Company: G
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001398659-25-000059
Chunk: 84

Company: Genpact LTD
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 84
---
 due to a gain upon the redemption of a loan note associated with the sale of a business previously classified as held for sale and the waiver by a vendor of a liability, both in the first quarter of 2024, with no corresponding income recorded in the first quarter of 2025.

Income from operations. As a result of the foregoing factors, income from operations as a percentage of net revenues increased from 14.1% in the first quarter of 2024 to 15.1% in the first quarter of 2025. Income from operations increased by $23.7 million from $160.0 million in the first quarter of 2024 to $183.7 million in the first quarter of 2025, primarily due to higher gross margin, partially offset by higher SG&A expenses in the first quarter of 2025 compared to the first quarter of 2024.

Foreign exchange gains, net. We recorded a net foreign exchange gain of $1.3 million in the first quarter of 2025 compared to a net foreign exchange gain of $0.8 million in the first quarter of 2024. The gain in the first quarter of 2025 resulted primarily from gains on fair value hedges, partially offset by losses on remeasurement resulting from the appreciation of the Indian rupee against the U.S. dollar. The gain in the first quarter of 2024 resulted primarily from the depreciation of the Indian rupee against the U.S. dollar. 

Interest income (expense), net. Our interest expense (net of interest income) was $11.4 million in the first quarter of 2025, up $1.2 million from $10.2 million in the first quarter of 2024. The increase in interest expense was largely due to incremental interest expense on our senior notes issued in June 2024 and was partially offset by (i) the absence of any interest expense in the first quarter of 2025 on our senior notes issued in 2019, which were repaid in December 2024, and (ii) lower interest expense on our revolving credit facility and term loan due to lower SOFR and lower volume in the first quarter of 2025 compared to the first quarter of 2024. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.2% in the first quarter of 2024 to 4.7% in the first quarter of 2025. See the