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Firstsource Solutions - Weak Collections Business Performance To Impact Near Term Revenues: ICICI Direct

Firstsource Solutions - Weak Collections Business Performance To Impact Near Term Revenues: ICICI Direct

An attendee wearing headphones works on a laptop computer (Photographer: Luke MacGregor/Bloomberg)
An attendee wearing headphones works on a laptop computer (Photographer: Luke MacGregor/Bloomberg)

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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.

Click on the attachment to read the full report:

ICICI IDirect Firstsource Analyst Meet Update.pdf

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