Genpact Reports Results for the Third Quarter of 2014: Revenues up, income down

Key Financial Results – Third Quarter 2014

• Revenues were , up 9.9% from in the third quarter of 2013. Revenues from Global Clients were up 12.9%, and business process outsourcing (BPO) revenues from Global Clients were up 15.8%. Excluding the revenues from the Pharmalink acquisition completed in the second quarter, total revenues were up 7.8% and revenues from Global Clients were up 10.1%.

• Income from operations was , compared to in the third quarter of 2013.

• Adjusted income from operations was , compared to in the third quarter of 2013.

• Margins from adjusted income from operations were 15.0%, compared to 17.8% in the third quarter of 2013.

• Net income attributable to shareholders was , compared to in the third quarter of 2013.

• Diluted earnings per common share were , compared to in the third quarter of 2013.

• Adjusted diluted earnings per share were , compared to in the third quarter of 2013.

N.V. 'Tiger' Tyagarajan, president and CEO said, "We had a strong third quarter, with Global Client revenues resuming double-digit growth. We continued the disciplined execution of our strategy by focusing our resources and investments in our chosen verticals, geographies and service lines. We are ahead of our planned investments in client-facing teams and domain-led capability builds. We have also improved productivity in our client-facing teams, which is reflected in bookings momentum and improved win rates."

Revenues from Global Clients represented approximately 80% of total revenues, or , with the remaining approximately 20% of revenues, or , coming from GE. GE revenues decreased 0.4% from the third quarter of 2013, adjusted for dispositions by GE of businesses that continues to serve as Global Clients. Revenues from Global Clients grew 12.9% over the third quarter of 2013, led by growth in the life sciences, consumer product goods, insurance and infrastructure, manufacturing and services verticals. BPO revenues from Global Clients grew by 15.8%.

In the 12 months ending , grew the number of client relationships with annual revenues over from 77 as of . This includes client relationships with more than in annual revenue increasing to 30 from 25, and client relationships with more than in annual revenue increasing to 15 from 12.

76.0% of revenues for the quarter came from BPO services, up from 75.1% in the third quarter of 2013. Revenues from IT services were 24.0% of total revenues for the quarter, compared to 24.9% in the third quarter of 2013.

generated of cash from operations in the quarter, compared to in the third quarter of 2013. had approximately in cash and cash equivalents and short term deposits as of .

As of , had approximately 67,500 employees worldwide, up from approximately 62,200 as of . employee attrition rate for the quarter was approximately 27%, measured from the first day of employment, compared to 25% for the same period in 2013. Annualized revenue per employee for the quarter was , unchanged from the third quarter of 2013.

Year-to-Date Results

• Revenues were , up 6.6% from for the nine months ended .

• Income from operations was , compared to in the nine months ended.

• Adjusted income from operations was , compared to for the nine months ended .

• Margins from adjusted income from operations were 15.6%, compared to 17.0% for the nine months ended .

• Net income attributable to shareholders was , compared to for the nine months ended .

• Diluted earnings per common share were , compared to for the nine months ended.

• Adjusted diluted earnings per share were , compared to for the nine months ended.

employee attrition rate for the nine months ended was 25%, unchanged from the same period in 2013, measured from the first day of employment. Annualized revenue per employee for the nine months ended was , compared to for the nine months ended .

2014 Outlook

Tyagarajan continued, "Our growth strategy is beginning to generate results and we now expect 2014 revenues to be at the high end of the previously announced range of . We expect adjusted operating income margins to be at the low end of the previously announced range of 15.0 – 15.5%, reflecting accelerated investments in client-facing teams and capabilities."