Firstsource Solutions hits highest level since January 2008; stock up 15%

The stock rallied 15% to Rs 74.20, extending its Tuesday's 3% gain on the BSE.

Firstsource Solutions (FSL) has rallied 15% to Rs 74.20, extending its Tuesday’s 3% gain on the BSE, after the company reported higher-than-expected 170 bps expansion in EBITDA (Earnings before interest, tax, depreciation and amortization) at 14.8% in March quarter (Q4FY18). The stock was trading at its highest level since January 10, 2008.

The company reported net profit of Rs 928 million, higher than analysts' estimate of Rs 840 million, mainly on the back of better-than-expected performance at the EBITDA margin level.

“Healthy margin expansion took place on account of lower-than-expected employee expenses (67.2% as a percentage of revenue