During Thursday’s trading session, the shares of a leading global provider of specialist domain-led Business Process Services (BPS) surged 4.4 percent to Rs. 314.9 on BSE, after the company announced setting up its operations in Australia and New Zealand.
With a market capitalisation of Rs. 21,477.8 crores, at 02:22 p.m., the shares of Firstsource Solutions (NS:FISO) Limited were trading in the green at Rs. 307.6, up by nearly 2 percent, as against its previous closing price of Rs. 301.6.
Is Firstsource Solutions a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Firstsource Solutions announced setting up its operations in Australia and New Zealand. The company will be headquartered in Victoria, Melbourne, and is expected to create over 400 new local jobs over the next five years.
During a meeting in Delhi on 19th September, Firstsource’s Chairman, Sanjiv Goenka, and other executives met the Premier of Victoria to discuss mutual support for the establishment of Firstsource’s headquarters in Melbourne.
They focused on enhancing the state’s digital capabilities by introducing new proprietary technology and driving more research, innovation, and growth in the state’s digital ecosystem.
Firstsource also plans to partner with Victorian education institutions to create an innovation lab focused on AI, engineering, robotics, and digital experimentation.
In 2023-24, India emerged as a major two-way trading partner for Victoria, with a total trade value of $3.6 billion.
Over the past five years, software and IT services have comprised 66 percent of Indian foreign direct investment (FDI), highlighting the key role that digital technology plays in the economic relationship between the two regions.
Previous News:
On September 16th, Firstsource Solutions announced a collaboration with Microsoft (NASDAQ:MSFT) to deliver advanced digital transformation services to clients globally.
By leveraging the capabilities of Microsoft Azure OpenAI Service, Firstsource aims to enhance its service offerings, driving innovation and efficiency across multiple industries.
As part of this initiative, Firstsource will utilise Azure OpenAI Service, Azure AI Search, and Azure AI-Language to deliver generative AI-powered solutions and business platforms that maximise the potential of enterprise data.
These solutions are designed to offer a multi-modal, multi-channel search experience, significantly improving effectiveness and personalization for businesses.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 17.2 percent from Rs. 1,529 crores in Q1 FY24 to Rs. 1,791 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 126 crores to Rs. 135 crores, indicating a rise of nearly 7.2 percent.
On a year-on-year basis, the consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 240 crores in Q1 FY24 to Rs. 270 crores in Q1 FY25, registering a growth of 12.5 percent.
For FY25, the management of Firstsource Solutions expects the company’s revenue to grow between 11.5 percent and 13.5 percent in constant currency terms, surpassing their initial guidance of 10 percent to 13 percent. They remain optimistic about achieving a US$1 billion revenue run rate by Q4 FY26.
Regarding operating margins, Firstsource expects its FY25 EBIT margin within the range of 11 percent to 12 percent, which takes into account the impact of upfront investments being made in the business.
After this investment phase, the company anticipates its EBIT margins to improve by 50 to 75 basis points annually over the medium term.
Stock Performance
The stock has delivered positive returns of nearly 87.3 percent of returns in one year, as well as around 65.4 percent returns in the last six months. So far in 2024, the shares of Firstsource Solutions have given positive returns of about 65.7 percent.
About the Company:
Incorporated in 2001, Firstsource Solutions Limited, an RP-Sanjiv Goenka Group company, is engaged in the business of providing customer management services like contact centre, transaction processing and debt collection services including revenue cycle management in the healthcare industry.
It is a specialised global business process services partner, providing solutions and services spanning the customer lifecycle across healthcare, banking and financial services, communications, media and technology, and other diverse industries.
Written by Shivani Singh
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