The growth was even more spectacular in the comparison to the first quarter. The quarter-on-quarter growth in net profit was 296 per cent.
The revenues of the company during July-September 2005 was up 4.3 per cent year-on-year to Rs 155.77 per cent while on quarter-on-quarter basis it was up 4.6 per cent.
"Quarter-on-quarter growth model has started showing results and margins have started expanding. The gross operating margins have gone up to 32 per cent from 20 per cent," Phaneesh Murthy, CEO, iGate told PTI. The EBITA has also grown to 10 per cent from 4.0 per cent.
"We are happy to reach quarter-on-quarter growth. We want to take the quarter-on-quarter growth to a new level. The company will take some time to reach doubledigit growth in revenues, " Murthy said.
He said the company's integrated technology and operations model has got a positive response from customers. "iTOPS model has helped us acquire number of customers," Murthy added.
The company is, however, expecting a weak third quarter. Murthy said that the third quarter is traditionally weak because of many festivals and holidays.
The company added eight new clients during the second quarter of which six were Fortune 1000 clients. This compares poorly against the first quarter when the company added 11 new clients of which nine were Fortune 1000 companies.
Murthy, however, said that the company has started seeing traction in many of the clients it won in the last 12 months. Revenue from top five clients grew six per cent quarter-on-quarter while the reveneus from top 10 clients was up 7.7 per cent. The company added 73 people during the second quarter to take the total to 4,356.
Offshore leverage of the company has gone up by one per cent. Now 68 per cent of the company's employees are at offshore locations and 32 are close to the client locations.
"We have reached a ratio of offshore and onshore that we are comfortable with," Murthy said. iGate is investing Rs 25 crore (Rs 250 million) to expand capacity. "We will spend Rs 25 crore on the expansion of the third phase of our Bangalore centre which will have 1,000 seats," he said.
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