Firstsource Q3 net profit rises 16.6% to Rs 67.04 crore
The company’s net profit stood at Rs 57.51 crore in the same period last year.
Revenues grew 8.9% to Rs 817.8 crore in the reported quarter from Rs 751 crore in the corresponding period last year.
“Our third quarter results are consistent with expectations. We have been able to effectively meet operational as well as financial targets. Building on our growth momentum, we expect to see more demand across our key verticals,” Firstsource chairman Sanjiv Goenka said.
“We will continue to invest to expand our solutions portfolio and provide long-term value to our clients and stakeholders,” he added.
The company has entered into a definitive agreement with ISGN, a leading full service provider of mortgage technology and services, to acquire its BPO division.
Over 700 employees from ISGN’s BPO division in the US and India will become a part of Firstsource through this acquisition. No financial details were disclosed.
The acquisition will help Firstsource penetrate into the growing US mortgage BPO market, access marquee customers and strengthen its Banking, Financial Services and Insurance (BFSI) portfolio.
“The acquisition marks Firstsource’s penetration into the growing US mortgage BPO market. ISGN’s deep knowledge in the mortgage outsourcing space coupled with a set of marquee customers provides us with significant opportunities to cross-sell capabilities and leverage our global relationships,” Goenka said.
About 52.6% of the revenues were from the US, while the UK accounted for 39.6% and 7.8% was derived from Rest of World, including India.
In terms of verticals, 38.6% of the company’s revenues came from telecom & media, while 37.8% was from healthcare, 23.2% from BFSI and 0.4% from others.
During the reported quarter, Firstosurce saw headcount increase by 260, taking the total strength to 23,918.
The annualized attrition (post 180 days) stood at 44.7% for offshore (India and Philippines) operations (from 44.9% in second quarter), while that of onshore (US and Europe) was 43.2% (against 48.9%).
At the end of December 2013, it had cash of Rs 154 crore on its books.