ICICI Direct: De-Growth In Top Client Impacts Firstsource Solutions’ Revenues
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ICICI Direct Report
Firstsource Solutions Ltd. reported 5.6% QoQ decline in reported dollar revenues, 4.3% QoQ decline in constant currency terms.
The revenue decline was mainly due to 36.3% QoQ fall in top client partly offset by 13.0% QoQ increase in top two-five clients.
Vertical wise, communications media and tech declined 33.2% QoQ mainly due to decline in top client, partly offset by 13.0% QoQ growth in banking and financial services and insurance clients.
Ebit margin improved 20 basis points QoQ to 11.0%. Going forward, the company expects revenues to improve and has guided for 6%-10% YoY growth in FY21E revenues in constant currency terms. The company also expects operating margins in the range of 11.0%-11.5%.
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