Firstsource Solutions (FSL) Q4 23/24 earnings summary

Executive summary

• FY24 revenue reached ₹63,362 million ($765 million), up 5.2% reported and 1.1% in constant currency; Q4 constant-currency growth accelerated to 4.5% YoY and 4.2% QoQ.

• FY24 EBIT margin was 11.0%; adjusted EBIT growth was 25.4%, excluding Q2 leadership-change charges. Adjusted PAT growth was 26.8%, excluding fair-value-related other income.

Financial highlights

• Q4 revenue was ₹16,705 million ($201 million), up 7.3% YoY reported and 4.5% in constant currency; QoQ constant-currency growth was 4.2%.

• Q4 EBIT was ₹1,830 million, with an 11.0% margin; EBIT grew 1.7% YoY, margin contracted 60 bps YoY and expanded 30 bps QoQ.

• Q4 PAT was ₹1,335 million, margin 8.0%; adjusted YoY decline was 5.5%. Diluted EPS was ₹1.90, versus ₹1.84 in Q3FY24 and ₹2.02 in Q4FY23.

• FY24 reported EBIT was ₹6,962 million, up 23.6% in the detailed P&L; adjusted growth was 25.4%, with adjusted margin expansion of 180 bps.

• FY24 PAT was ₹5,147 million, up 0.2% reported; adjusted growth was 26.8% and adjusted margin expansion was 130 bps. Diluted EPS was ₹7.34 versus ₹7.32 in FY23.

Outlook and guidance

• FY25 guidance: constant-currency revenue growth of 10–13% and EBIT margin of 11–12%.