Firstsource Solutions Q1 net profit more than doubles

BPO service provider Firstsource Solutions' first quarter net profit more than doubled to Rs28.98 crore, on a strong business pipeline and cost optimisation initiatives, while it sees a good build up of the new business pipeline.

The company posted a net profit of Rs28.98 crore on a consolidated basis for the quarter ended 30 June 2012, compared with Rs10.65 crore recorded during the same period a year ago, Firstsource said in a statement.

The firm's revenue from operations rose 29.1 per cent to Rs675.17 crore for the period under review from Rs523.08 crore recorded during the same period of previous financial year. The earnings were reported under Indian GAAP.

''Our financial performance is back on track and we are on a growth trajectory. The quarter has seen strong revenue and earnings growth coupled with significant savings achieved from our cost optimisation initiatives.

As a company, we are focused on sustained profitable growth in our key market segments. We are also encouraged by a good build up of the new business pipeline across the company and are well positioned in number of client situations,'' Rajesh Subramaniam, managing director and CEO Rajesh Subramaniam said.

Firstsource, which offers services to healthcare, telecom, media and banking and financial services industries, operating EBIT (earnings before interest and tax) rose 59.9 per cent to of Rs33.4 crore during the quarter.