Firstsource net zooms 143%, to raise $275mn

Mumbai-based pure-play business process outsourcing (BPO) company Firstsource Solutions reported a 143% rise in net profit at Rs 45.6 crore for the quarter ended September 30, 2007 when compared with Rs 18.7 crore in the corresponding quarter of the last financial year.

Revenue for the quarter was Rs 296.5 crore, up nearly 62% from Rs 183.2 crore in the corresponding quarter of the last fiscal. Sequentially, net profit was up 2.9% and revenue was up 5.2%.

Ananda Mukerji, MD & CEO, said: "Strong performance in the first half, along with the strategic acquisition of MedAssist, is expected to put us on a higher trajectory. We continue to see increased opportunities in all our verticals as well as in the domestic market." 

Firstsource added to its healthcare business services by acquiring MedAssist Holdings, and thereby entered the very attractive healthcare provider segment adding capabilities like revenue cycle management - a rapidly growing area.

The company also commenced operations in two new centres, Manila, Philippines & Indore, India. The Manila centre currently has 150 employees,  and the Indore centre currently has over 220 employees.

Rajesh Subramaniam, CFO, said: "Growth in profits this quarter has been a combination of continued focus on operational performance and prudent hedging policy. Our diversified revenue stream and geographical spread have stood us in good stead."

The board also approved the issuance of foreign currency convertible bonds (FCCBs) up to $275 million (around Rs 1,086 crore), subject to shareholder and regulatory approvals. The proceeds of the issue will be utilised for repayment of debt contracted at the time of acquiring MedAssist Holdings.