Firstsource net jumps 232% on hedging

CORPORATE SCORECARD

Pro-active hedging and diversification of revenues streams helped Mumbai-based Firstsource register a net profit of Rs 44.3 crore for the first quarter ended June 30, 2007, a rise of 231.8 per cent, compared with Rs 13.36 crore for the same quarter last year.

The company's revenue for the quarter rose 75.2 per cent to Rs 282.15 crore from last year's Rs 161.05 crore.

Sequentially, the company's net profit was up 26.9 per cent, while revenue increased by 1.9 per cent. Ananda Mukerji, managing director and CEO, said, "It has been a robust quarter and we have maintained our growth path and profitability margins. Our well diversified revenues, and conservative hedging policy has helped reduce the impact of the appreciating rupee.''

The appreciation of rupee had hit the margins by 1.75 per cent. But that was taken care of by effective hedging, and diversified currency mix.

Rajesh Subramaniam, CFO, said, "Growth in profit this quarter has been a combination of operational efficiency, the gains from our Northern Ireland and domestic businesses, and our pro-active forex hedging strategy."