Firstsource Solutions, one of the country’s leading business process outsourcing (BPO) firms, has reported a drop of 38 per cent in its consolidated net profit for the second quarter ended September 30. The company’s consolidated net income was down to Rs 28.2 crore from Rs 45.59 crore in the corresponding quarter last year.
The company expects to see a slowdown in revenue growth for the year ending March 2009 and has revised downwards its annual dollar revenue guidance to 21 per cent (32 per cent in Indian rupee terms) from 33-38 per cent announced earlier.
“The guidance factors 3 per cent adverse impact on account of cross currency movement. The other reasons are the overall market environment and longer time to close deals. Even among the existing clients, the volume growth are a bit slower,” said Ananda Mukerji, MD and CEO, Firstsource Solutions.
The quarterly numbers were impacted by hedging and other income losses of around Rs 4.5 crore. Revenue for the quarter at Rs 425 crore was up 53.8 per cent from Rs 276 crore in the same quarter last year. On a sequential basis, the company had reported a net loss of Rs 50 crore, whereas revenue was up 4.2 per cent from Rs 407.8 crore.