Firstsource Q1 up 41% y-o-y

Revenue up 6.5% at Rs 719 crore from Rs 675.2 crore in same quarter last financial year

RP Sanjiv Goenka group's business process outsourcing arm Firstsource, reported net profit of Rs 41 crore for the first quarter ended June 30, 2013, up 41.6% from Rs 29 crore in the corresponding quarter last year.

Revenue for the quarter was up 6.5% at Rs 719 crore from Rs 675.2 crore in the same quarter last financial year. On sequential basis the company's net profit w sup 2.1% and revenue grew 0.9%.

"Our focus continues to be on disciplined growth and consistent margin expansion. The productization efforts in customer insight analytics and webchat solutions are delivering better margin profiles and are great value add to our clients businesses. The Customer Management and Healthcare business continues to look positive with new client wins. The quarterly repayment of $1.25 million on the outstanding debt was paid and we continue to generate cash for subsequent repayments," said Rajesh Subramaniam, Managing Director & Chief Executive Officer.

As of June 30, 2013, Firstsource derived 46% revenues from the US, 34% from UK and 20% from rest of world, including India.

The company also managed to bring down its attrition. Offshore attrition was at 49.2% from 52.7%, Onshore (US and Europe) it was 34.4% and domestic business saw attrition at 87.9%.

Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group and Firstsource, who attended the press conference for the first time since he acquired the company said, "Growing legacies is a philosophy at the RP-Sanjiv Goenka Group. With this, we made a strategic investment in Firstsource, to widen our business portfolio and an entry into the business process management (BPM) industry. We are optimistic about Firstsource and the consistent growth in margins that the company has demonstrated."