Industry

Firstsource scouts for fresh buys

Firstsource Solutions Ltd. (FSL), a RP-Sanjiv Goenka Group company engaged in customised business process management (BPM) services, is on the look out for fresh acquisitions in BPM and business analytics space.

“Inorganic growth is possible” company Chairman Sanjiv Goenka said. The group, which is present in power generation, retail, carbon black and publishing, expanded its footprints by entering the BPM field by acquiring FSL in October 2012. In 2014, FSL bought a stake into NanoBI, a Bengaluru-based analytic company.

Enquiries revealed that FSL, which is planning to shed further debt through refinancing and prepaying loans, will adopt a cautious attitude to debt while embarking on any acquisitions. It has cash reserves of $30 million, and has recently received a rating upgrade.

FSL is present in BFSI (banking, financial services and insurance), media, healthcare and telecommunications sectors. It ended 2014-15 with a 2.3 per cent contraction in its revenue (Rs.3,034.65 crore) and a 21.4 per cent increase in its post-tax profit (Rs.234.32 crore) . “Now the focus is more on bottom line growth rather than top-line growth,” Mr. Goenka said. While 49 per cent of revenue came from the U.S., 36 per cent was from the U.K. The balance was spread across the world, including India.

During the fourth quarter, the revenue increased 0.4 per cent (quarter-on-quarter). And, the net profit increased 8.3 per cent over the third quarter. BFSI has 47 centres with employee strength of 25,285.

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Printable version | Aug 10, 2020 2:20:59 PM | https://www.thehindu.com/business/Industry/firstsource-scouts-for-fresh-buys/article7173977.ece

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