Firstsource Solutions has posted a 16.5 per cent rise in net profit at ₹48.31 crore in a traditionally weak third quarter ended December 31, on reduced costs and increased business from North America.
The Business Process Management services provider controlled by RP Sanjiv Goenka Group had posted a net profit of ₹41.5 crore during the same quarter a year ago.
“There were many positive surprises during the quarter. The rationalisation on the client front, which started six months back, enabled us to reverse some of the losses during the quarter,” said Rajesh Subramaniam, Managing Director and Chief Executive Officer at Firstsource Solutions.
As of December 31, Firstsource derived 47 per cent of revenues from the US, 36 per cent from the UK and 17 per cent from Rest of World, including India.
“We are seeing recovery in the U.S. markets, while the U.K. markets are also growing,” Subramaniam said.
During the quarter under review, the company’s revenues rose 12.1 per cent to ₹799.8 crore from ₹713.2 crore recorded during the comparable period of previous financial year.
During the quarter, Firstsource reduced 444 employees taking its total headcount to 29,946 as of December 31. “Rationalisation on the client front also resulted in employee reduction,” he added.
Going forward, the company expects a “very strong” fourth quarter and FY15 as the last quarter is traditionally a strong quarter and due to improvement in businesses.
The company, which has set up a delivery centre in Cebu, the Philippines, also plans to open another centre in the US by April or May this year.