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| Firstsource turns around, posts Q1 net of Rs 38 cr |
| BS Reporter / Mumbai Jul 29, 2009, 14:23 IST |
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Firstsource posted net profit of Rs 38 crore for the first quarter ended June 30, 2009, from a net loss of Rs 50 crore in the corresponding quarter last financial year. Revenue of the BPO firm grew 18.8 per cent at Rs 484.5 crore from Rs 472.3 crore in the same quarter last year.
Sequentially the company’s net profit was down 6.9 per cent from Rs 40.8 crore — but revenue grew 2.6 per cent from Rs 472.3 crore.
The increased revenues were due to strong performance in the Healthcare vertical due to catch up in payment delays and larger approval of high dollar claims. Also a higher contribution from Telecom & Media and BFSI verticals helped with improvement in productivity and efficiencies.
“We were expecting a weaker quarter compared to the last quarter, but the growth in the healthcare business (3 per cent) and efficiency improvement did well for us. On constant currency basis we saw the revenue grow 8.9 per cent y-o-y and 3.1 per cent sequentially. While the economic environment in our key market continues to be stressed we will see positive growth in FY10, as well as growth in margins,” said Ananda Mukerji, MD and CEO Firstsource.
The company see ramp ups in some of its business like the collections business in the BFS segment. Firstsource is ramping up its centre in the Buffalo, US as well as its centre in Colorado. “We had added 1,700 people last quarter but majority was hired in India and some in the US. This quarter we will add 100 people more in the US,” said Mukerji.
The company had gain of Rs 7.39 crore on foreign currency convertible bonds (FCCB). Previous quarter had seen a gain of Rs 63.5 crore due to FCCB buyback. As of now the total outstanding FCCB amount is $212 million from the $275 million raised.
While the company stated that it continues to see pressure in its healthcare segment due the rising unemployment and people falling of the insurance net, but the provider side of the healthcare business is seeing good momentum. Firstsource signed over 30 clients this quarter. It also signed on two new deals in telecom and three in the BFSI sector.
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