Firstsource Solutions Ltd. share price target

EBITDA margins declined 10 bps QoQ to 13.8% (vs. our estimate 14.6%) mainly on account of higher other expenses (up 9.1% QoQ) Reported PAT rose 5.7% QoQ to | 98.1 crore mainly on the back of lower tax rate (11.4% as percentage of PBT vs. 14.4% in Q2FY19) In-sourcing by top client, payer ramp down to impact FY19E topline Rupee revenues grew 3.2% QoQ but were below our expectations. This was mainly due to continuous headwinds in healthcare payer business impacting top 2-5 client growth (declined 5.7% QoQ). Further, revenue...

Revenues from operations grew 3.9% QoQ to | 954.7 crore (above our 2.3% de-growth and | 897.5 crore estimate) mainly led by rupee depreciation and higher growth in non-top five clients. Geographically, the US reported healthy 6.1% QoQ growth while vertically BFSI led growth & reported 6.9% QoQ growth The EBITDA margin remained flat QoQ at 13.9% mainly led by higher...

ICICI Securities Ltd | Retail Equity Research Revenues from operations grew 2.4% QoQ to | 919.1 crore, above our 1.4% de-growth and | 885.1 crore estimate. Revenues in constant currency grew 1.1% sequentially At 13.9%, EBITDA margins contracted ~80 bps QoQ, above our 13.5% and 130 bps decline estimate. The better-than-expected...

ICICI Securities Ltd | Retail Equity Research Revenues from operations grew 1.1% QoQ to | 897.3 crore and were below our 4.9% growth and | 930.4 crore estimate At 14.8%, EBITDA margins expanded 170 bps QoQ and were way above our 13.5% and 40 bps expansion estimate. Healthy margin expansion took place on account of lower-than-expected employee expenses (67.2% as a percentage of revenue vs. 68% expectation) and lower other expenses (down 2.7% QoQ)...

ICICI Securities Ltd | Retail Equity Research Revenues from operations grew 1.6% QoQ to | 887.2 crore and was above our 1% de-growth and | 864.4 crore estimate At 13.1%, EBITDA margins expanded 50 bps QoQ and was above our 12.8% and 20 bps expansion estimate. Margin expansion came...

Revenues from operations declined marginally by 0.6% QoQ to | 872.9 crore and was above our | 849.8 crore estimate At 12.6%, EBITDA margins expanded 110 bps QoQ and were in line with our 12.5% and 100 bps expansion estimate. Margin expansion...

(FSL) are not strictly comparable on QoQ basis as the company divested some of its domestic businesses during Q1FY2018. During Q2FY18, FSL reported another quarter of better-thanexpected operating performance against our modest estimates for Q2FY2018. Operating profit margin (OPM) improved by 110BPS QoQ (ahead of our estimates) despite Rs 3.5 crore (one-off) shutdown costs relating to domestic...

ICICI Securities Ltd | Retail Equity Research Firstsource's results were largely in line with our expectations. Revenues from operations declined 1.6% QoQ to | 877.7 crore, lower than our flat growth and | 892.3 crore estimate At 11.5%, EBITDA margins expanded 40 bps QoQ and were above...

Soften Operating Performance Due to Macro Uncertainties: Flat revenue growth; Margins drop by 101 bps QoQ - FSL recorded revenue of Rs. 8923 Mn in Q4FY17 with an increase of 0.8% QoQ, EBITDA in Q4FY17 islower by 7.6% QoQ at Rs.990 Mn which was at Rs. 1072 Mn in Q3FY17 and the margins dropped to 11.1% which is down by 101 bps QoQ and 222 bps YoY. In FY17, the company recorded revenue of Rs. 35556 Mn which is up by 10.1% YoY. PAT stood at Rs. 2792 Mn for FY17 which is up by 5.2% YoY compared with FY16.

Q4FY17 revenue growth (up 1.4% QoQ in cc terms)was in line with estimates. Net margin was down 60 bps QoQ due to losses in mortgage business (~6% of revenue, losses was Rs 150 mn), absorption of ~1,000 employees in Sky deal,headwinds in domestic telecom business, and INR appreciation.