Firstsource Solutions Q3FY25 Results: Net Profit Soars 24.5% to ₹160.3 Crore, Revenue Up 31% YoY; Dividend Declared
Firstsource Solutions, a part of the RP-Sanjiv Goenka Group, has delivered a stellar performance in the third quarter of FY25, reporting a 24.5% rise in consolidated net profit to ₹160.3 crore. This is a substantial jump from ₹128.7 crore in the corresponding quarter last year. The company’s revenue from operations surged 31% year-on-year (YoY) to ₹2,087.8 crore, compared to ₹1,594.8 crore in Q3FY24, reflecting strong business momentum and operational excellence.
Robust Performance and Strong Growth Trajectory
The business process services (BPS) provider has showcased consistent growth, driven by innovation, technology partnerships, and automation initiatives. The company’s EBIT margin, excluding one-time acquisition-related charges, is expected to be in the 11-11.5% range for FY25. Additionally, revenue growth is projected to be between 21.8% and 22.4% in constant currency terms, an improvement from the previous estimate of 19.5-20.5%.
Shares of Firstsource Solutions closed 0.37% higher at ₹353.55 on the BSE on February 7, reflecting investor confidence in the company’s strong performance and growth prospects.
Interim Dividend Declared
The board of Firstsource Solutions has declared an interim dividend of ₹4 per share (40%) for FY25. The record date for determining eligible shareholders is set for February 21, 2025.
Workforce Expansion and Upskilling Initiatives
As of December 2024, the company’s total workforce stood at 34,144 employees, with women comprising 46% of the workforce. The company added over 1,200 employees during the quarter while maintaining a stable attrition rate of 31%.
In a bid to enhance its digital capabilities, Firstsource has heavily invested in workforce upskilling. The company launched an enterprise-wide initiative focused on Generative AI and Digital Transformation, amassing nearly 150,000 learning hours to date.
Key Financial Metrics
Below is a snapshot of Firstsource Solutions’ key financial ratios and stock market performance:
| Metric | Value |
|---|---|
| Market Cap | ₹25,068 Cr. |
| Current Price | ₹355 |
| High / Low (52W) | ₹423 / ₹176 |
| Stock P/E | 44.7 |
| Book Value | ₹55.1 |
| Dividend Yield | 1.13% |
| Return on Capital Employed (ROCE) | 15.4% |
| Return on Equity (ROE) | 14.6% |
| Face Value | ₹10.0 |
| Debt to Equity Ratio | 0.58 |
| Industry P/E | 36.2 |
| Total Debt | ₹2,252 Cr. |
| PEG Ratio | 6.85 |
| Intrinsic Value | ₹94.4 |
| Graham Number | ₹99.8 |
| Piotroski Score | 6.00 |
| Price to Book Value | 6.43 |
Strategic Acquisitions for Future Growth
Firstsource Solutions continues its expansion strategy with the recent acquisition of Accunai India Services Private Limited (AccunAI), an AI development services provider. The deal, valued at ₹8.1 crore, marks the company’s commitment to integrating advanced AI-driven solutions into its service offerings.
The acquisition aligns with Firstsource’s long-term vision of leveraging AI and automation to enhance operational efficiency and client service capabilities.
Management Commentary
Dr. Sanjiv Goenka, Chairman of RP-Sanjiv Goenka Group and Firstsource Solutions, expressed confidence in the company’s sustained growth momentum.
“In Q3FY25, Firstsource continued to deliver consistent growth, driven by our focus on operational excellence, innovation, and client-centricity. The strength of our deal wins and pipeline showcases our success in leveraging deep industry expertise, technology partnerships, and proactive automation and AI integration, which resonates well with the clients,” Goenka said.
He further highlighted the company’s investment in its workforce and technology-driven transformation, which has positioned Firstsource as a future-ready organization.
Conclusion
Firstsource Solutions’ Q3FY25 results reflect its strong fundamentals, strategic growth initiatives, and commitment to technological advancements. With a robust revenue increase, profitability growth, and an emphasis on AI and automation, the company is well-positioned for sustained success in the coming quarters.
Investors and stakeholders can look forward to continued expansion, enhanced operational efficiency, and value creation as Firstsource strengthens its position in the global BPS industry.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.