI and Automation initiatives effectively and shape our internal functions for the future,” Genpact’s statement said.
Prior to Genpact, Rao was the managing director for products technology at Accenture for over 16 years.
“These appointments demonstrate the company’s continued focus on strengthening its executive team with transformative digital leaders to propel the company into its next chapter of growth, leveraging data, technology, and AI-first principles,” the company said in a statement.