Firstsource net profit rises 28.3% to Rs 135 crore in September quarter

The company on Wednesday posted a rise in consolidated net profit

Business process management services provider Firstsource Solutions on Wednesday posted a 28.3 per cent rise in consolidated net profit to Rs 135 crore for the second quarter ended September 30.

Its net profit (attributable to owners of the equity) stood at Rs 105.2 crore in the year-ago period, Firstsource said in a statement.

Revenue from operations grew 20.3 per cent to Rs 1,418.2 crore in the reported quarter, from Rs 1,178.3 crore a year ago, it added.

We witnessed steady and consistent growth during the quarter. Expanding and maturing our digital ecosystem to accelerate transformation for our global clients continues to be a key area of focus," RPSG Group and Firstsource Solutions Chairman Sanjiv Goenka said.

To this end, the company added several industry-leading technology partners to its ecosystem during the quarter, significantly strengthening its digital capabilities, he added.

Firstsource has also announced the acquisition of The StoneHill Group, a US-based mortgage services provider.

The cost of acquisition was "USD 27 million including earnouts payable on 1st anniversary from closing", as per a Firstsource Solutions regulatory filing.

StoneHill Group's revenue for the nine months ended September 30, 2021, stood at USD 17.3 million, it added.

The acquisition provides Firstsource with adjacent capabilities in the mortgage value chain and positions it well to leverage the strong demand for residential mortgage loan trading and securitisation, the statement said.

The integrated offering enhances Firstsource Solutions' mortgage offerings with sophisticated domain expertise for mortgage quality control (QC) and due diligence, further advancing its vision to provide end-to-end mortgage solutions to mid and large market customers, it added.

"I'm also excited about our acquisition of The StoneHill Group a leading US-based mortgage services provider. We welcome StoneHill associates into our Firstsource family, Goenka said.

The company said its headcount stood at 27,835 employees as of September 30, 2021. It added 15 new clients during the quarter, creating a robust deal pipeline.