Firstsource Solutions - Weak Collections Business Performance To Impact Near Term Revenues: ICICI Direct
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ICICI Direct Report
Firstsource Solutions Ltd. provides business process services to banking, financial services and insurance, communication, media, tech and healthcare
The company generates 49% revenues from BFSI while healthcare and communication form 30% and 20%, respectively
The company has witnessed healthy revenue improvement (up 19% YoY in FY21).
Firstsource Solution reiterated its revenue guidance of 14.5-15.5% in FY22, cut downwards from its earlier guidance range of 15-18%.
Ebit margin guidance maintained at 11.8-12.3%.
Weakness in collections business in the U.S. is one of the drivers of a cut in revenue guidance for FY22.
Firstsource Solution acquired U.S. based firm ‘StoneHill’, which focuses on loan quality control, due diligence and loan origination services for $27 million.
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