Firstsource Q4 PAT up 46% year-on-year

Firstsource Solutions though reported a robust growth in net profit for the fourth quarter ended March 31, 2014, the company owned by RP-Sanjiv Goenka Group saw its topline drag as it moved out of non-profitable accounts.

The business process management company reported net profit of Rs 58.8 crore for the fourth quarter ended March 31, 2014, up 46.4 per cent from Rs 40.2 core in the same period last year.

Profit after tax were up 21.8 per cent on sequential basis (compared to trailing quarter).

Revenue for the quarter were up 11.7 per cent at Rs 796.2 crore from Rs 712.5 crore in the corresponding quarter; on a quarter-on-quarter basis the firm’s topline was down 0.4 per cent from 799.8 crore in quarter ended December 31, 2013.

For the financial year 2013-14, Firstsource’ net profit was 31.6 per cent at Rs 193 crore.

"Fiscal 14 has been a year of strong profitable growth with a net profit growth of 31.6% over the past year. We continue to deepen and strengthen our relationship with our clients through new value added services. A conscious decision to terminate non-profitable accounts will yield benefit in the ensuing year. As we step into FY15, our focus continues to be on profitability and margin accretive growth," said Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group and Firstsource Solutions.

The company had a total headcount of 27,666 for the fiscal year 2014. It saw its headcount reduce by 4,200 employees.

Attrition for the company continued to be on a higher side. Offshore attrition (centres in India and Philippines) had attrition of 54.8%, up from 49.2% on a sequential basis. Onsite centres in the US and Europe saw attrition levels at 38.6% and domestic attrition (India and Sri Lanka) was at 85.6%, from 92.8% last quarter.

The company's cash reserves were at Rs 188.9 crore. The company's US subsidiary successfully made the principal repayment of $45 million during the year.