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Last Updated : May 05, 2017 11:24 AM IST | Source: CNBC-TV18

Firstsource Q4 profit seen down 1% but operational performance may be positive

FY18 growth outlook & margin guidance will be closely watched.

 
 
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Firstsource Solutions' fourth quarter profit is seen falling 1 percent sequentially to Rs 69 crore and revenue may decline to Rs 885 crore from Rs 885.4 crore.

According to average of estimates of analysts polled by CNBC-TV18, EBIT (earnings before interest and tax) may increase to Rs 95 crore (from Rs 91.5 crore) and margin is expected to expand to 10.7 percent (from 10.3 percent) on sequential basis.

During the quarter, the company maintained its revenue growth guidance of 10-12 percent for FY17 but it guided for a slightly lower margin profile due to underperformance of its mortgage business. It has revised its margin improvement guidance of 40-50 bps in FY17 against earlier 70-90 bps owing to currency headwind and weakness in mortgage business.

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The company signed a new 10-year contract with Sky and invested 12 million pound in Q3. This will contribute around USD 35-40 million incremental revenues in FY18.

The management expects ISGN to be on track and contribute USD 30-35 million revenues by FY17.

FY18 growth outlook & margin guidance will be closely watched.

Company's debt repayment is on track. At the current repayment rate of USD 11.25 million quarterly run-rate, company would be debt free by FY19.
First Published on May 5, 2017 11:24 am
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