Firstsource Solutions Ltd - Stock Valuation and Financial Performance

BSE: 532809 | NSE: FSL | BPO/ITeS | Small Cap

Firstsource Solution Share Price

204.55 0.10 0.05%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Firstsource Solution

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Firstsource Solutions stock performance -

mw4me loader
P/E Ratio (SA):
50.35
Market Cap:
14,394.3 Cr.
52-wk low:
111.3
52-wk high:
221.4

Is Firstsource Solutions Ltd an attractive stock to invest in?

1. Is Firstsource Solutions Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Firstsource Solutions Ltd is a average quality company.

2. Is Firstsource Solutions Ltd undervalued or overvalued?

The key valuation ratios of Firstsource Solutions Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Firstsource Solutions Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Firstsource Solutions Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Firstsource Solution:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.6%10.2%8%9.2%8.9%7.9%8.6%17.6%17.8%11.1%-
Value Creation
Index
-0.2-0.3-0.4-0.4-0.4-0.4-0.40.30.3-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9549148759408617689401,3251,5921,3761,475
Sales YoY Gr.--4.2%-4.3%7.5%-8.4%-10.8%22.4%40.9%20.2%-13.6%-
Adj EPS 2.22.42.22.72.82.52.65.25.63.54.1
YoY Gr.-11.1%-9.6%25.4%1.1%-8.4%1.2%105.5%5.9%-36.2%-
BVPS (₹) 20.824.426.229.230.932.829.630.832.632.136.4
Adj Net
Profit
142160146186189174177365387247286
Cash Flow from Ops. -17.450.676.978.341.1222388418416270-
Debt/CF from Ops. -11.24.62.52.40.40.10000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.2%9.8%13.5%-13.6%
Adj EPS 5.6%5.2%11.6%-36.2%
BVPS4.9%0.8%2.8%-1.3%
Share Price 22.5% 31% 22.5% 79.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
10.910.78.69.89.27.98.217.217.210.711.8
Op. Profit
Mgn %
20.622.822.724.427.224.228.53733.427.527.9
Net Profit
Mgn %
14.917.516.719.72222.618.827.524.31819.4
Debt to
Equity
0.10.10.10.1000000-
Working Cap
Days
137204233238304353265192179214109
Cash Conv.
Cycle
306710011717821514011010813784

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 13.54%

Net Profit is growing at healthy rate in last 3 years 11.55%

Return on Equity has declined versus last 3 years average to 11.80%

Sales growth is not so good in last 4 quarters at 8.93%

Latest Financials - Firstsource Solutions Ltd.

Standalone Consolidated
TTM EPS (₹) 4.1 7.4
TTM Sales (₹ Cr.) 1,475 6,220
BVPS (₹.) 36.4 54.1
Reserves (₹ Cr.) 1,860 3,101
P/BV 5.61 3.78
PE 50.35 27.55
From the Market
52 Week Low / High (₹) 111.25 / 221.40
All Time Low / High (₹) 5.67 / 242.65
Market Cap (₹ Cr.) 14,394
Equity (₹ Cr.) 704.1
Face Value (₹) 10
Industry PE 66.5

Management X-Ray of Firstsource Solution:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Firstsource Solution

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales9549148759408617689401,3251,5921,376
Operating Expenses 7827106767136275836728351,0631,000
Manufacturing Costs12713713012810567100104127144
Material Costs0000000000
Employee Cost 461438424458415383481631800712
Other Costs 19413612312710713392100136143
Operating Profit 172204198228234185268490529376
Operating Profit Margin (%) 18.0%22.3%22.7%24.2%27.2%24.1%28.5%37.0%33.2%27.3%
Other Income 33231817136331313339
Interest 1821977216152015
Depreciation 53463219222471808889
Exceptional Items 0000000000
Profit Before Tax 134160176219219223212425453311
Tax 0-42430272430596663
Profit After Tax 134164151188192199182367388248
PAT Margin (%) 14.1%17.9%17.3%20.0%22.3%25.9%19.4%27.7%24.3%18.1%
Adjusted EPS (₹)2.02.52.32.82.82.92.65.35.63.6
Dividend Payout Ratio (%)0%0%0%0%54%69%95%57%63%98%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,3801,6281,7651,9872,1232,2672,0532,1442,2682,239
Share Capital 660666673681687691694696697697
Reserves 7209621,0911,3061,4361,5761,3591,4481,5711,542
Minority Interest0000000000
Debt188223174130833944
Long Term Debt12212211668833944
Short Term Debt661015862000000
Trade Payables31252434282931394753
Others Liabilities 13041-85-42-126-1573116915043
Total Liabilities 1,7281,9171,8782,1082,0322,1422,1182,3612,4692,339

Fixed Assets

Gross Block517534431452326308513578636600
Accumulated Depreciation431476392396270237265286323392
Net Fixed Assets865839555672249291313208
CWIP 0012000003
Investments 1,1731,2461,2681,3451,2191,3161,1991,2871,3361,288
Inventories0000000000
Trade Receivables185234320372565433374535537637
Cash Equivalents 29263616141346162621
Others Assets256353214319179309251232257180
Total Assets 1,7281,9171,8782,1082,0322,1422,1182,3612,4692,339

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -1751777841222388418416270
PBT 134160176219219223212425453311
Adjustment 76117133-7266511011686
Changes in Working Capital -189-194-70-107-11217143-54-54-68
Tax Paid -39-32-42-37-59-45-33-64-99-59
Cash Flow From Investing Activity 0-51-21-104124-10677-146-5047
Capex -110-15-31-20-42-33-66-35-21
Net Investments 1-64-6-74143-64125-77-3364
Others 031000-15-4184
Cash Flow From Financing Activity 20-3-456-166-117-433-307-356-319
Net Proceeds from Shares 31112161014-1800
Net Proceeds from Borrowing 000-16-108-5-510-5-3
Interest Paid -9-15-9-7-7-2-16-15-20-15
Dividend Paid 00000-125-376-204-238-238
Others 271-4812-620-35-106-93-62
Net Cash Flow 3-310-20-1-232-359-2
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)10.3310.918.9210.059.349.078.4317.4717.5711.02
ROCE (%)10.4710.529.6710.8710.4110.1110.4520.720.9514.04
Asset Turnover Ratio0.580.50.460.470.420.370.440.590.660.57
PAT to CFO Conversion(x)-0.130.310.510.410.211.122.131.141.071.09
Working Capital Days
Receivable Days5184115134198237157125123156
Inventory Days0000000000
Payable Days0000000000

Firstsource Solutions Ltd Stock News

Firstsource Solutions Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Firstsource Solution on 12-Apr-2024 10:20 is ₹204.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of Firstsource Solution stood at ₹14,394.3.
The latest P/E ratio of Firstsource Solution as of 12-Apr-2024 10:20 is 50.35.
The latest P/B ratio of Firstsource Solution as of 12-Apr-2024 10:20 is 5.61.
The 52-week high of Firstsource Solution is ₹221.4 and the 52-week low is ₹111.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Firstsource Solution is ₹1,475 ( Cr.) .

About Firstsource Solutions Ltd

Firstsource Solutions Limited, incorporated in 2001, is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, the company provides bespoke services and solutions to its customers across Banking and Financial Services, Healthcare, Communications, Media and Technology and other diverse industries.

The Company is a public limited company incorporated and domiciled in India having registered office at Mumbai, Maharashtra, India. The Company is listed on the Bombay Stock Exchange and National Stock Exchange in India.

Business area of the company

The company is engaged in the business of providing customer management services like contact center, transaction processing and debt collection services including revenue cycle management in the healthcare industry.

Business verticals

  • Retail and SME banking (customer experience, transaction processing)
  • Complaints and remediation (complaints handling, fraud management)
  • Commercial finance (invoice factoring, risk management)
  • Mortgages (loan processing, servicing, title and valuations)
  • Collections and Recoveries (credit card, auto and student loan collections)
  • FinTech

Awards and Accolades

2016-17

  • Welsh Contact Centre Awards, 2017: Won Award in three categories including ‘Diverse Workplace’, ‘Trainer of the Year’ and ‘Special Industry Champion’
  • Global HR Excellence Awards, 2017: Won in ‘Innovation in Retention Strategy’ category. Firstsource was recognised for its’ employee retention practices and policies
  • European Contact Centre & Customer Service Awards, 2016: Honoured with the Bronze Award in the ‘Customer Service Team of the Year’ in partnership with its client giffgaff
  • U.K. Customer Experience Awards, 2016: Won in the ‘Technology & Telecoms’ category in partnership with its client NOW TV and received the silver award in the ‘Engaging Customers Online’ category in partnership with its client giffgaff
  • Asia’s Best Employer Brand Awards, 2016: Won the ‘Best Employer Brand’ Award for its excellence in building the Employer Brand as an Employer of Choice
  • 100 Best Companies for Women in India: Recognised in the 100 Best Companies for ‘Women in India’ by the 2016 Working Mother & AVTAR Best Companies
  • Business in the Community Awards: Honoured as ‘Employer of Choice’ at the Business in The Community Northern Ireland Awards in Belfast
  • Best Adversity Management Stories of Asia, 2016: Secured the 1st Runner-up position at the ‘Best Adversity Management Stories of Asia’ 2016 Awards for its response to the Chennai floods in Nov-Dec 2015

2018-19

  • European Contact Centre and Customer Service Awards (ECCCSA) 2018: Awarded Bronze for ‘Best Outsourcing Partnership’ for collaboration with Lloyds Banking Group
  • UK Complaints Handling (UKCH) Awards 2019: Won the ‘Customer Insight Strategy’ Award and was adjudged the ‘Overall Winner’ at the UK Complaints Handling (UKCH) Awards 2019, with NOWTV
  • North East Contact Centre Awards (NECCA): Awarded the ‘Best Outsourcing Partnership 2018’ with TSB, reinstating its strong partnership ethos
  • Wales HR Award: Recognised for the ‘Best HR Team’ with outstanding individuals and teams, learning, and people management practices across Wales in the last 12 months
  • Welsh Contact Centre Awards 2019: Won two awards: Gold for ‘People Engagement’ and Silver for the ‘Best Support Manager of the Year’
  • Nasscom BPM Summit 2018: Awarded the coveted ‘Customer Service Excellence Award’ in the Process Efficiency category

2019-20

  • ‘Best Complaint Handling’ and ‘Best Complaint Handling Team of the Year – Financial Services’ at the UK Complaints Handling (UKCH) Awards 2020
  • ‘Technology-Enabled Project of the Year’ and ‘Customer Experience Provider of the Year’ at the Global Sourcing Association (GSA) UK Awards 2019
  • Winner of ‘Best Use of Technology in HR’ at Employee Engagement Summit, Mumbai, India
  • Gold Award for ‘Best Use of Customer Insight’ at the UK Customer Experience Award (CXA ’19)
  • ‘Outsourced Contact Centre of the Year’ recognition at the Contact Centre Network Northern Ireland (CCNNI) Awards 2019
  • Winner in ‘Creating an Impact: Business Skills’ category at the India Innovation Awards at Perspectives 2019
  • ‘Best Outsourcing Partnership’ at the North East Contact Centre Awards 2019
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