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We attended RPSG Group’s ‘Investor Day’, to understand Firstsource Solutions (FSOL)’s growth strategy and outlook. FSOL’s growth strategy encompassing the ‘OneFirstsource’ framework with focus on seven strategic levers and its UnBPO approach (shifts focus from labor arbitrage to tech arbitrage) has started yielding early results, as reflected in the revenue growth acceleration, deal intake, and pipeline.
Firstsource (FSOL) delivered yet another quarter of strong topline growth in Q3FY25; revenue grew 7.6% QoQ CC, compared to our growth estimate of 6.9%.
Quess Corp (QUESS)'s 3QFY22 performance was strong, with revenue growth (31% YoY), adj. EBITDA margin (4.9%), and adj. PAT (94% YoY) being in line with our estimates. Growth was broad-based, with 35% YoY growth witnessed in Operating Asset Management (OAM), 34% YoY in Workforce...
FSL is a domain driven BPM company, which has 150+ clients, including 17 Fortune 500 companies and nine FTSE 100 companies. The company has 27,398 employees across the US, UK, India and Philippines...
Improvement in provider, collection segment, diversification in CMT segment, new logo wins, focus on client mining cross selling of platforms business and hiring of leaders bodes well for long term revenue growth The company closed one large deal recently with a health insurance company, under which the company will replace with modern integrated software and services solutions The company faces high attrition, especially on the onshore side. Controlling the same can boost its financials...
29 July 2020 Quess Corp (QUESS)s 1QFY21 results were largely in line with estimates. Adjusted for businesses that remained completely closed (e.g. Excellus) and one-off COVID-19-related costs, underlying revenue, EBITDA, and recovery trends were reasonably resilient. Good cost rationalization, net debt reduction (by INR1b), healthy cash conversion (OCF/Ind-AS adjusted EBITDA = 152%), and the simplification of Terriers holding structure are key micro- level positives. Recent unemployment data (e.g. CMIE) and hiring outlook surveys hint at quick and strong recovery in the job market. However, the back and forth on lockdowns across cities would mean some amount of uncertainty in the job market. Operationally, our earnings estimate over FY2122E remains largely unchanged. Over the medium term, we expect QUESS to be the biggest beneficiary of the recently announced labor law reforms Quess Corp reported revenue/EBIT/PAT growth of 1%/-23%/-62% YoY (v/s est. Sequentially, overall headcount declined ~13% and general staffing headcount ~15%, in line with our expectations.
In the near term, the company is expected to face a significant revenue impact due to some supply side challenges, lower demand, impact in voice and exposure to retail & travel vertical (that we believe together may account for 10% of revenues). As a result, we expect a sharp fall in Q1FY21E revenues. We expect the company to witness a marginal improvement from Q2FY21E onwards and to reach Q4FY20 revenues in Q4FY21E (as indicated by management). Based on our assumptions, we expect dollar revenues to decline 8.4% YoY in FY21E. However, we expect the company to witness an...
Revenues in the quarter were impacted by the Covid-19 pandemic. The company has indicated at supply side issues and client specific challenges impacting Q4FY20 revenues. In the near term, FSL expects pressure in healthcare business (due to lower elective surgeries & pricing pressure), challenges in top client (due to slowdown in UK economy) and seasonality in collections. Hence, we expect revenues to decline 10% QoQ in Q1FY21E with margins falling 200 bps. Going forward, we expect a gradual recovery in the collection business (led by higher origination business and higher...
The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...
Firstsource reported a strong quarter with operating revenue witnessing growth of 7.5% QoQ. Growth was driven by the mortgage business (19% of revenue, 34.4% QoQ growth) and collections business (10% of revenue, 4.5% growth). Top customer (19.5% of revenue) also witnessed healthy revival in growth with 5.9% sequential growth after consistent pressure in last few quarters. As per the management, some amount of stability has started to come in the top client with ramp up in smaller projects within the client. Going forward, the management cited strong seasonality to play in...
