Firstsource Solutions Share Price

Firstsource Solutions Limited

Firstsource Solutions Limited is a business process outsourcing (BPO) company headquartered in Mumbai, India. It provides customer management, transaction processing and healthcare services to clients globally. Firstsource operates over 25 centers worldwide and employs around 20000 people.

Key Facts

• Incorporated in 2001
  
• Part of RP-Sanjiv Goenka Group
  
• Chairman - Sanjiv Goenka
  
• CEO - Vipul Khanna
  
• Listed on NSE and BSE
  
• Market Cap - ₹6,130 crore
  

Services Offered

Firstsource provides the following services:

Customer Management

• Inbound/outbound customer care
  
• Technical helpdesk and support
  
• Sales and reservations
  
• Credit card processing
  
• Collections and recovery
  

Healthcare Solutions

Claims processing
Patient access services
Revenue cycle management
Data management and analytics

Transaction Processing

Data entry and processing
Forms processing
Payment processing
Claims administration
Policy administration

Key Clients and Industries Served

Firstsource serves over 100 global clients in:

• Banking, Financial Services and Insurance
  
• Telecommunications and Media
  
• Healthcare
  
• Technology and Consumer Electronics
  

Major clients include Target, Virgin Media, AT&T, British Telecom and Centene.

Global Centers and Workforce

Firstsource has over 25 delivery centers located in

• India
  
• United States
  
• United Kingdom
  
• Philippines
  

It employs around 20000 full time staff globally, including domain experts and management professionals.

Financial Performance

Quarterly Performance (Q2 FY25)

• Revenues: ₹19,254 million, representing a 25% increase year-over-year
  
• EBIT (Earnings Before Interest and Taxes): ₹2,081 million, which is 10.8% of revenues, showing a 27.3% increase year-over-year. The normalized EBIT margin stood at 11.1%
  
• Profit After Tax (PAT): ₹1,382 million, accounting for 7.2% of revenues, with a 9.3% increase year-over-year
  
• Diluted Earnings Per Share (EPS): ₹1.96
  

Half-Year Performance (H1 FY25)

• Revenues: ₹37,165 million, up 21.1% year-over-year
  
• EBIT: ₹4,051 million, or 10.9% of revenues, with an increase of 18.3% year-over-year
  
• PAT: ₹2,735 million, which is 7.4% of revenues, reflecting an 8.3% increase year-over-year
  
• Diluted EPS: ₹3.88
  

Additionally, as of January 2025, Firstsource Solutions reported:

• Net profit for the last quarter: ₹138.21 crore
  
• Revenue: ₹1,925.4 crore, showing approximately 7.5% sequential growth
  

Firstsource has also raised its revenue growth guidance for FY25 to a range of 19.5% to 20.5% in constant currency, which is significantly higher than previous estimates due to three large deal wins during the quarter. This positive impact is also reflected on the Firstsource Solutions share price.

History and Evolution

Early Years

Firstsource started in 2001 as ICICI OneSource, an outsourcing subsidiary of ICICI Bank. It later changed its name to Firstsource Solutions.

Expansion

Between 2002-2008, Firstsource expanded globally through several acquisitions in India, US and UK.

Healthcare Foray

In 2005, the acquisition of MedAssist positioned Firstsource as a leader in the healthcare BPO sector.

Recent Developments

Recent developments at Firstsource Solutions highlight its strategic focus on digital transformation, innovation, and business expansion.

1. Launch of Firstsource relAI (July 2024)

Introduced Firstsource relAI, an AI-driven platform designed to accelerate digital transformation for businesses. It leverages generative AI and advanced analytics to enhance operational efficiency and innovation across industries.

2. Partnership with Microsoft (September 2024)

Collaborated with Microsoft to deliver AI-powered digital transformation services using Azure OpenAI Service. This partnership aims to enhance data accessibility, personalization, and operational efficiency for clients globally.

3. Acquisition of Quintessence Business Solutions (May 2024)

Acquired Quintessence, a leader in Revenue Cycle Management (RCM) services, to strengthen its healthcare offerings. This acquisition expands Firstsource’s capabilities in AI-enabled RCM solutions and enhances its offshore delivery capacity.

4. Recognition in CX Services Transformation (March 2024)

Identified as a "Leader" and "Innovator" in NelsonHall's CX Services Transformation NEAT 2024 report, highlighting its expertise in customer experience and advanced technology implementation.

5. Environmental, Social, and Governance (ESG) Report (October 2024)

Released the FY24 ESG report showcasing progress in sustainability, diversity, and governance. Key achievements include significant reductions in emissions and strong female workforce representation.

6. Ambitious Growth Targets

Aims to achieve a $1 billion revenue run rate by Q4 FY26, with annual margin expansion of 50-75 basis points starting FY25. The company raised its FY25 revenue growth guidance to 11.5–13.5%.

These initiatives reflect Firstsource’s commitment to innovation, sustainability, and strengthening its market position across industries.

Management Team

• Vipul Khanna, MD and CEO
  
• Dinesh Jain, President and CFO
  
• Arjun Mitra, Chief Strategy Officer
  
• Pooja Nambiar, CHRO
  

Competitive Analysis

Major competitors of Firstsource include

• WNS Global Services
  
• Genpact
  
• Wipro BPO
  
• Exlservice Holdings
  
• Conduent
  

Firstsource competes on service quality, domain expertise, operational excellence and customer relationships.

SWOT Analysis

Strengths

• Deep domain expertise
  
• Long-standing client relationships
  
• Global delivery model
  
• Advanced technology infrastructure
  

Weaknesses

• High customer concentration in some verticals
  
• Brand awareness compared to larger peers
  

Opportunities

• Increasing outsourcing demand
  
• Scope for higher value services
  
• Automation and analytics adoption
  

Threats

• Competition from multinational BPO firms
  
• Talent attraction and retention pressures
  
• Data security and privacy concerns
  

Growth Drivers

Key factors driving future growth for Firstsource

• Increasing outsourcing by healthcare providers
  
• Focus on enhancing digital capabilities
  
• Expansion in Europe and Asia-Pacific region
  
• Cross-selling services to existing clients
  
• New client acquisitions in under-penetrated sectors
  

Stock Performance and Valuations

Firstsource Solutions stock has generated high returns for investors over the past 5 years.

• 5-Year Price CAGR -25%
  
• Current P/E Ratio -19x
  
• Market Cap - ₹6,130 crore
  

The stock trades at a slight premium to larger peers, justified by its strong growth prospects.

Future Outlook

Firstsource is poised for strong growth, driven by its healthcare business, new deal wins and geographic expansion. Its investments in automation and analytics provide a competitive edge. The company is a promising bet for investors as a pure play BPO stock.