Firstsource Q1 revenues up by 2.6 percent
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Firstsource Q1 revenues up by 2.6 percent

By SiliconIndia   |    1 Comments
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Bangalore: India's leading BPO company Firstsource Solutions has registered a 2.6 percent growth in the revenues in Quarter on Quarter (QoQ) growth, as the revenues were $100 million as compared to $98.3 million for the period ended on March 2009, and are up by 18.8 percent on Year on Year basis (YoY) for the quarter ended June 2008, at $85 million.

The Earnings Before Interest and Taxes (EBIT) accounted at $9.7 million, at an increase of 30.5 percent, which was at $7.5 million for the quarter ended on March 2009, and up by 22.9 percent on YoY basis for the year ended June 2008 at $7.9 million.

The reasons for the increased revenues are strong performance from Healthcare vertical due to catch up in payment delays and larger approval of high dollar claims. Higher contribution from Telecom & Media and BFSI verticals also helped along with improvement in productivity and efficiencies.

"It has been a strong quarter from both - growth and margins perspective. While there is greater stability in the business environment, we are still cautious about immediate growth prospects. Our value proposition continues to be very strong and while we anticipate some degree of volatility in the quarters ahead, overall, in FY10 we expect to see positive growth and improvement in margins," said Ananda Mukerji, Managing Director and CEO, Firstsource.

The Profit After Tax (PAT), came down to $7.91 million, as compared to $8.52 million, for the quarter ended on March 2009.

"Q1 performance has exceeded our expectations largely due to improved performance of our BFSI Collections business and the Healthcare provider business. We continue to focus on overall margin improvements across all our verticals," said Carl Saldanha, Global CFO.

The offshore attrition rates in for India, Argentina and Philippines stood at 31.3 percent as compared to 35.8 percent in Q4 in FY09. The onshore attrition rates in the U.S. and the U.K. were at 33 percent compared to 38.4 percent in Q4 in FY09. The domestic attrition rate went up at 86.6 percent compared to 74.1 percent in Q4 in FY09.

The company has an employee strength of 23,355 as on June 30, 2009.

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Reader's comments(1)
1: Results are good, as only BFSI sector had revived.
Posted by:Tanmay - 28 Jul, 2009
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