Firstsource Solutions posts 15.67% decline in consolidated net profit to Rs65.36 crore
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Kolkata: The RP Sanjiv Goenka Group’s business process outsourcing company, Firstsource Solutions Ltd on Friday reported a 15.67% decline in its consolidated net profit to Rs65.36 crore for the quarter ended 31 March 2017 compared to Rs77.52 crore in the year-ago period due to foreign exchange losses.
According to group chairman Sanjiv Goenka, the profit was impacted due to a foreign exchange loss of Rs35 crore during the quarter because of the Brexit impact.
Revenues from operations, however, increased 2.6% to Rs892.30 crore in the quarter under review compared to Rs869.43 crore in the corresponding period of the previous fiscal. Total expenditure in the fourth quarter of the current fiscal also increased 4.6% to Rs.793.29 crore as against Rs.758.31 crore in the year-ago period.
Earnings before interest, tax and depreciation (Ebitda) fell to Rs.99 crore in Q4FY17 compared to Rs.111.12 crore in Q4FY16, a decline of 10.9%.
The US accounts for 55% of the company’s total business followed by the UK, which contributes 38%. The rest of the world, including India, contributes the remaining of its total outsourcing business.
According to Goenka, the company “doesn’t want to continue” with a few of its non-profit generating businesses in the domestic market. However, he declined to share further details about his plans and to what extent these businesses together account for. India contributes 6.1% of the company’s total business.
Meanwhile, it also plans to expand its mortgage services business to the UK, apart from its existing US market.
It has around 25,871 employees across India, the Philippines, the UK and the US.