Company: G
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001398659-25-000098
Chunk: 100

Company: Genpact LTD
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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2025 compared to $2.5 million in the second quarter of 2024. The gain in the second quarter of 2025 resulted primarily from gains on fair value hedges, partially offset by losses resulting from the appreciation of the Indian rupee against the U.S. dollar. The gain in the second quarter of 2024 resulted primarily from gains on fair value hedges and the depreciation of the Indian rupee against the U.S. dollar. 

54

Interest income (expense), net. Our interest expense (net of interest income) was $13.5 million in the second quarter of 2024 and 2025. The weighted average rate of interest on our debt, including the net impact of interest rate swaps, increased from 4.4% in the second quarter of 2024 to 4.8% in the second quarter 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 $10.4 million in the second quarter of 2025, compared to $3.3 million in the second quarter of 2024, primarily due to a $4.6 million larger gain on the fair value of deferred compensation plan assets in the second quarter of 2025 compared to the second quarter of 2024.

Income tax expense. Our income tax expense was $44.0 million in the second quarter of 2025, up from $40.4 million in the second quarter of 2024, representing an effective tax rate (“ETR”) of 24.9% in the second quarter of 2025, unchanged from the second quarter of 2024. 

Net income. As a result of the foregoing factors, net income as a percentage of net revenues was 10.6% in the second quarter of 2025, up from 10.4% in the second quarter of 2024. 

Adjusted income from operations. Adjusted income from operations (“AOI”) increased by $18.9 million, from $198.4 million in the second quarter of 2024 to $217.3 million in the second quarter of 2025. Our AOI margin increased from 16.9% in the second quarter of 2024 to 17.3% in the second quarter of 2025, largely driven by higher gross margin and an increase in other income, partially offset by higher SG&A expense