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Firstsource Solutions Ltd. Stock Analysis

Mid Cap
Evaluated by 2800 users | BSE: 532809 | NSE: FSL |
BPO/ITeS
Firstsource Solutions incorporated in 2001; is a global provider of business process management services. The company offers wide range services in area of banking and financial services, telecommunications and media and the healthcare industry.The company has over 18,500...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Firstsource Solutions Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 3.33%2.71%7.45%10.61%10.16%7.97%9.17%8.92%7.88%8.62%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 703754911954914875940861768940
Y-o-Y Gr. Rt.-7.3%20.7%4.8%-4.2%-4.3%7.5%-8.4%-10.8%22.4%
Adjusted EPS (Rs.) 1.320.291.372.162.42.172.722.752.522.55
Y-o-Y Gr. Rt.--78%372.4%57.7%11.1%-9.6%25.4%1.1%-8.4%1.2%
Book Value per Share (Rs.) 21.3220.4118.6620.8424.426.2129.1730.9232.829.59
Adjusted Net Profit 5712.690.4142160146186189174177
Net Op. Cash Flow (Rs. Cr.) 78.591.6330-17.450.676.978.341.1222388
Debt to Cash Flow from Ops 17.0113.060.36-11.174.642.512.370.40.050.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Firstsource Solutions Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.3%0.6%-022.4%
Adjusted EPS 7.6%1.2%-2.1%1.2%
Book Value per Share 3.73.90.5-9.8
Share Price 27.9% 12.1% 22.8% 85.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 5.621.48.5610.9110.658.599.849.157.888.15
Operating Profit Margin (%) 14.178.6514.8520.622.7822.6824.4327.224.1828.46
Net Profit Margin (%) 8.11.679.9214.9317.5316.719.7421.9622.6418.84
Debt to Equity 1.451.360.10.140.140.110.090.0100
Working Capital Days 533350139137204233238304353265
Cash Conversion Cycle 294222296699116177215140
Entity Percentage Holding
Promoters 53.82%
Institutions 21.13%
Non-Institutions 25.04%
Others 0.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Firstsource Solutions Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Firstsource Solutions Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Firstsource Solutions Ltd.'s performance infers:

Firstsource Solutions Ltd. earnings have grown by 1.2%, whereas share price has appreciated 12.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Firstsource Solutions Ltd. share prices over the last 10 years. Here is what we found out:

Firstsource Solutions Ltd. share price has appreciated 13.2% annually over the past ten years.

Firstsource Solutions incorporated in 2001; is a global provider of business process management services. The company offers wide range services in area of banking and financial services, telecommunications and media and the healthcare industry.The company has over 18,500 employees working across its 36 centres located at India, US, UK, Read More

Firstsource Solutions incorporated in 2001; is a global provider of business process management services. The company offers wide range services in area of banking and financial services, telecommunications and media and the healthcare industry.The company has over 18,500 employees working across its 36 centres located at India, US, UK, Argentina and the Philippines.

Business area

Services- Firstsource provides services throughout the customer lifecycle that includes customer acquisition, customer care, billing and collections, transaction processing and business research and analytics.

Industries

Banking and Financial Services- Under this Firstsource provides customized, flexible and cost effective BPO solutions in area of retail banking, insurance, credit cards and mortgages.

Telecommunications and Media- Under this the company offers aids for improving their business processes, developing and implementing customer acquisition and retention programs.

Healthcare- Under this the company offer services such as health claims processing, claims adjudication and mailroom services.

Milestones & Awards

Firstsource was winners in the “Best Project in services & transaction” category in the annual Six Sigma IQPC Excellence Awards held in London, April 2008

Firstsource has been ranked amongst top 10 ITES-BPO companies in India by NASSCOM.

Company won 8 Six Sigma awards from IQPC (International Quality and Productivity Center) in 2007-08.

2010

- Firstsource Solutions has inked a five - year outsourcing agreement with private sector lender Axis Bank.

2011

- Golden Peacock Award
- Asia’s Best Employer Brand Award 2011
- Ranked No. 1 in extended business office services for KLAS’ 2010 Top 20 Best in KLAS Awards: Software and Professional.
- Firstsource Recognized with Top Honors at the International Quality and Productivity Council (IQPC) Conference.

2012

- The European Call Centre and Customer Service Awards 2012 - Outsourcer of the Year.
- Firstsource bags Aaj Tak Care Awards for creating livelihood in the rural sector.
- Firstsource Wins Marketing Magazines’s Contact Centre Agency of the Year Award. - Firstsource Partners with Digi-EXPress® to Deliver Cloud-Automated Solutions for Publishers’ Intellectual Property Rights, Content Licensing and Contracts.

2013
- National Outsourcing Association Awards
- UTV Business Eye Award
- European Call Centre & Customer Service Awards
- Innovative Employer Award 2013 in Northern Ireland
- Firstsource in Top 25 of Global Outsourcing100® Rankings
- Outsourcing Excellence Award 2013
- Welsh Contact Center Award

2014
- Outsourcing Excellence Award 2014
- Firstsource has been accredited with Investors In People (IIP) Silver standard for its UK operations
 - Firstsource’s First Customer Intelligence Wins 2013 Best Practice Award"

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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