Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 195

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 195
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 interest expense on our senior notes issued in June 2024 and was partially offset by (i) the absence of interest expense in the first half 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 a lower SOFR and lower volume in the first half of 2025 compared to the first half of 2024. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.3% in the first half of 2024 to 4.8% in the first half of 2025. See the section titled “Liquidity and Capital Resources—Financial Condition” for further discussion.

Other income (expense), net. Our other income (net of expense) was $12.1 million in the first half of 2025, compared to $9.0 million in the first half of 2024, primarily due to a $2.4 million gain on a one-time sale of certain IT assets in the first half of 2025. 

Income tax expense. Our income tax expense was $88.4 million in the first half of 2025, up from $79.8 million in the first half of 2024, representing an effective tax rate (“ETR”) of 25.1% in the first half of 2025, up from 25.0% in the first half of 2024. The change in our ETR in the first half of 2025 was primarily driven by the mix of our pre-tax income and the impact of discrete items.

Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.7% in the first half of 2025, up from 10.4% in the first half of 2024. 

Adjusted income from operations. Adjusted income from operations (“AOI”) increased by $46.7 million, from $380.3 million in the first half of 2024 to $427.0 million in the first half of 2025. Our AOI margin increased from 16.5% in the first half of 2024 to 17.3% in the first half of 2025, largely driven by a higher gross margin, partially offset by higher SG&A expense in the first half of 2025 compared to the first