Firstsource Solutions Ltd. share price target

4QFY25 came in at the upper end of guidance. 15.6% YoY CC revenue organic growth in FY25 top quadrant performance

Firstsource (FSOL) reported inline operating performance in Q4 – revenue grew 2.1% QoQ CC; EBITM expanded by 10bps QoQ to 11.2%. Growth was broadbased across verticals, except Diverse industries that saw seasonal weakness.

3QFY25 broadly in line. Estimate organic growth in FY25 is likely at ~16% CC terms. Possibly second best in the Tierr-2 set

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%.

Firstsource Solutions Limited is a leading player in the Business Process Management (BPM) industry.

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...

The company's robust growth guidance of 15-18% in CC terms is based on improvement in healthcare (especially provider business) and improvement in banking (led by growth in collection & fintech and UK banking). In addition, FSL expects communication, media & technology to gain traction led by improvement in top client and addition of new logos in US & UK in media & e-commerce. The company expects moderation in growth in mortgage (post a robust year) mainly led by slowdown in refinance. Further, we expect the healthcare segment to witness improved traction led by acquisition of...

The company has seen an improved market share in top client. We expect this trend to continue, going forward. Apart from traction in top client, healthy growth in media & e-commerce (added one US ecommerce client in the current quarter) will drive CMT revenues. This, coupled with improving UK BFS and mortgage business (led by refinancing, new home sales & delinquencies) is expected to drive the BFS business. Further, we expect the healthcare segment to witness improved traction led by acquisition of PatientMatters (cross sell opportunities), ramp of large deal win (US$22...