iGate: De-listing to bring simplicity in structure & governance; SG&A brought down to 16.9% of revenues

miGate announced its results today. The Q2 (QoQ) net profit stood at Rs 22.9 crore vs Rs 14.3 crore. CNBC-TV18 poll saw net profit at Rs 16.8 crore. The Q2 revenue (QoQ) of iGate stood at Rs 200.8 crore vs Rs 199.4 crore. CNBC-TV18 poll saw revenue at Rs 204.3 crore. iGate is to de-list its India entity via buyback.

i-Gate management says the overall plan of delisting Indian entity is to restructure capital, simplify structure and governance. Company is going to buy-back 18.9% of Indian entity and will continue to list in North America. Delisting is part of capital restructuring exercise. iGate Corp is reasonably serious to buy-back shares.

Shareholders’ meeting for demerger is scheduled on Nov 16.

Higher utilisation rates, a 100 bps improvement contributed to EBITDA. SG&A down to 16.9% of revenue and hedging strategy. Management further said that 2008 IT budget is going to be flat compared as compared to 2007. From offshoring perspective, the demand continues to be strong.

iGate Global Solutions Ltd. today detailed its results for the quarter ended September as follows:

Consolidated Qtr ended Sep 30, 07 (Rs Mn) Net Income from Sales/Services 2,007.60 Consumption of raw materials 1,351.20 Gross Profit 656.4 Selling & Distribution Exps. 339.6 Depreciation 100.4 Interest 6.5 Operating profit 209.9 Other Income 27.5 Tax expenses 0 Profit after tax 237.4 Extraordinary items 8.2 Net profit 229.2 Equity share capital 126.6 EPS (Rupees) -Basic 7.25 -Diluted 6.87