Short answer
Genpact LTD (G) filed its fiscal 2016 10-K annual report with the SEC on Mar 1, 2017. It reported revenue of $2.6B and net income of $270M.
- Top risk flagged: Indian tax assessments: $158 million in disputed demands for tax years 2009 and 2013, with $20 million paid under protest
FY2016 key financial metrics · XBRL
- Revenue
- $2.6B
- Net income
- $270M
- Operating margin
- 13.3%
- Gross margin
- 39.5%
- EPS (diluted)
- $1.28
- ROE
- 21.0%
- Operating cash flow
- $346M
Source: XBRL data from the Genpact LTD (G) FY2016 10-K on SEC EDGAR. USD.
Genpact LTD FY2016 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Digital business process management model, combining domain expertise, analytics, technology and process operations
- New Lean Digital Innovation Center launched in 2016, supporting design thinking, digital incubation and rapid co-innovation
- Strategic emphasis shifted toward digital and consulting solutions, with significant 2016 investments in both areas
- Revenue $2.57B, with Global Clients contributing $2.21B, or 86%, versus GE’s 14%
- Workforce exceeded 75,000 across 25 countries, including 75 delivery centers in 17 countries and services in 30+ languages
Management Discussion & Analysis
- Revenue $2,570.8M, up 4.5% YoY, or 6% constant currency
- Global Clients best performer: $2,212.9M, up 10.6%; GE worst: $357.9M, down 22.2%
- Gross margin 39.5% vs 39.3%; operating margin 13.3% vs 13.6%; net margin 10.5% vs 9.7%
- Operating cash flow $345.8M; capex $27.5M higher; share repurchases $345.2M
- GE revenue volatility risk, wage inflation, currency exposure and tax-holiday expirations threatening margins and cash flows
Risk Factors
- Indian tax assessments: $158 million in disputed demands for tax years 2009 and 2013, with $20 million paid under protest
- North America concentration: over 65% of 2016 revenue, exposing Genpact to U.S. economic weakness and offshore-outsourcing restrictions
- GE dependency: 13.9% of 2016 revenue, with the new MSA eliminating minimum purchase commitments and allowing 30-day termination
- Technology disruption: cloud services, artificial intelligence and automation replacing historical business-process services
- Debt burden: $900 million outstanding under the credit facility as of December 31, 2016, subject to leverage and interest-coverage covenants
Generated from the filing text; verify against the original. How to read a 10-K
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