G - Earnings call transcript Q3 2019

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Operator

Good day, ladies and gentlemen. Welcome to the Third Quarter 2019 Genpact Limited Earnings Conference Call. My name is Demetrius and I will be your conference moderator for today. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session towards the end of this conference call.

to about call hour. the expect conclude an at We

available recorded call purposes. will As Relations made this website. being of be the for Genpact’s section and call a reminder, the is replay Investor of The archived on replay

turn like Genpact. Sachs, at call over proceed, sir. I Head to to Investor of would the now Relations Please Roger

Roger Sachs

September hope our welcome quarter earnings third had you, and results the to earnings Thank for Genpact’s review Demetrius, We genpact.com. IR good posted release, to afternoon, of XX, quarter chance a which ended to our website, you to everybody, discuss XXXX. section and our call the was

London and Joining from is the Officer; Tyagarajan, Chief Ed our call Chief President our Executive and Fitzpatrick, Tiger Officer. Financial

our be year. just high-level provide about noted, will then the financial discuss an questions. hour. Demetrius we’ll results Tiger Our performance as outlook and you provide and quarter to second last then And greater agenda overview call for take comments then on our third strategy. Tiger come details as a we quarter -- for results our in closing the an update on your update today will follows: will some back for of Ed will expect for and

Some in such those forward-looking are our uncertainties that of could from actual Such call statements the cause forth risks, materially today’s matters and statements. These we in factors other press will to risks involve forward-looking. set of are discuss in uncertainties a number forward-looking results release. and differ

information our the these way non-GAAP we non-GAAP to operating understanding of views believe the financial We our performance to during In the call certain today, refer of enhance addition, measures business. provide additional management measures. will

reconciliation the section You of earnings posted GAAP our release measures to today’s of website. IR these can to in a find

Tiger. And the over let with me turn to call that,

Tiger Tyagarajan

pleased business. for with afternoon, continue our broad today third as results earnings our us primary services robust very client we Good across transformation for that thank third global you to you, quarter Demand Thank our call. our everyone, remains XXXX feeds our operations I’m quarter of Roger. and see growth. the for driver intelligent joining annuity momentum

led reputation quarter. cash embraced adjusted and the operating operating key experienced We’ve in operations. EPS leader performance become new capability create already design consulting clients the large a digital a many thinking our the in acquisition factor level during relationships. enhances economy team and Rightpoint our multiyear flows in space. healthy believe to using and This strong We this top pending as dramatically a strengthens Strong value across has to our experience of further as their

a increased revenue quarter revenue Specifically during increased XX%, increased constant XX%. third revenue the XX%, basis global on total global BPO client currency client

and XX% of adjusted income XX% delivered We margin year-over-year. of operating up $X.XX, also adjusted EPS

chosen and Our as service data technologies be well and as continue transformed lines digital and derived underpenetrated analytics. verticals to by they’re insights from being

consumer our signed We Let new client well in our me quarter retail, growth transformation last the driven execution. and and highlights Global of in show late large capital saw as year-to-date hi-tech year deals continuous the success banking markets, by was by good strong third a strategy as continued GE, that verticals. growth share driven few services and work. performance

analytics solutions from outcomes and XXXX, in digital XX% not FTE cost XX% models that Transformation commercial to wins, of productivity. of up technologies was our increasingly advanced the back beyond of the deliver years pricing, up couple services range of services XX% are driving Global more enabled digitally consists based and now new intelligent based up XX% range revenue our mid from on a as leveraged lower deal systematically in XX% revenue client total embedded year-over-year. operations. transformation over annuity was Approximately approximately

strong Our past. consistent from healthy inflows large the in pipeline a recent driven year-to-date deals remains by as contribution with

our of pipeline the acquisitions risk for services services financial services where a both chain impetus solutions more these supply in crimes our Barkawi banking, digital-led five-fold and expanded capabilities than for in and create in a riskCanvas transformation. increase The leading to

strong our finally, situations. our approximately rates at differentiation XX% deals sole-source Our remain win competitive of highlight in bookings. And

Building growing participant Cardinal iconic believe a with new solutions key in deliver brands leader process as the record our industries large won proven we finance consulting models. of a operating focus, that in We recently healthcare ability a transformation providing sciences of on and industry leverage a recent to for at roster factor their broader deal will track digital solutions led domain thought where major the in and a end-to-end reputation Health, we relationship wins technologies. help innovative our strategic the of life our transform with

allows new data technologies, analytics will Health new as insightful analytics will Central real-time to better accurate center critical expertise to that at more Leveraging in in analytics, the decision-making operations in serve we work with for clients industry-leading integral and reimagine part hub renovation FP&A drive the Ohio business an innovation. drive more hub where network FP&A Cardinal our and analytics our enable growing hubs, of data function and models. serve underpenetrated anchor of clients. digital This Genpact's deep client as finance our transformation the will and highly data excellence, industry-leading in to

differentiating We experience as their rapidly experience clients. services front, through elevated facing create are front-end our a market and across forces need Market for front factor customer with the moving of and middle, center in and lever operations. to company primarily strategic from design have change back-office a key our run value see seeing we a many that

moving fusion siloed beyond serve. true experience work that driving markets organizations We clients led advantage is the the seamless way will value believe they a created by experience competitive and transformation journeys CIO, innovation enterprises. the reimagine of digital and being innovation With end-to-end are process change gain help they in the

and critical to AI user one the identified , Genpact set experience technologies platforms to solid we ground experience We Cora. back, a provide thinking to and and customer that automation curated the days design capabilities. of few acquired TandemSeven stake our A based as was in of

Over two team has Genpact's have and of critical be drive differentiator source end-to-end creation the a many years, of won. our TandemSeven a last large-scale ability key in transformation and large clients we value proven win to for in the deals the to

leading validated have we market has during beyond with first experience months deals led around that outcomes are without our savings. driving Together have last to our transformation. been our The would solutions industry strategy experience won XX significant we clients, as capabilities and cost never building the possible

Genpact digital acquisition experienced space leading clients. our ability deepen together true Just our connect capabilities huge consultancy journeys. experience orchestrate transformative make in bring unique digital acquisition, in ability a in an for our believe we a and to outcomes the as few this help to and of backs, in we announced we to front this position process to accelerate We a pending our and clients economy. unprecedented Rightpoint, end-to-end growing experience will difference drive clients middle is transformation believe With the to to offices way win transformation back drive a to their help our and digital

deployment routes to you players. on by that a development set to want and leveraging targeted model our update accelerate new new commercial also market, provides solution program of expand our I partnership ecosystem

and inefficiencies to with help technology for to are able expertise, digital detailed their to provide in customer strategic roadmaps improvements mining with leading-edge collaborating Celonis First, combine process digital Coupled transformation. processes. our we identify we operations to are accelerate process

solution using and built finance-as-a-service Workday to time employees with a manage launched solution various called automates and processes, Deloitte and for GenOne, cloud. operations finance in noble higher-value partnering The Next, freeing flexible to OneSource engage clients transactional finance Virtual, work. the we scale up in

we achieve medium-term performance, we global target our double-digit are our during and our revenue that confident recent Given we strong client will teen, to pipeline our Day. year-to-date Investor shared growth inflows, bookings, low

over call With that, let me to Ed. turn the

Ed Fitzpatrick

Today you, review our and will Thank provide and financial good full-year everyone. results outlook on XXXX. third quarter an afternoon update for our Tiger, I

increase of generated During reported both total XX% and revenue on constant an year-over-year $XXX we million, basis. an of quarter, currency the as

representing of currency XX% total constant XX% increased basis. outsourcing Client increased which XX% process revenue $XXX a Global XX% and million, revenues XX%. of revenue, or business year-over-year. our grew revenues XX% were IT Total Overall revenues, on services year-over-year represent total

BPO both largely the Clients, growth more and in in services transformation as was constant than by global currency XX% of attributed the an grew Global driven basis, reported on that and over total XX% a client Within up revenue deals XX% impact revenue. and of quarter large

X% Global services was revenue client year-over-year. IT up

relationships our range expand a targeted clients industry with global We to across expect verticals. of continue our

XXXX more including million, of the For grew revenues $XXX revenue annual relationships large transformation client as G.E. million $XX late from to XX-month deals well driven to client up the year-over-year, we ending with year $XX XX were increasing new period by with September global signed the than annual XX work. services from XX, XX, of relationships number in XX% revenues last XX. as million

from period $X year expanded basis export Adjusted operating operating gross income margin $XXX that the XX income quarter included driven compared the our points prior higher was grew for margin and income million. by Adjusted adjusted million margin to SG&A and XX.X% XX% to operations sequentially in subsidy of XX% operating leverage. by

lower to early improvement large year. margin that last was gross services compensation. new of stages utilization their the in positive for in the deals higher Gross the the XX.X% from the well transformation impact compared as during stock-based by from offset XX.X% quarter period as are The same margins ramp was

million to year. $XXX expenses quarter million compared SG&A same $XXX the Total in were last of

operating foreign for was declined offset lower income against by $X.XX $X.XX driven basis partially The $X.XX and As a net expenses interest of EPS year. a revenue, related compared primarily expense. tax Adjusted percentage effective points, $X.XX $X.XX, to quarter was sheet balance increase year-over-year XX higher rate driven higher the SG&A lower by $X.XX, to by leverage. measurement last of exchange the operating of by

Our effective reform to was elevated impact tax due XX.X% compared XX.X% that the in to tax last year was XXXX. U.S from rate

The during expected third the quarter. certain quarter XXXX was rate of recorded to bit benefits a than we lower discrete due tax

our me turn let sheet. and balance Now to cash flows

compared generated subsidy cash The operations from During last cash operating prior by incremental $XXX from the and quarter, income expected higher periods. were in India we million flows of year. the primarily $XXXX export collection to driven the million

in days XX the second were at with DSOs quarter. line

XX to day low expect mid the fourth range. continue our We to the to to in improve quarter DSOs

and cash to cash quarter third of were of million the compared Our XXXX. million at the $XXX $XXX end equivalents

$XXX last rolling undrawn quarters strategy. net our liquidity for of to to growth and to cash debt capacity With sufficient pursue was balances, opportunities debt allocation ratio X.XX. Our capital four have EBITDA million continue and existing the execute on we

to million quarter, included shareholders. dividend of a form the returned in at This the million share. $XX During of $XX we regular per capital approximately $X.XXX

$XX.XX per of XXX,XXX during We price approximately shares, the also weighted repurchased quarter. share million at $XX a totaling average

our initiated available a average program. approximately we share authorized approximately XXXX, by $XX program Since in at per share of our for period, currently Over of capacity have net repurchase total repurchased XX reduced shares million the under outstanding XX%. have $XXX million we an share buyback We our million. this $XXX of shares price

percentage third during to Capital expenditures X.X% as a year. same last of was quarter the compared the X.X% period revenue in

of expect the continue of to expenditures be range X.X% X% to full-year, revenues. we to capital For in the

to update Let any we mid Rightpoint, XXXX our November. This include expect outlook year you our does close planned me from acquisition impact on outlook. of not full which in

a revenue to on growth constant XX% of $X.X representing to billion expect $X.XX XX% year-over-year to between billion, total and basis. currency or to continue XX% We XX% be

expected XX.X% basis.. full-year on the growth constant Clients, currency a Global remains For XX% of revenue range to in

expect to the improvement to continue full-year XX% margin approximately be for quarter. adjusted continued margins the during We operating fourth with

per range favorable up full-year $X.XX, to sheet, balance our from of gains. outlook $X adjusted earnings increasing $X.XX prior $X.XX are of from FX, the to share the be to remeasurement location in We due our impact to

closing to his With me comments. back the that, over turn let call Tiger for

Tiger Tyagarajan

you, Ed. Thank

the results focused are the Our a of third in continued playing our long-term quarter reflection marketplace. journey out strategic for

to expect end stage for XXXX beyond. and strong, the We year setting the

million $XXX going in many verticals all and relationships them and revenue eclipse forward. we of deepen grow our expect to continuing our of strategic annual are to more level the We

of accelerated and growth to Our a targeted have true a fundamental path partner for capability our driver become transformation clients. our acquisitions been our

the like through With of the us, business our cycles. and model macro we uncertainty resiliency we see all around economic durability

strategic business running of the transforming up our choice. revenue of operations from a Our of mission-critical annuity-like designing, set derived industry primarily is streams on in verticals and clients made

capital, change, help fraud, so The can our more overall profitability their the back many Whether We take improve to tremendous growing drive partner, we efficiency clients pride ups with to in in ability downs are the help and the the our to different working revenues, inventory increase they there gains help associated share compete help to our a navigate more an experience become trusted and of economy. economic creating through broader clients to market in can front we and advisor changes challenges cycle. providing any optimizing through drive better markets. we reducing or levels, operational clients better

At our remain way best-in-class time, be we and with are line and metrics. the constantly This nimble agile, sure in proactively ensures inside we the same our serve to the also to own innovation. in we operations looking relevant best clients possible through are

have Stacey companies has as Stacey track transforming will an impressive a of Directors. Cartwright Genpact. member of the numerous and you'd our asset of adding seen our and announcement Lastly, be leading to record great newest Board

Roger. over back call the turn me let that, to With

Roger Sachs

provide call for questions. instruction. Demetrius, please Thank now our you like your you, Tiger. can -up open the to We’d

Operator

And Baird. Koning Instructions] first from our comes question with [Operator Dave

You proceed. may

David Koning

Great job again. guys. Hey, Yes.

Tiger Tyagarajan

Thanks, you. Dave. Thank

David Koning

plus, I guess, global year issue a next I kind kind low that and a XXXX, wondering look that of so you create type is pipeline good, is imagine, was double on acquisition, then I was that comp top of is in forward growth we of would of or business the in does teens, is sustain obviously, little client about bit Yes. talked growing as -- that, of this to to and low year? the enough your

Tiger Tyagarajan

the Investor set five if years years So, we services strategic back global Actually in over it's since growth, not geographies. during five our -- at that you you been the vertical different our and we last Day. ever finished as Dave, the look down narrow exercise showed and client of

XXXX really out, all of feel Obviously, are that any that. see we we inflows So uncertain strategic pipeline creates times for know, that our I barring wouldn't proposition necessarily for we say challenge good that plays as XXXX. all about in will we of are, global growth economic clients value but slightly our how clients, of

David Koning

stabilize, we will where soon And improve probably benefit actually Thanks. this ramp of margin gross guess some that's can pretty the the the the on stabilize we way leverage now kind deals. and to that all a to of then point costs long follow-up, is get of to that the you some even gross of the on in just those great Are future which now, Great. big to ramps gone just even stuff my I margin. a and has see despite year

Tiger Tyagarajan

Yes, I will just will then and kick it Ed off jump in.

I think you are absolutely right, Dave.

about the hit gross good a big margin. on deal, starts feel that. on we the the Clearly, much pretty actually nail when gross You typically head. We margins. it stability big in are takes deal the there win Obviously and very lower at puts

this deals gross is a gross Now, is margin big Ed? going big show -- come typical work environment. believe think will the about old future, way new deals stable we this into a the in, portfolio way one should they pressure have is, on but that to the margins, good

Ed Fitzpatrick

it. you I mean, covered think, I Tiger,

have improvement Services, -- first consulting in in so Transformation the are particular large are this there. good place in that’s that the the year had given mathematics. really margins, challenge think a we we we The last -- the deals I ramping just year,

So that stability. that’s the

are extent we we that to large that have them. kind deals, So have Tiger I and of happy the more

will deals and existing we margins and the we deal. will deal accounts, it have new lower So with we on as initially get with the new we improvement deal in will

into as feel path So, where for are we yes, good in we get about XXXX. we the

David Koning

great. Sounds guys. Thanks,

Tiger Tyagarajan

Dave. Thanks,

Operator

Fitzgerald. next question Cantor Joseph Foresi from comes And our with

may You proceed.

Joseph Foresi

about it, asking should -- we to a bit early we've it's past, GE wanted and a slightly sense just I just wanted about for or about like or model out always We've to some to Hi. out little for plus you're goalposts any of Client willing get I in is X% how moderating there to normal, sounds know talked be the see double-digit I going around of It sort from but XXXX? more up. modeling a I minus to growth. think to a enough pipeline goalposts to Global think X%. talked maybe the that if But the ready perspective. and put good support margins

Ed Fitzpatrick

the consistency model, just growth. talked level global about Tiger, Day, client growth changed kind comfort talked Joe. the haven’t about double-digit range. of of our We At Investor that in teen we and low being to

while of going So we that the expect that haven’t we come to hadn’t drive haven't off margins, changed said deliberately the growth that time improve Asian medium to forward. profitable term investing we and -- same we at expectation ensure

but guide So all your what in you -- won't off you we not XXXX, said model. from at no I previously. to real change the said what was

Tiger Tyagarajan

correct. That’s

Joseph Foresi

it. Got

And given your way have need on deals? through visibility your is demand the you decent amount And strong pipeline then to a Okay. large of for there? year, how the that this replenished? made be performance XXXX, for Does

Tiger Tyagarajan

deals Joe, been has Replenishment, been of going well. -- large has

Joseph Foresi

Okay.

Tiger Tyagarajan

And that's by the which being are strong. driven inflows

the pipeline we new at level. while inflows keep helps burn the that obviously through the deals, So through pipeline

So I last we visibility in would to say visibility years. the have the is had few similar

relationship. importantly, big clear the you our four go have is the real that last because to what's a visibility to three you convince into marketplace choices. the specific when is differentiation in More a clients or then and that difference And makes win years the

Joseph Foresi

it. for quarter? growth last was And Got What one the me. the organic in

Ed Fitzpatrick

talk largely quarter, impact in don't the line, from but was about M&A. of Joe. point year, It for We about a

Joseph Foresi

it. Got you. Perfect. Thank

Ed Fitzpatrick

Joe. Thanks,

Operator

comes Huang question JPMorgan. Tien-Tsin from from our And next

You may proceed.

Tien-Tsin Huang

acquisition. the fit is obviously was that good sometimes. be I consulting business afternoon. curious, Good you. a know I Thank can Genpact? on just for Why Tiger, Rightpoint tricky

that appeals asset to tell So what can that you? you about us

Tiger Tyagarajan

Yes, Tien-Tsin.

over of acquisition, customer both clients that themselves. the importance years and from experience perspective realization in which specifically choice and in as well made and skyrocketed. TandemSeven, the the we both my deliberate our BXB very we You has having around our verticals for was in explaining strategic run operations working from know a each environment, perspective of of two the was The years have in user the team as operations that acquired our almost with our TandemSeven everyone there searched clients three BXC for environment just a last after been are remarks, last prepared a that and finally that I

deals. have We our in seen that

has the got the have of one We TandemSeven won. deals we have reasons have way of many so seen that included in our been that in big

that overlap believe in our choice. small have demand not own. to of of And reasonable it's is and Rightpoint At the engine all can in a that we this time a the into it scale and a business. the coming So, business, We verticals a good they our of great our choice acquisition of marketplace the vertical deals the a bring the same a client clients have believe strong. service very that's at It's topic. continue when with we a time, overlap around of their has in them traction number

the that’s we really coming about So good in. feel team

Tien-Tsin Huang

quick then Okay, on a year-to-date like margins margins. at It looks follow-up XX.X%. good. the just And running are

for, I year. think guidance your is XX% for the what,

Any fourth to quarter? up So the the fourth are make this up correctly. sure quarter, we want they call-outs in lining bump just for I

Ed Fitzpatrick

You’re right, Tien-Tsin.

the the we kind but with in XX% where are year-to-date year, we We on This get range lines a of through were QX. of are kind XX.X%, XX.X% so QX. year. hurdle last into were Last to track, year we at about along

better to day, we still likelihood the all as in little export throughout the had So reaffirmed at Earlier of leverage, SG&A year profit, subsidy. gross leverage. also expect do looking into leverage, we we to typically typically of the that year. But end line top the of it will we we’ve expectation this continue and that the of lot year from get are through bit of a some that drop get come as a drive also a expecting SU the kind the bit past

will that likely is come that not expectation through. our Now

likelihood you and So step we’ve been kind lesser on and have the -- became of the function, that will, if as the as year place in to that do export kind throughout a action plans lesser been weighing throughout year. subsidy what of putting

always So discretionary tightly. spend as been you has know looked -- at pretty

as more QX action as at looking are that, are considering we look looking looking at in at we that even other we XXXX into it closely actions. typically we And We do, and line might year. that service may down, be customer dialing need down dial throughout look we to including do up looking relationships or the with at to dial investments to dialing up

the we done also well. of monetize that may do. to at So are as undervalued be will looking during before identify our we portfolio it's to as some do, asset any able things typically to have assets as looking just we the quarter we And

up, say 'XX, it we So quarter that looking can to What do do the we discretionary levers, our else about dial deliver. make whatever margins feel fourth dial those spend, to at but is make and ability sure all I we happen. still drive to for the down XX% to good we during work would have

operating For in the drive deliberately again, our the business growth. reinvesting change long-term or to improve long-term, to derived same no time profitable in at the the while margins that trajectory

Tien-Tsin Huang

Okay. you. Makes sense. Thank

Tiger Tyagarajan

Tien-Tsin. Thanks,

Tien-Tsin Huang

Thanks.

Operator

And our & Tandon question Company. next from with Mayank Needham comes

You proceed. may

Mayank Tandon

inflect recent about Could specifically the see you contribution services some Thank and Investor crimes. financial management just how newer playing you. the the F&A you going service some the at areas, talk offsetting that to that line, to and is top supply Day you example? chain some of called Tiger, actually such about growth, up as maturity And as claims or core think of more you areas, out? the that's of an processing do the in

Tiger Tyagarajan

and both services and growth called in financial will in time growth goods, banking and life the services and example? And will it's contribution the chain the and in starting them: Since as sciences has manufacturing, as up, the in for ramp Supply of two market that the explained total start we bookings in space. we market by inflows, but it meaningful, some consumer Investor over absolute offsetting off driven we then Day, capital -- of at it's No. so a these to accounting is risk think at then off space; because revenue, Is the small. year, its been I it massive. finance these crimes addressable order. Clearly, lower services out small pipeline, particularly retail, newer base, an

the We is one with of see and that. accounting Health continue Cardinal to just relationship we example and underpenetrated why Finance as believe

Mayank Tandon

Makes other sense. what out might your just the limit factors I question And the then high-level talent sort if just over factor could another or gating on growth. to want you growth the call time? that, around that main I get tack Would might basically of factor, time? sourcing thoughts on as the limit growth over potential to

Tiger Tyagarajan

would I important term. factor. I our very business. manner I The I that on I level I delivering global would why important most I that experiencing we client expect would we low as medium to a of factor is -- four we years rate or call only we're out which say at have say, is our a that growth global that double-digit there consistent the continue, factor. the say talent is about gating the been the five would for are clients, mean, talking very kind gating in mean, in teens to clients necessarily in now obviously said the growth is excellence gating growth for as is would

story win with been out clients. clients deliver well that's as our about because doing reputation clients, as incredibly excellence to the our for And Here for build ever for GE careful up that our other the XXXX. of in more the since came we we sets basis

it's how believers at and are that. in we big that's So changed all,

would I just So than that's probably sheer a gating say talent. bigger factor

Mayank Tandon

job on quarter. Thanks. Got Great it. the

Tiger Tyagarajan

Mayank. Thanks,

Operator

Nolan Maggie question William comes next our And with from Blair.

You proceed. may

Maggie Nolan

Hi.

Tiger Tyagarajan

Hi, Maggie.

Maggie Nolan

any to in the follow-up margin wanted I that head? rep to give profile, a or per with growth financial Can Genpact metrics comparison the maybe or you rate of So Rightpoint. on terms

Ed Fitzpatrick

Yes.

any won't in the So the the general, terms ours. profile yet closed. hasn’t largely transaction with the margin profile because But consistent give of yet

they’re revenue, and meaningful just addition So has levels of go and volume reasonable with good isnt so as that's it a also Tiger pretty thing of expertise, we -- not level with said, in margin. through the good it's and this of a capability kind

would in forward happy to in XXXX, transaction accretive So we will and for XXXX. accretive It minimal go as with it XXXX. expect be we somewhat the be but profile an

Maggie Nolan

that Understood. And more of, information bundled software? Is you like proprietary be this would out this in spoke finance-as-a-service on get then it can we And and tool little a engagements, is Tiger, you separately? automation that co-developed? priced or that

Tiger Tyagarajan

Yes, it is finance-as-a-service.

partnership operations service model model. So would the in is it's partnership cloud the because when has of a then bundling is be then which commercial on go important, as together on finance, along finance obviously and And Workday incredibly obviously gets modules a Workday's when commercial HR with really solution leveraging it Workday Deloitte of with finance, other. porting that, the of with platform And they our the where becomes onto -- typically operations. including that on-source, the it for implemented the they kind around interact HR each

get finance when implemented of all a of at Workday different a that So set plans. it is time to and makes unique beginning in

Maggie Nolan

you. Okay. helpful. Thank That's

Ed Fitzpatrick

Thanks, Maggie.

Operator

Cowen Company. and comes Bergin with And from our next Bryan question

proceed. may You

Bryan Bergin

Hi. within the leverage SG&A really XXXX here Is heard forward. leverage how much margin Thanks. Obviously, margin. strong the stable here for operating more going room gross do a model expect we thought stable Wanted SG&A environment start think I you and to forward offset going beyond? I gross on And should to leverage? you margin. And have that

Ed Fitzpatrick

think I that. has in changed that nothing Yes,

have or functions the coming we at through a you as a back. top less easy we are is growth that than GE we top support bit with and given when grow coming grow, it can where today. Bryan, think, It's the the leverage revenue to has line growth I line been level growth particularly robust,

Bryan Bergin

Okay.

Tiger Tyagarajan

the work, do, to the the that more be required undertaken because the the but is does what across three the company margins. therefore U.S. and good And complexity the to last A has a middle we’ve these in and stable of onshore that’s value gross work done. do, front, and changed office is lot all feel also what -- that tad. and incorporated, things our four just gross Bryan, more not over in of one we the just the operations being in over that of already a change to in the or the said, now Ed in transformation globe three or we business about margin back of of that’s add that the onshore change profile work the digital is lot four last And years the years we interconnectedness between

Bryan Bergin

moderation wanted for content ask And Okay. clients. about I That's hi-tech business helpful. now

sure So competitors as views an away your viewing are I to how work, then broadly that this you business? large opportunity that and you going know be stepping on from am

Tiger Tyagarajan

that we do range kind of Bryan, a clients. for of work

that proud are do. we We that very of work

strongly As imagine, it do, we that work safe, we makes we on good. the with we and all clients people so we really that that so of about all operational you our do. feel that it are actually focus relationship that safe, that business, in therefore business, can on. makes good And really proud delivery, in so society work excellence Like position the the have we

Bryan Bergin

you. Thank Okay.

Tiger Tyagarajan

Bryan. Thanks,

Operator

Bryan Keane question next with comes Deutsche our from Bank. And

You proceed. may

Bryan Keane

guys. Yes. Hi,

the on up follow margins quarter. to wanted on Just the

that in up guys a deals been have a at the at the of at going was there than higher XX.X%, might is or Street of to higher little XX%. little couple thought trying in quarter to figure I came in large the guys had out originally that you was costs, was but extra I or think bit plan? coming just on you where it ramp you

Ed Fitzpatrick

export in was largely didn't it with was it come we think know, in, we dependent, was think but as with you the were, aligned the going QX. that subsidy, would toggle come in And Brian. where when really to I

would export subsidy, the the now of part that So expected as that from expect said uptick we we QX to have is not which I happen.

So after we up items subsidy, started offset we’re export that to dialing the try where shortfall that’s right other of now. the to getting

as know aligned. expecting, I was I what So high the don't outside it world it is but was remember XX%. as

the in it be bit it a a was very came XX% but what in, be think having to year. expected it we was I early than over higher, higher but to we little

Tiger Tyagarajan

subsidy one through broadly it the been on and direction we’ve of our item Bryan, has comes. in trajectory, going, of Yes, just when but depending the year actually margins been being, export

Bryan Keane

then for, one Okay, And Tiger. just great.

guys about pipeline pitches you obviously you doing the as deals, larger winning as as or competed in of as of were not they you are as of that you've many the players thinking to? used -- some with aren't so well much -- aren’t some that are, Just typically not larger seeing the seeing some sales are competitors as pipeline the that

Tiger Tyagarajan

that question credible, competitive I It hasn’t competitors. landscape The Bryan. the -- wouldn't that are a no is that, There very say competitors reduced. competitive is competitor respected intensity very market.

So I wouldn't say that.

a wins rate delivered, sole-sourced Our win built you've you've to I stable in it's that is and us XX% inside, typically situations. as And broader said important our our reputation, for is when of which do about competitive happens you’re that. so

there So competitive necessarily has in that been say any reduction wouldn’t I intensity.

Bryan Keane

Got it.

Okay. Thanks, guys.

Tiger Tyagarajan

Bryan. Thanks,

Operator

over like to turn remarks. Ladies to and closing today's the gentlemen, I'd for call portion any this of Roger Sachs concludes conference. now Q&A the

Roger Sachs

call Thanks everybody for today to we next you forward on look quarter. with and speaking again us joining our

Operator

today's Thank for this you conference Ladies call. participating. and gentlemen, concludes

Everyone now have disconnect. a great day. may You

Genpact Limited (G) 8 Nov 192019 Q3 Earnings call transcript