Firstsource Q2 net up 67.5% at Rs 36 cr, stock down 13%
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Firstsource Q2 net up 67.5% at Rs 36 cr, stock down 13%

Last Updated: Friday, October 26, 2012, 21:16
 
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Firstsource Q2 net up 67.5% at Rs 36 cr, stock down 13%
Mumbai: Business process outsourcing company Firstsource Solutions Friday reported a 67.5 percent jump in net profit at Rs 35.9 crore for quarter ended September 30, helped by a surge in revenues and operating margins.

The company, which got a new majority holder in RP- Sanjiv Goenka Group firm CESC on Thursday, had posted a Rs 21.5 crore profit for the corresponding period last fiscal.

Total revenues rose 34.6 percent to Rs 71.63 crore in the second quarter ended September 30 from Rs 533 crore while operating margin improved to 6.3 percent from 4.4 percent in the year-ago period.

Firstsource MD and Chief Executive Rajesh Subramaniam said the good numbers were possible due to a surge in volumes in the US, Britain and Asia as also the healthcare segment.

About the Rs 640-crore deal with Goenka, he said it is very positive and will help it tide over the issue of repayment of FCCB (foreign currency convertible bonds) and help in expansion of business into capital-intensive areas.

The company had raised USD 275 million in 2007 when its
share was trading at Rs 68, and bond redemption is due on December 4 this year.

Post-issue, there will be a shortfall of up to USD 60 million, Subramaniam said, stressing that he is confident of meeting the shortfall through debt.

Thursday's transaction will help the BPO expand into the lucrative healthcare segment where it was constrained due to investment limitations and give it the scope to allocate greater resources through working capital for deeper customer management, he said.

The Firstsource scrip shed 13.34 percent to end at Rs 12.34 Friday on the BSE.

As part of the deal, Firstsource, which was promoted by ICICI Bank, which post-deal will still hold 11.5 percent stake, will sell 226.89 million shares to Spen Liq, a unit of the Goenka-promoted electricity company CESC, at Rs 12.10 apiece. Post-transaction, the acquirer will get a 34.5 percent stake, highest by any of the shareholders.

Subramainam said during the quarter, the company lost 188 employees, and it has 32,365 on its rolls.

PTI


First Published: Friday, October 26, 2012, 21:16


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