Firstsource Solutions Q4 Review – Results Beat; Commentary Upbeat Led By Record ACV Wins: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Dolat Capital Report

Firstsource Solutions Ltd. reported constat currency revenue growth of 4.2% QoQ (our estimate: 2.8%) led by healthcare/communication, media and telecom up 2.7%/9.6% growth, while banking, financial services was up 2.1% QoQ.

Operating profit margin was up 30 basis points QoQ to 11% (our estimate: 10.9%) despite investments in sales engine.

Firstsource Solutions shared CC revenue growth guidance of 10%-13% for FY25 including contribution of ~160 bps from QBSS acq. (versus FY24: 1.1%) and operating profit margin band of 11-12%. It aims to achieve $1 billion exit organic revenue run-rate by FY26E.

We believe strong execution focus and deal wins across existing/new clients will help in picking-up the growth momentum, while we remain watchful of pickup in mortgage/provider as it would be a key in driving robust growth.

We tweak our FY25/FY26E earnings per share estimate (-2.2%/+0.1%) and maintain ‘Accumulate’ rating with target price of Rs. 230 valuing at 22 times on FY26E EPS (~two times PEG).

Click on the attachment to read the full report:


This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

. Read more on Research Reports by NDTV Profit.

Leave a Comment