Firstsource Q4 net up 74.2% y-o-y

Revenues rose 14.6% to Rs 712.5 crore for the reported quarter compared to Rs 621.8 crore in the corresponding period last year

Business process outsourcing firm Firstsource, today reported net profit of Rs 40.2 crore for the fourth quarter ended March 31, 2013 up 74.2% from the corresponding quarter last financial year.

Revenue for the quarter was up 14.6% at Rs 712.5 crore from Rs 621.8 crore in the same quarter last fiscal.

The company that managed to get RP-SP Goenka group as promoters on board in FY13 saw its sequential numbers impacted as it plans of restructuring the company to profitable growth was put in action.

Net profit on a sequential basis was down 3%, due to interest cost that the company had to incur. The interest for the fourth quarter was Rs 19.8 crore. Revenue on a quarter-on-quarter basis was flat, as the firm focused on weeding our non-profitable business. During the quarter Firstsource shut down two of its centres in India catering to domestic market, as part of its restructuring plans.

However, the company managed to improve its operating earnings before interest, tax and depreciation (EBIDTA) to 11.7% from 8.5% on a year-on-year basis.

“The last fiscal saw many developments at Firstsource: significant were the repayment of the FCCB in full and  induction of the RP-SG Group as the promoter in the company. The year was also marked by a significant improvement in the financial performance of the company, demonstrated by revenue growth of 25% and PAT growth of 137% coupled with margin expansion. The fundamentals of our business continue to remain the same with sharp focus on growth and profitability,” said Rajesh Subramaniam, Managing Director and Chief Executive Officer of Firstsource Solutions.

For the full year, the company’s net profit was Rs 146.6 crore, up 136.3% Y-o-Y, and revenue grew 25% at Rs 2,818.5 ccrore.

At the end of the fiscal year, the company had a total headcount of 31,872. For the quarter, the company reported attrition in its offshore centre of 49.2%, down from 59.4%. Onshore attrition was at 34.4% and domestic attrition was at 87.9%.