Mumbai: Firstsource Solutions, a back-office firm expects a rise in basis points in operating margins in next few quarters. The basis points might raise upto 150-200 on the grounds of higher productivity and lower expenses, says The Economic Times.

Ananda Mukerji, CEO and MD, Firstsource said in a press conference, “We also see a change in leverage coming in as our revenues grow and our sales, general and administrative expenses as a percentage of revenues come down.” The company has initiated and identified places where productivity can be improved.

There is possibility of synergies flowing across North America, particularly after the MedAssist integration, said an official from Firstsource. The operating margin of the company in the June quarter was 9.4 percent. For the quarter to June, Firstsource reported a net loss of 500.5 million rupees on account of a charge amounting to 801.6 million rupees due to foreign exchange variation of its outstanding overseas convertible bonds, reports The Economics Times. However, in December 2007, the company made a profit of $275 million through overseas convertible bonds.

There is a rise of 49 percent in revenue of 4.08 billion rupees. 28 percent of the revenue of the quarter was contributed by Banking, financial services and insurance (BFSI) segment. However, Mukerji says that these segments are now seeing sluggish growth.

Firstsource is concentrating on telecoms, media and healthcare more than BFSI at this point in time. "Collections continue to be under stress due to the prevailing conditions in the U.S.,"

Firstsource is increasing the numbers of collectors both in the U.S. and India, though the relative growth of BFSI is slow. Healthcare segment made a profit 39 percent to revenues, whereas telecoms and media segment contributed nearly 31 percent during the quarter. 62 percent of the company’s revenues come from North America and about 28 percent from the U.K.