Short answer
Genpact LTD (G) filed its fiscal 2018 10-K annual report with the SEC on Mar 1, 2019. It reported revenue of $3.0B (+9.6% year over year) and net income of $282M.
- Top risk flagged: GDPR, effective May 2018: EU privacy violations can trigger fines up to 4% of annual total revenue
FY2018 key financial metrics · XBRL
- Revenue
- $3.0B
- +9.6% YoY
- Net income
- $282M
- +7.2% YoY
- Operating margin
- 11.6%
- −0.4 pp YoY
- Gross margin
- 36.0%
- −2.5 pp YoY
- EPS (diluted)
- $1.45
- +8.2% YoY
- ROE
- 20.1%
- +1.6 pp YoY
- Operating cash flow
- $340M
- −5.4% YoY
Source: XBRL data from the Genpact LTD (G) FY2018 10-K on SEC EDGAR. USD.
Genpact LTD FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global professional services model, combining domain expertise, digital transformation, analytics and intelligent operations for enterprise clients
- Genpact Cora platform emphasized, integrating proprietary automation, analytics and AI technologies for client digital transformations
- Strategic shift toward domain-led digital solutions, acquisitions and expanded digital capabilities across strategic industries and geographies
- Revenue $3.0B, approximately 87,000 employees, 88 delivery centers across 17 countries
- Global Clients reached approximately 91% of revenue, up from approximately 77% in 2013, reducing GE concentration to 8.9% of 2018 revenue
Management Discussion & Analysis
- Revenue $3,000.8M, up 9.6% YoY, driven by Global Clients $2,732.6M, up 10.7%
- Gross margin 36.0% vs 38.6%; operating margin 11.6% vs 12.1%
- Best segment: Global Clients BPO revenue $2,345.0M, up 12.2%; worst: GE BPO revenue $157.8M, down 9.9%
- Operating cash flow $339.5M; acquisitions $111.6M, capex and intangible purchases $87.8M higher YoY
- Dividends $57.1M and share repurchases $154.2M; risks from wage inflation, currency volatility and tax-holiday expirations
Risk Factors
- GDPR, effective May 2018: EU privacy violations can trigger fines up to 4% of annual total revenue
- Brexit uncertainty: operations in the UK and EU, with UK client revenues exposed to pound sterling volatility
- India delivery concentration: substantial operations exposed to India-Pakistan hostilities, unrest and infrastructure disruption
- Cloud, AI and automation: emerging technologies have already replaced some historical services and may delay client spending
- GE concentration: GE contributed 8.9% of 2018 revenue and may reduce work through further divestitures
- Debt burden: $958 million outstanding under the credit facility as of December 31, 2018, 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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