UK overtakes US as the largest market for Firstsource

In Q3, UK contributed 37.6% to its Rs 885.4 crore topline while operations in USA contributed 56.2%

The UK is poised to emerge as the largest revenue contributor to India based outsourcing company, Firstsource Solutions Limited as it entered into a large scale 10-year contract with UK based Sky Subscriber Services.

In the third quarter of the current financial year (FY), the UK contributed 37.6 per cent to its Rs 885.4 crore topline while operations in USA contributed to 56.2 per cent to its revenue. With the new deal, the company is expected to earn $ 56 million or Rs 379 crore in the very first year of operations which will make UK the largest revenue contributor.

So long, the US had been the prime revenue contributor to Firstsource's operations.

Although Sanjiv Goenka, chairman of the group declined to comment on the valuation of the deal, sources in the company said the deal would generate nearly Rs 12,000 crore for Firstsource over the contract period.

As per the deal, 1,300 employees on Sky's and other company's payroll will join the Firstsource team.

"The focus has been on the UK and we will continue to focus on this market in the coming days", Goenka said adding that he is keeping a close watch on the developments in the USA post the entry ban imposed on some countries.

During the quarter ended December 31, 2016, Firstsource reported a dip of 3.15 per cent in its net profit at Rs. 69.7 crore as against the Rs. 67.6 crore profit in the similar quarter of the last FY.

Its revenue, however, increased by 8 per cent at Rs 885.4 crore, in the period under review as compared to the Rs 818.5 crore earning in Q3 of the FY16.