Firstsource June qtr net dips 63%

Business process outsourcing (BPO) firm Firstsource Solutions today reported a 63% decline in its consolidated net profit to Rs 10.6 crore for the quarter ended June 30, 2011.

The company had registered a net profit of Rs 32 crore in the same quarter of the previous fiscal, Firstsource Solutions said in a filing to the Bombay Stock Exchange.

Total income from operations rose to Rs 523 crore during the April-June quarter of 2011, compared to Rs 491 crore in the same period last year.

On a standalone basis, the company reported a net profit of Rs 7.1 crore for the June quarter, up 46.33% vis-a-vis the same period of the previous fiscal.

In a separate filing on the BSE, the company said it has raised $180 million (approximately Rs 800 crore) om long-term loans from the international market to refinance existing loans and foreign currency convertible bonds to reduce cost of finance.

The lenders include overseas branches of Axis Bank, Canara Bank, ICICI Bank and Indian Overseas Bank along with GE Capital, USA and DBS Bank.

The USD 180 million term loan has been fully drawn and the proceeds will be used to refinance existing external commercial borrowings and term loan of $64 million and the remaining balance, net expense, will be used toward the company's FCCB redemption obligation in December 2010.

As of June 30, 2011, the book balance of the lender was $264 million.

The interest rate of the new term loan is lower than the current rate on existing loans. Interest will be paid quarterly, while principal repayment on this new facility will commence in June, 3013, with final maturity in March, 2017.

Shares of Firstsource Solutions were trading at Rs 16.3 on the BSE, down 1.5% from their previous close.