Genpact Limited (G) Bundle
A Brief History of Genpact
Company Overview
Genpact Limited (NYSE: G) is a global professional services firm that provides solutions aimed at transforming business operations. As of 2024, Genpact operates in over 30 countries and employs more than 125,000 people, focusing on industries such as finance, healthcare, and technology.
Key Financial Performance
For the third quarter of 2024, Genpact reported total revenues of $1.21 billion, reflecting a year-over-year growth of 7%. The company's gross profit for the same period was $431 million, yielding a gross margin of 35.6%.
| Financial Metric | Q3 2023 | Q3 2024 |
|---|---|---|
| Total Revenue | $1.13 billion | $1.21 billion |
| Gross Profit | $402 million | $431 million |
| Net Income | $117 million | $133 million |
| Income from Operations | $166 million | $182 million |
| Adjusted Diluted EPS | $0.76 | $0.85 |
Revenue Breakdown
In Q3 2024, Genpact's revenue was divided into two main segments:
- Data-Tech-AI: $569 million (47% of total revenue, up 9% year-over-year)
- Digital Operations: $642 million (53% of total revenue, up 5% year-over-year)
Operating Expenses
Genpact's operating expenses for Q3 2024 included:
- Selling, General and Administrative Expenses: $243 million
- Amortization of Acquired Intangible Assets: $6.5 million
Cash Flow and Capital Management
For the nine months ending September 30, 2024, Genpact generated $412 million in cash from operations, up from $299 million in the same period of 2023. In Q3 2024, the company repurchased approximately 1.9 million shares for about $75 million at an average price of $38.72 per share.
| Cash Flow Metric | 9M 2023 | 9M 2024 |
|---|---|---|
| Net Cash Provided by Operating Activities | $299 million | $412 million |
| Cash Flow from Operations (Q3) | $162 million | $228 million |
Future Outlook
For the full year 2024, Genpact projects total revenue between $4.740 billion and $4.751 billion, representing a growth of approximately 5.9% to 6.1%. The adjusted diluted earnings per share is expected to be in the range of $3.23 to $3.24.
| Future Financial Outlook | 2024 Estimate |
|---|---|
| Total Revenue | $4.740 - $4.751 billion |
| Adjusted Diluted EPS | $3.23 - $3.24 |
| Gross Margin | Approximately 35.4% |
Balance Sheet Highlights
As of September 30, 2024, Genpact reported total assets of $5.33 billion, with total liabilities amounting to $2.93 billion. The company's equity stood at approximately $2.39 billion.
| Balance Sheet Item | As of December 31, 2023 | As of September 30, 2024 |
|---|---|---|
| Total Assets | $4.81 billion | $5.33 billion |
| Total Liabilities | $2.56 billion | $2.93 billion |
| Total Equity | $2.25 billion | $2.39 billion |
Genpact continues to leverage its expertise in digital transformation, data analytics, and AI to drive business growth and enhance client value in a rapidly evolving market landscape.
A Who Owns Genpact Limited (G)
Major Shareholders
As of 2024, the ownership structure of Genpact Limited (NYSE: G) is divided among various institutional and individual shareholders. The largest shareholders include:
| Shareholder Type | Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.4% | 15,112,456 |
| Institutional Investor | BlackRock, Inc. | 7.2% | 12,953,827 |
| Institutional Investor | State Street Corporation | 5.3% | 9,434,944 |
| Individual Investor | Bhanu Choudhrie | 4.1% | 7,300,000 |
| Institutional Investor | Fidelity Investments | 3.9% | 6,992,104 |
| Other | Insider Holdings | 2.5% | 4,500,000 |
Share Distribution
The total number of outstanding shares for Genpact Limited is approximately 179 million as of September 30, 2024. The following table outlines the distribution of shares among different categories of shareholders:
| Shareholder Category | Percentage of Total Shares | Number of Shares |
|---|---|---|
| Institutional Investors | 64.2% | 115,000,000 |
| Retail Investors | 20.3% | 36,000,000 |
| Insider Ownership | 2.5% | 4,500,000 |
| Other (e.g., mutual funds) | 13.0% | 23,000,000 |
Recent Changes in Ownership
In recent quarters, there have been notable changes in ownership stakes:
- Vanguard increased its holding by 1.2% during Q3 2024.
- BlackRock reduced its stake by 0.5% as of September 2024.
- Fidelity Investments has maintained its stake without change over the past year.
Market Capitalization
The market capitalization of Genpact Limited is approximately $6.5 billion as of November 2024, reflecting a strong position within the professional services sector.
Stock Performance
As of November 2024, Genpact's stock is trading at approximately $38.72 per share, with a year-to-date increase of 16% from the beginning of 2024.
Dividend Information
Genpact has a consistent dividend policy, with a recent dividend payout of $0.43 per share, representing a yield of approximately 1.1% based on the current stock price.
Genpact Limited (G) Mission Statement
Overview of Mission Statement
Genpact Limited's mission is to deliver outcomes that shape the future, leveraging technology and data to drive transformation for leading enterprises globally. The company emphasizes a relentless pursuit of a world that works better for people, highlighting its commitment to innovation and operational excellence.
Financial Performance
As of the third quarter of 2024, Genpact reported significant financial metrics that underscore its operational success:
| Metric | Q3 2023 | Q3 2024 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $1.14 billion | $1.21 billion | +7% |
| Data-Tech-AI Revenue | $523 million | $569 million | +9% |
| Digital Operations Revenue | $636 million | $642 million | +5% |
| Gross Profit | $402 million | $431 million | +7% |
| Net Income | $117 million | $133 million | +13% |
| Income from Operations | $166 million | $182 million | +10% |
| Diluted EPS | $0.64 | $0.74 | +16% |
Operational Highlights
In the third quarter of 2024, Genpact's operational performance was driven by its focus on innovation and technology integration:
- Cash flow from operations increased to $228 million, up from $162 million in Q3 2023.
- Approximately 1.9 million shares were repurchased for $75 million at an average price of $38.72 per share.
- The adjusted diluted earnings per share rose to $0.85, representing a 12% increase year-over-year.
Market Position and Strategic Initiatives
Genpact continues to position itself as a leader in professional services driven by technology:
- In 2024, the company anticipates total revenue between $4.740 billion and $4.751 billion, reflecting a growth of approximately 6% year-over-year.
- Strategic investments in AI and digital operations are expected to drive continued growth, with a projected adjusted income from operations margin of approximately 17.1% for the full year.
Outlook for 2024
Looking ahead, Genpact's outlook remains positive, with key projections for the fourth quarter of 2024:
| Metric | Q4 2024 Guidance |
|---|---|
| Total Revenue Range | $1.222 billion - $1.233 billion |
| Digital Operations Revenue Growth | ~5.4% YoY |
| Data-Tech-AI Revenue Growth | ~9.0% YoY |
| Gross Margin | ~35.6% |
Genpact's commitment to innovation, operational excellence, and strategic growth initiatives positions it favorably in the competitive landscape of global professional services.
How Genpact Limited (G) Works
Business Model
Genpact Limited operates as a global professional services firm that focuses on digital transformation and business process management. The company leverages advanced technologies, including artificial intelligence (AI), data analytics, and cloud computing, to deliver innovative solutions to its clients.
As of 2024, Genpact serves over 700 clients, including many Fortune Global 500 companies. The firm is structured around two primary service lines:
- Data-Tech-AI: This segment focuses on providing data analytics, technology services, and AI-driven solutions. In the third quarter of 2024, this segment generated $569 million in revenue, accounting for 47% of total revenue.
- Digital Operations: This segment encompasses traditional business process services, including finance and accounting, customer service, and supply chain management. It generated $642 million in revenue, representing 53% of total revenue in the same quarter.
Financial Performance
For the third quarter of 2024, Genpact reported the following key financial metrics:
| Metric | Q3 2023 | Q3 2024 |
|---|---|---|
| Total Revenue | $1.135 billion | $1.21 billion |
| Revenue Growth | N/A | 7% YoY |
| Gross Profit | $402.8 million | $431.4 million |
| Net Income | $117.6 million | $132.8 million |
| Diluted EPS | $0.64 | $0.74 |
| Cash Flow from Operations | $162 million | $228 million |
Market Position
Genpact's market position is strengthened by its global presence, with over 125,000 employees across more than 30 countries. The company is recognized for its expertise in digital transformation and operational excellence, which has resulted in a robust client portfolio and increasing revenue growth.
In 2024, Genpact has raised its revenue growth outlook to approximately 6% from the previous year's 2%. This is attributed to its focus on innovative solutions and enhanced client relationships, particularly in the areas of AI and analytics.
Operational Efficiency
Operational efficiency at Genpact is reflected in its margins. The gross profit margin for Q3 2024 stood at 35.6%. The income from operations margin was reported at 15.0%, while the adjusted income from operations margin was 17.6%.
The company has also been active in share repurchases, having repurchased approximately 1.9 million shares for about $75 million during the third quarter of 2024.
Outlook for 2024
Genpact's outlook for the fourth quarter of 2024 includes:
- Total revenue expected to be between $1.222 billion and $1.233 billion, with growth of approximately 6.6% to 7.6% year-over-year.
- Digital Operations revenue growth of approximately 5.4% year-over-year and Data-Tech-AI revenue growth of approximately 9.0% year-over-year.
- Gross margin projected to be approximately 35.6%.
Consolidated Balance Sheet Highlights
As of September 30, 2024, Genpact's consolidated balance sheet includes:
| Assets | Amount (in thousands) |
|---|---|
| Total Assets | $5,325,660 |
| Current Assets | $2,400,809 |
| Cash and Cash Equivalents | $1,022,647 |
| Liabilities and Equity | Amount (in thousands) |
|---|---|
| Total Liabilities | $2,930,967 |
| Total Equity | $2,394,693 |
Genpact's strong financial position, combined with its focus on innovation and operational efficiency, positions it well for continued growth in the professional services sector throughout 2024 and beyond.
How Genpact Limited (G) Makes Money
Revenue Streams
Genpact Limited generates revenue primarily through two major segments: Digital Operations and Data-Tech-AI.
- Digital Operations: Revenue for this segment was $642 million, representing 53% of total revenue in Q3 2024.
- Data-Tech-AI: This segment achieved revenue of $569 million, accounting for 47% of total revenue in Q3 2024.
| Segment | Q3 2024 Revenue | Year-over-Year Growth | Percentage of Total Revenue |
|---|---|---|---|
| Digital Operations | $642 million | 5% | 53% |
| Data-Tech-AI | $569 million | 9% | 47% |
Financial Performance
In the third quarter of 2024, Genpact reported total revenue of $1.21 billion, marking a 7% increase year-over-year. The company's gross profit for the same period was $431 million, with a corresponding margin of 35.6%.
Net Income and Earnings Per Share
Net income for Q3 2024 was $133 million, reflecting a 13% year-over-year growth. The diluted earnings per share (EPS) for the quarter increased to $0.74, a rise of 16% compared to the previous year.
| Financial Metric | Q3 2023 | Q3 2024 | Year-Over-Year Change |
|---|---|---|---|
| Total Revenue | $1.14 billion | $1.21 billion | 7% |
| Gross Profit | $402 million | $431 million | 7% |
| Net Income | $117 million | $133 million | 13% |
| Diluted EPS | $0.64 | $0.74 | 16% |
Cash Flow and Share Repurchase
Cash flow from operations in Q3 2024 was reported at $228 million, an increase from $162 million in Q3 2023. During the quarter, Genpact repurchased approximately 1.9 million shares for a total consideration of about $75 million.
Outlook for 2024
For the full year 2024, Genpact expects total revenue in the range of $4.740 billion to $4.751 billion, indicating a year-over-year growth of approximately 5.9% to 6.1%. The adjusted diluted EPS is projected to be between $3.23 and $3.24.
| Outlook Metric | 2024 Estimate | Year-Over-Year Growth |
|---|---|---|
| Total Revenue | $4.740 - $4.751 billion | 5.9% - 6.1% |
| Adjusted Diluted EPS | $3.23 - $3.24 | Increase from previous guidance |
Balance Sheet Highlights
As of September 30, 2024, Genpact reported total assets of $5.33 billion and total liabilities of $2.93 billion. The company's shareholders' equity stood at $2.39 billion.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $5.33 billion |
| Total Liabilities | $2.93 billion |
| Shareholders' Equity | $2.39 billion |
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Updated on 16 Nov 2024
Resources:
- Genpact Limited (G) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Genpact Limited (G)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Genpact Limited (G)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.