Results - Analysis

29-Apr-2025, 05:41
On consolidated basis

Quarter ended March 2025 compared with Quarter ended December 2024.

Net sales (including other operating income) of Firstsource Solutions has increased 2.81% to Rs 2161.46 crore.  

Operating profit margin has jumped from 15.11% to 15.40%, leading to 4.77% rise in operating profit to Rs 332.82 crore.  Employee cost increased from 62.17% to 62.53%.   Other expenses fell from 22.72% to 22.07%.   

PBIDT rose 6.14% to Rs 334.94 crore.  Provision for interest rose 8.39% to Rs 42.62 crore.  Loan funds remained nil.  

PBDT rose 5.82% to Rs 292.32 crore.  Provision for depreciation rose 7.35% to Rs 90.6 crore.  

Profit before tax grew 5.14% to Rs 201.72 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 41.03 crore, compared to Rs 40.35 crore.  Effective tax rate was 20.34% compared to 20.11%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 0.24% to Rs 160.69 crore.  

Promoters' stake was 53.66% as of 31 March 2025 ,compared to 53.66% as of 31 December 2024 .  

Quarter ended March 2025 compared with Quarter ended March 2024.

Net sales (including other operating income) of Firstsource Solutions has increased 29.39% to Rs 2161.46 crore.  Sales of Health care segment has gone up 33.32% to Rs 733.02 crore (accounting for 33.81% of total sales).  Sales of BFS segment has gone up 16.12% to Rs 723.45 crore (accounting for 33.37% of total sales).  Sales of Communication,Media & Technology segment has gone up 16.00% to Rs 456.00 crore (accounting for 21.04% of total sales).  Sales of Diverse Industries segment has gone up 147.10% to Rs 255.30 crore (accounting for 11.78% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 31.79% to Rs 331.43 crore.  PBIT of Health care segment rose 89.50% to Rs 101.46 crore (accounting for 30.61% of total PBIT).  PBIT of BFS segment rose 41.21% to Rs 133.68 crore (accounting for 40.33% of total PBIT).  PBIT of Communication,Media & Technology segment fell 11.68% to Rs 71.20 crore (accounting for 21.48% of total PBIT).  PBIT of Diverse Industries segment rose 10.69% to Rs 25.10 crore (accounting for 7.57% of total PBIT).  

PBIT margin of Health care segment rose from 9.74% to 13.84%.  PBIT margin of BFS segment rose from 15.19% to 18.48%.  PBIT margin of Communication,Media & Technology segment fell from 20.51% to 15.61%.  PBIT margin of Diverse Industries segment fell from 21.94% to 9.83%.  Overall PBIT margin rose from 15.07% to 15.29%.  

Operating profit margin has jumped from 14.99% to 15.40%, leading to 32.95% rise in operating profit to Rs 332.82 crore.  Employee cost decreased from 63.20% to 62.53%.   Other expenses rose from 21.81% to 22.07%.   

Other income fell 24.56% to Rs 2.12 crore.  PBIDT rose 32.31% to Rs 334.94 crore.  Provision for interest rose 60.65% to Rs 42.62 crore.  Loan funds rose to Rs 2,569.26 crore as of 31 March 2025 from Rs 1,533.23 crore as of 31 March 2024.  Sundry debtors were higher at Rs 1,686.03 crore as of 31 March 2025 compared to Rs 1,160.82 crore as of 31 March 2024.  Cash and bank balance declined from Rs 188.46 crore as of 31 March 2024 to Rs 166.99 crore as of 31 March 2025.  Investments rose to Rs 73.09 crore as of 31 March 2025 from Rs 41.54 crore as of 31 March 2024 .  

PBDT rose 28.99% to Rs 292.32 crore.  Provision for depreciation rose 34.56% to Rs 90.6 crore.  Fixed assets increased to Rs 1,362.77 crore as of 31 March 2025 from Rs 881.62 crore as of 31 March 2024.  Intangible assets increased from Rs 2,988.49 crore to Rs 3,679.92 crore.  

Profit before tax grew 26.64% to Rs 201.72 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 41.03 crore, compared to Rs 25.79 crore.  Effective tax rate was 20.34% compared to 16.19%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 20.37% to Rs 160.69 crore.  

Equity capital stood at Rs 696.99 crore as of 31 March 2025 to Rs 696.99 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 53.66% as of 31 March 2025 ,compared to 53.66% as of 31 March 2024 .  

Full year results analysis.

Net sales (including other operating income) of Firstsource Solutions has increased 25.95% to Rs 7980.31 crore.  Sales of Health care segment has gone up 33.29% to Rs 2,782.39 crore (accounting for 34.90% of total sales).  Sales of BFS segment has gone up 9.10% to Rs 2,711.92 crore (accounting for 34.02% of total sales).  Sales of Communication,Media & Technology segment has gone up 19.73% to Rs 1,689.77 crore (accounting for 21.20% of total sales).  Sales of Diverse Industries segment has gone up 126.36% to Rs 788.02 crore (accounting for 9.88% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 22.47% to Rs 1,194.14 crore.  PBIT of Health care segment rose 35.99% to Rs 370.14 crore (accounting for 31.00% of total PBIT).  PBIT of BFS segment rose 28.43% to Rs 448.23 crore (accounting for 37.54% of total PBIT).  PBIT of Communication,Media & Technology segment fell 1.37% to Rs 283.96 crore (accounting for 23.78% of total PBIT).  PBIT of Diverse Industries segment rose 39.24% to Rs 91.81 crore (accounting for 7.69% of total PBIT).  

PBIT margin of Health care segment rose from 13.04% to 13.30%.  PBIT margin of BFS segment rose from 14.04% to 16.53%.  PBIT margin of Communication,Media & Technology segment fell from 20.40% to 16.80%.  PBIT margin of Diverse Industries segment fell from 18.94% to 11.65%.  Overall PBIT margin fell from 15.40% to 14.98%.  

Operating profit margin has jumped from 15.09% to 15.13%, leading to 26.26% rise in operating profit to Rs 1,207.64 crore.  Employee cost increased from 61.70% to 62.60%.   Other expenses fell from 23.21% to 22.27%.   

PBIDT rose 21.49% to Rs 1206.77 crore.  Provision for interest rose 43.03% to Rs 147.88 crore.  Loan funds rose to Rs 2,569.26 crore as of 31 March 2025 from Rs 1,533.23 crore as of 31 March 2024.  Sundry debtors were higher at Rs 1,686.03 crore as of 31 March 2025 compared to Rs 1,160.82 crore as of 31 March 2024.  Cash and bank balance declined from Rs 188.46 crore as of 31 March 2024 to Rs 166.99 crore as of 31 March 2025.  Investments rose to Rs 73.09 crore as of 31 March 2025 from Rs 41.54 crore as of 31 March 2024 .  

PBDT rose 18.99% to Rs 1058.89 crore.  Provision for depreciation rose 25.68% to Rs 327.04 crore.  Fixed assets increased to Rs 1,362.77 crore as of 31 March 2025 from Rs 881.62 crore as of 31 March 2024.  Intangible assets increased from Rs 2,988.49 crore to Rs 3,679.92 crore.  

Profit before tax grew 16.23% to Rs 731.85 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 146.2 crore, compared to Rs 114.95 crore.  Effective tax rate was 19.74% compared to 18.26%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 15.49% to Rs 594.46 crore.  

Equity capital stood at Rs 696.99 crore as of 31 March 2025 to Rs 696.99 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 53.66% as of 31 March 2025 ,compared to 53.66% as of 31 March 2024 .  

Cash flow from operating activities increased to Rs 701.10 crore for year ended March 2025 from Rs 644.05 crore for year ended March 2024.  Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 241.20 crore, compared to Rs 85.10 crore during the year ended March 2024.  

 

FY2026 outlook:

For FY26, Revenue is expected to grow in the range of 12-15 % in constant currency terms .

EBIT margin to be in the range of 11.25-12% for FY2026.

Management Commentary:

Commenting on the results, Dr. Sanjiv Goenka, Chairman - RPSG Group and Firstsource Solutions, commented, 'FY25 has been a year of sustained momentum and strategic progress for Firstsource. I am delighted to share that we achieved US$1bn annualized revenue run-rate ' a landmark milestone in our transformational journey. Six consecutive quarters of sequential revenue growth and securing significant large deals is a clear validation of our relevance and value in a rapidly evolving market. Our UnBPO?? approach is resonating deeply with clients, offering them a pathway to reimagine operations through AI, digital, and domain-led transformation. We see this not just as a differentiator for Firstsource, but as a defining opportunity for the industry itself. As we look ahead, our strategic expansions across geographies ANZ, Romania, and South Africa and Trinidad and Tobago, the momentum from key acquisitions, and our purpose-led, skilled workforce position us to lead with purpose and scale.'

Firstsource Solutions : Consolidated Results

Quarter ended Year ended Particulars 202503 202403 Var.(%) 202503 202403 Var.(%) Net Sales (including other operating income) 2,161.46 1,670.46 29.39 7,980.31 6,336.25 25.95 OPM (%) 15.40 14.99 41 bps 15.13 15.09 4 bps OP 332.82 250.34 32.95 1,207.64 956.45 26.26 Other Inc. 2.12 2.81 -24.56 -0.87 36.84 PL PBIDT 334.94 253.15 32.31 1,206.77 993.29 21.49 Interest 42.62 26.53 60.65 147.88 103.39 43.03 PBDT 292.32 226.62 28.99 1,058.89 889.90 18.99 Depreciation 90.6 67.33 34.56 327.04 260.22 25.68 PBT 201.72 159.29 26.64 731.85 629.68 16.23 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 201.72 159.29 26.64 731.85 629.68 16.23 EO Income 0 0 - 8.81 0 - PBT after EO 201.72 159.29 26.64 740.66 629.68 17.62 Taxation 41.03 25.79 59.09 146.2 114.95 27.19 PAT 160.69 133.5 20.37 594.46 514.73 15.49 Minority Interest (MI) 0 0 - 0 0 - Net profit 160.69 133.5 20.37 594.46 514.73 15.49 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 160.69 133.5 20.37 594.46 514.73 15.49 EPS (Rs)* 2.27 1.89 20.37 8.31 7.28 14.11 * EPS is on current equity of Rs 707.03 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Firstsource Solutions : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202503 202403 Var.(%) % of (Total) 202503 202403 Var.(%) Sales Customer management 0.00 0.00 0.00 - Health care 33.81 733.02 549.83 33.32 34.90 2,782.39 2,087.40 33.29 Collections 0.00 0.00 0.00 - Mortgage 0.00 0.00 0.00 - BFS 33.37 723.45 623.02 16.12 34.02 2,711.92 2,485.66 9.10 Communication,Media & Technology 21.04 456.00 393.11 16.00 21.20 1,689.77 1,411.34 19.73 Diverse Industries 11.78 255.30 103.32 147.10 9.88 788.02 348.12 126.36 Total Reported Sales 100.00 2,167.77 1,669.29 29.86 100.00 7,972.10 6,332.53 25.89 Less: Inter segment revenues   0.00 0.00 -   0.00 0.00 - Net Sales 100.00 2,167.77 1,669.29 29.86 100.00 7,972.10 6,332.53 25.89 PBIT Customer management 0.00 0.00 0.00 - Health care 30.61 101.46 53.54 89.50 31.00 370.14 272.18 35.99 Collections 0.00 0.00 0.00 - Mortgage 0.00 0.00 0.00 - BFS 40.33 133.68 94.67 41.21 37.54 448.23 349.00 28.43 Communication,Media & Technology 21.48 71.20 80.61 -11.68 23.78 283.96 287.90 -1.37 Diverse Industries 7.57 25.10 22.67 10.69 7.69 91.81 65.94 39.24 Total PBIT 100.00 331.43 251.49 31.79 100.00 1,194.14 975.02 22.47 Less : Interest 42.62 26.53 60.69 147.88 103.39 43.03 Add: Other un-allcoable -87.10 -65.68 -32.61 -314.42 -241.96 -29.95 PBIT Margin(%) Customer management   0.00 0.00 0.00 Health care   13.84 9.74 410.38   13.30 13.04 26.38 Collections   0.00 0.00 0.00 Mortgage   0.00 0.00 0.00 BFS   18.48 15.19 328.33   16.53 14.04 248.75 Communication,Media & Technology   15.61 20.51 -489.27   16.80 20.40 -359.44 Diverse Industries   9.83 21.94 -1,211.47   11.65 18.94 -729.04 PBT 100.00 201.71 159.29 26.63 100.00 731.84 629.68 16.23

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