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Please note that some of the matters we discuss in today’s call are forward-looking. These forward-looking statements involve a number of risks, uncertainties and other factors that should cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties include, but are not limited to, general economic conditions, and those factors set forth in our press release and discussed under the Risk Factors section of our Annual Report on Form 10-K and other SEC filings. Genpact assumes no obligation to update the information presented on this conference call.In our call today, we will refer to certain non-GAAP financial measures, which we believe provide additional information for investors and better reflect the way management views the operating performance of the business. You can find a reconciliation to those measures to GAAP, as well as related information in our news release on the Investor Relations section of our website, www.genpact.com. Please also refer to the Investor Fact Sheet on the front page of the IR section of our website for further details on our quarter results, which we hope you will find useful. This includes, among other things, geographic, industry vertical and BPM and IT revenue details. With that, let me turn the call over to Tiger. N. V. Tyagarajan Thanks, Shishir. Good morning, good afternoon, good evening everyone, and thank you for joining us on our call today. We delivered another great quarter in quarter three with strong growth in revenues, adjusted operating income and margin, earnings per share and cash flows. Growth was led by Global Client revenues from both business process management and IT. The integration of Headstrong is on schedule and we continue to gain traction in the marketplace where we have won 11 cross-sell deals including the five we discussed during our last earnings call. In total across all of our businesses in the third quarter we won 27 new logos including seven in our Headstrong Capital Markets vertical.
We also expanded existing client relationships significantly this quarter, the number of client relationships representing between $5 million and $25 million in annual revenues increased from $37 million to $52 million in the third quarter with seven coming from Headstrong. And the number of plants representing $1 million to $5 million in revenues increased from $59 million to $112 million with 25 from Headstrong. This gives us a great runway for growth.These results reflect the resilience and diversity of our business model. We continue to drive growth across industry verticals, service offerings and geographies. This was despite ongoing macroeconomic concerns particularly in the European Union financial markets, softness in U.S. consumer facing financial services and Japan. In line with our strategic initiatives of moving our leadership closer to our clients two of our key vertical business leaders ahead of manufacturing and services and ahead of CPG, pharma, retail as well as our leader for new product innovation are in the process of relocating to the U.S. With these changes and my own plan shift to New York, we will have a more balanced distribution of our leadership in close proximity to our key clients, which provides a much better opportunity to be in continuous and strategic dialogue with the C-suite and our client companies. This allows us to drive co-innovation, new idea generation, and thought leadership as well as faster response to client trends and needs. We are able to do this because of our history of operating excellence and the depth of our delivery leadership. We are also pleased to announce that on October 4, we closed the acquisition of EmPower Research an Integrated media and business research company with strong capabilities in social media research, media monitoring and measurement. This acquisition will add significant domain expertise intellectual property on our high-caliber senior management team to Genpact’s Smart Decision Services. It is a fantastic fixed for our business in a new growing area with numerous cross-sell opportunities particularly in the pharmaceutical, CPG and retail and financial services industries.
Here are the highlights for the third quarter. Quarter three revenues were $430 million representing 34% growth year-over-year with organic revenues increasing 13%. Global Client were again the growth driver with organic Global Client BPM revenues increasing 20% from the prior year third quarter and 4% sequentially. Also the Global Client IT business grew organically by 23% year-over-year and 10% sequentially.Adjusted operating income increased by 43% from quarter three of last year to $70.9 million. AOI margin improved by 110 basis points driven by improvements in efficiency, operating leverage from G&A and contribution from FX. Net income increased by 20%, diluted earnings per share increased by 19% and adjusted diluted earnings per share increased by 26%. After the quarter closed MF Global a Headstrong client filed for bankruptcy protection. Our results for the quarter and the outlook for the year reflect this development. Mohit will have more details in his comments. Read the rest of this transcript for free on seekingalpha.com