Firstsource Q4 net down 16 % at Rs 65cr

5 May 2017

R P Sanjiv Goenka Group's outsourcing company Firstsource Solutions Ltd Friday announced a consolidated net profit of Rs 65.36 crore for the fourth quarter ending March 2017, down 15.7 per cent.
At a press conference, Goenka said our business in UK was hit by Rs 35 crore due to currency volatility in that country as an effect of Brexit. "This quarter net profit was Rs 65.36 crore against Rs 77.52 crore in the corresponding period last year. The profit is lower due to forex valuation losses of Rs 35 crore impacted by Brexit", he said terming the dip in profit as an accounting loss. However, he expressed confidence about improved performance by the company in the current fiscal.
He also said that the company will not carry on further with loss making contracts, majority of which are national. "We have to do something about these. We will terminate some of those contracts and sale the others", he said. Mentioning the company's mortgaging business was hit in US after Donald Trump took over as President, Goenka said, "If we feel our business is not doing well in US, we can shift it elsewhere". However he added that the business has started picking up slowly.
Firstsource's revenue from services stood at Rs 864.36 crore during the quarter, 1.4 per cent higher compared to Rs 852.52 crore registered in the corresponding quarter last year. The total outstanding debt is USD 66.25 million and the company is repaying USD 11.25 million every quarter. Goenka said the Q1 of the current fiscal would remain muted. He, however, remained optimistic about growth in the entire current fiscal. (EOIC)