Firstsource Solutions (FSL) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue from operations rose 10.2% to ₹31,058.76 million; PAT increased 31.6% to ₹1,929.62 million. Growth was flat on a constant-currency basis.

• FY14 priorities included consolidating operations, expanding margins, repaying debt, and investing in Customer Management and Healthcare capabilities.

Financial highlights

• Consolidated income from services rose 10% to ₹31,270.23 million; revenue from operations was ₹31,058.76 million versus ₹28,185.35 million in FY13.

• Operating EBITDA increased to ₹3,621.25 million from ₹2,795.62 million; operating EBIT rose to ₹2,864.23 million from ₹1,911.64 million.

• PBT increased 27.7% to ₹2,032.80 million; PAT was ₹1,929.62 million versus ₹1,465.92 million.

• Standalone total income declined 4.2% to ₹9,325.41 million, while standalone PAT rose 14.5% to ₹1,344.70 million.

Outlook and guidance

• Strategic focus is on growing Customer Management and Healthcare through targeted investment, multichannel services, automation, analytics, and productized offerings.

• Planned Healthcare services include revenue-cycle business office solutions, appeals and grievance management, and Customer Management; Analytics Services was being prepared for market launch.

• Management cited ACA-driven US Healthcare changes, multichannel adoption in Telecom & Media, and UK BFSI regulatory and economic activity as growth opportunities.