This IT stock declares dividend, yield goes to 3% and net profit jump 16% in Q3
2 min read . Updated: 05 Feb 2023, 07:22 PM IST
Premium- Firstsource Solutions Ltd is a mid cap company having a market cap of ₹8,099.03 Cr and the company deals in the IT sector as a Business Process Outsourcing (BPO).
Firstsource Solutions Ltd is a mid-cap company having a market cap of ₹8,099.03 Cr and the company deals in the IT sector as a Business Process Outsourcing (BPO). Firstsource is a pioneer in business process management services and offers solutions for many sectors like banking and financial services, mortgage lending, healthcare, communications, media, and technology. For the fiscal year 2022–2023, the corporation also announced an interim dividend in addition to its Q3 results.
The company has said in a stock exchange filing that its Board of Directors has approved “An Interim Dividend for the financial year ending 31st March 2023 @ Rs. 3.50 per share (35%) on the paid up capital of the Company. The record date for the purpose of determining the members eligible to receive the said interim dividend has been fixed as Friday, 17th February 2023."
In Q3FY23, the net profit of Firstsource Solutions reached ₹157.92 crore compared to ₹135.46 Cr in Q3FY22, representing a YoY gain of 16.58%. The company posted a net sales of ₹1503.31 Cr in the quarter ended December 2022 against ₹1445.64 Cr recorded in the quarter ended December 2021, representing a YoY growth of 4%. The EPS of Firstsource Solutions stood at ₹2.32 in Q3FY23 compared to ₹1.99 in Q3FY22.
Dr. Sanjiv Goenka, Chairman - RPSG Group and Firstsource Solutions, commented, "Firstsource delivered a steadfast performance amidst a challenging quarter. We fast-tracked our digital forays, continued our sharp focus on cost management and formalized our commitment to sustainable growth by unveiling our first ESG report. With a robust pipeline, an empowered workforce, and a diversified portfolio, we are poised to seize new market opportunities in the next few quarters."
On Friday, the shares of Firstsource Solutions Limited closed on the NSE at ₹116.35 apiece level, up by 4.35% from the previous close of ₹111.50. The stock recorded a total volume of 8,676,975 shares compared to the 20-Day average volume of 2,341,881 shares. In the last 1 year, the stock has fallen 20.23% but on a YTD basis, the stock has gained 12.58% so far in 2023. Considering the dividend announcement, the stock is trading at a dividend yield of 3% at the current market price. The stock touched a 52-week-high of ₹168.70 on (02-Feb-2022) and a 52-week-low of ₹93.00 on (20-June-2022). For the quarter ended December 2022 or Q3FY23, the company recorded a promoter shareholding of 53.66%, FIIs stake of 8.41%, DIIs stake of 14.18%, public stake of 21.38% and others’ stake of 2.37%.
