Firstsource Reports Fiscal 2007 Total Income of Rs. 8,399.3 Million, Growth of 52.8% Y-o-Y

Mumbai April 27, 2007: Firstsource Solutions Limited (NSE: FSL.NS, BSE: FSL.BO), among India’s top 3 pure-play BPO companies reported its consolidated financial results according to Indian GAAP for the quarter and financial year ended March 31, 2007.

Highlights of fiscal 2006-07

• Total Income for 2006-07 at Rs. 8,399.3 million for the year ended March 31, 2007; YoY growth of 52.8%
• Profit after tax is Rs. 972.5 million for the year ended March 31, 2007; YoY growth 294.2%
• EPS on fully diluted basis for the year is Rs. 2.50

Highlights of Quarter ended March 31, 07

• Total Income for quarter ended March 31, 2007 at Rs. 2,768.0 million up 24% versus previous quarter and 71.2% versus corresponding quarter of previous year
• Profit after tax was Rs. 349.1 million; up 15.6% versus previous quarter and 60.6% versus corresponding quarter of previous year
• EPS on a fully diluted basis for the quarter is Rs. 0.85

Imp Highlights of FY 2006-07
Firstsource Client addition

• Firstsource added 22 clients in FY 2006-07
• Total number of clients as of March 31, 2007: 76 including 3 of the 5 largest US banks, 5 of 10 largest credit card companies in the US, 2 of the world’s Top 10 telecom companies and 3 "Fortune 100" healthcare companies
• Top 5 clients contributed 51.4% of revenue in FY07 and 5 clients had revenues over Rs. 500 million
• Revenues from existing clients contributed nearly 94.2% to revenues

Outlook
The company expects the strong growth momentum of the last few years to continue and sees topline growth for FY08 at about 50%.

Commenting on the performance, Ananda Mukerji, MD & CEO said, "It’s been a year of all-round achievement. We continued to grow both revenues and profits. Considerable progress was made in expanding our global delivery footprint with new centers being set up in USA, UK and Argentina. We also deepened our capabilities in the healthcare vertical and entered the domestic market with a significant contract. And last but not the least was Firstsource’s listing on the Indian stock exchanges and the beginning of our relationship with global and Indian investors. We see a continued strong demand with clients looking for financially strong vendors with a sustained track record of delivery."

Commenting on the financial performance, Rajesh Subramaniam, CFO said, "Growth in profits and margin expansion this financial year has been on the back of high revenue growth, benefits from economies of scale and operational efficiency. Going forward we see growth coming from strong demand in all our three verticals. In the BFSI sector for both collections and the joint Metavante-Firstsource service proposition, as also from healthcare services and the telecom business."

Source : Equity Bulls

Keywords