Company: G
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001398659-25-000035
Chunk: 101

Company: Genpact LTD
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 101
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0 million in 2023. Our effective tax rate ("ETR") was 24.1% in 2024 and (4.8%) in 2023. The negative ETR in 2023 was primarily due to recording a non-recurring tax benefit of $169.9 million on an intercompany transfer of certain intellectual property rights from certain of our non-US subsidiaries to certain wholly-owned US subsidiaries.

Net income.  As a result of the foregoing factors, net income as a percentage of net revenues was 10.8% in 2024, down from 14.1% in 2023. Net income decreased by $117.6 million from $631.3 million in 2023 to $513.7 million in 2024, primarily due to a non-recurring tax benefit in 2023, partially offset by higher income from operations in 2024 compared to 2023.

Adjusted income from operations.  Adjusted income from operations ("AOI") increased by $51.0 million from $762.9 million in 2023 to $813.9 million in 2024. Our AOI margin increased from 17.0% in 2023 to 17.1% in 2024, primarily driven by cost efficiencies and operating leverage in 2024 compared to 2023. In calculating our AOI margin for 2023, we adjusted total net revenues to exclude net revenues of $0.5 million in 2023 from the business classified as held for sale.

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AOI and AOI margin are non-GAAP measures and are not based on any comprehensive set of accounting rules or principles. They should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. We believe that presenting AOI alongside our reported results offers useful supplemental information to our investors and management regarding financial and business trends relating to our financial condition and results of operations. A limitation of using AOI versus net income calculated in accordance with GAAP is that AOI excludes certain recurring costs and certain other charges, namely stock-based compensation and amortization of acquired intangibles. We compensate for this limitation by providing specific information on the GAAP amounts excluded from AOI.

We calculate AOI as net income, excluding (i) stock-based compensation, (ii) amortization and impairment of acquired intangible assets, (iii) foreign exchange gains/(