RP Sanjiv Goenka Group

Money Control: Firstsource Q3 net up 16.6% to Rs 67.04 cr

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Publication: Money Control

BPO firm Firstsource Solutions today posted 16.6 percent rise in consolidated net profit at Rs 67.04 crore for the quarter ended December 2015.

The company’s net profit stood at Rs 57.51 crore in the same period last year.

Revenues grew 8.9 percent to Rs 817.8 crore in the reported quarter from Rs 751 crore in the corresponding period last year.

“Our third quarter results are consistent with expectations. We have been able to effectively meet operational as well as financial targets. Building on our growth momentum, we expect to see more demand across our key verticals,” Firstsource Chairman Sanjiv Goenka said.

“We will continue to invest to expand our solutions portfolio and provide long-term value to our clients and stakeholders,” he added.

The company has entered into a definitive agreement with ISGN, a leading full service provider of mortgage technology and services, to acquire its BPO division.

Over 700 employees from ISGN’s BPO division in the US and India will become a part of Firstsource through this acquisition.

No financial details were disclosed. The acquisition will help Firstsource penetrate into the growing US mortgage BPO market, access marquee customers and strengthen its Banking, Financial Services and Insurance (BFSI) portfolio.

“The acquisition marks Firstsource’s penetration into the growing US mortgage BPO market. ISGN’s deep knowledge in the mortgage outsourcing space coupled with a set of marquee customers provides us with significant opportunities to cross-sell capabilities and leverage our global relationships,” Goenka said.

About 52.6 percent of the revenues were from the US, while the UK accounted for 39.6 percent and 7.8 percent was derived from Rest of World, including India.

In terms of verticals, 38.6 percent of the company’s revenues came from Telecom and Media, while 37.8 percent was from Healthcare, 23.2 percent from BFSI and 0.4 percent from others.

During the reported quarter, Firstsource saw headcount increase by 260, taking the total strength to 23,918. The annualised attrition (post 180 days) stood at 44.7 percent for offshore (India and Philippines) operations (from 44.9 percent in second quarter), while that of onshore (US and Europe) was 43.2 percent (against 48.9 percent).

At the end of December 2013, it had cash of Rs 154 crore on its books.

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