Firstsource Solutions Ltd. share price target

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.

Firstsource's results were below our expectations largely due to lower-than-expected EBITDA margin estimates Revenues from operations increased 0.5% QoQ to | 864.4 crore lower than our | 878.1 crore and 2.1% QoQ growth estimate...

Soften Operating Performance Due to Macro Environment Headwinds: Muted revenue growth & margins declined by 60bps: FSL reported revenue ofRs. 8854 mn in Q3FY17 which is up by 0.1% QoQ and 8.2% YoY. EBITDA in Q3FY17 is lower by 4.8% QoQ at Rs.1072 Mn which was at Rs. 1126 Mn in Q2FY17 and the margins dropped to 12.1% which is down by 62 bps QoQ and 27 bps YoY. Thissluggish movement and ramp down in margins mainly due to currency headwinds, weakness in mortgage business, and lower volumes from two of the company's telecom clients.

ICICI Securities Ltd | Retail Equity Research Firstsource's results were way above our expectation on all fronts with revenue, margins and PAT above our estimates Revenues from operations grew 0.3% QoQ to | 860.1 crore above our 3% QoQ de-growth and | 831.5 crore estimate. Constant currency revenues grew 2.1% QoQ and 13.9% YoY...

Strong Traction Continues in ISGN; Debt Repayment is in Line: Revenue declined by 1% QoQ impacted by GBP depreciation: In Q2FY17,FSL recorded revenue at Rs. 8844 Mn compared to Rs.8935 Mn in Q1FY17which is a de-growth of 1.0% QoQ. This is due to GBP depreciation; however the outstanding performance of ISGN business balanced the revenue loss. EBITDAmargins at 12.7% declined by ~ 60bps QoQ.

ICICI Securities Ltd | Retail Equity Research Firstsource reported decent Q2FY17 earnings where the operating performance was better than our expectations although the bottomline was below estimates due to a higher tax rate Revenues from operations declined 1% QoQ to | 884.4 crore below...

Firstsource Solutions is a leading global provider of customized Business Process Management (BPM) services to the Healthcare, Telecom, Media and Banking & Financial Services industries. It has operations in India, Philippines, Sri Lanka, UK and US. In Q1FY17, it reported revenue growth of 20.6% to Rs. 894Cr against Rs. 741Cr on yearly basis. Net profit surged 38.8% to Rs. 73.4Cr compared to Rs. 52.9Cr in the same quarter last year.

ICICI Securities Ltd | Retail Equity Research Firstsource reported decent Q1FY17 earnings wherein the operating performance was better than our expectations although the bottomline was lower due to higher tax rate Revenues from operations grew 2.3% QoQ to | 893.5 crore ahead of...

The Company serves organizations involved in Banking and Financial Services, Insurance, Healthcare, Telecommunications & Media and Publishing sectors. First Source assimilated best-of-breed processes, developed intellectual Property, adopted cutting edge technology, ensured on time delivery and invested in quality services to confirm maximum customer satisfaction. In process they help their clients to reduce operational costs, record process improvements and more importantly, focus on their core competence. It is 7th among top 10...