The shares of the leading BPM services provider gained up to 7 percent after the company announced the strategic acquisition of Ascensos Limited worth GBP 42 million.
With a market capitalization of Rs 23,084.34 crore, the shares of Firstsource Solutions Ltd were trading at Rs 331.20 per share, increasing around 5.19 percent as compared to the previous closing price of Rs 314.85 apiece.
Reason for rise:-
Today the company shares have seen bullish movement after Firstsource Solutions Ltd signed a share purchase agreement with Ascensos Limited, UK to acquire a 100 percent stake in the company. This acquisition was valued at Rs GBP 42 million (Rs 46.89 Cr).
Firstsource Solutions has strategically expanded its capabilities by acquiring Ascensos, enhancing its presence in the retail vertical alongside existing strengths in BFS, CMT, healthcare, and energy. This acquisition bolsters nearshore delivery in South Africa, Romania, and Trinidad & Tobago, while also strengthening multi-lingual CX services and enabling service provision to Ascensos’ customer base from offshore locations in India and the Philippines.
Management comment:-
Dr. Sanjiv Goenka, Chairman – RPSG Group and Firstsource, commented, “This acquisition is aligned with the strategic capabilities Firstsource has been pursuing toward growth and expansion. We’re thrilled about the potential that Ascensos’s extensive retail knowledge, Firstsource’s advanced technology, and the RPSG Group’s deep expertise bring together. Retail and CPG BPO Market is a $28 billion market globally*. Ascensos opens a host of new growth opportunities for us that are underpinned by our strategy of delivering differentiated services built on deep industry knowledge and tailored technology. This collaboration will benefit our current clients and enable us to pursue new opportunities in the thriving retail sector.”
Financial performance:-
Looking forward the company’s financial condition, revenue ramped up by 17 percent from Rs 1,529 crore in Q1FY24 to Rs 1,791 crore in Q1FY25, during the same time frame net profit zoomed significantly by 7 percent from Rs 126 crore to Rs 135 crore.
Recent achievement:-
Firstsource Solutions secured significant contracts with top UK banks, utilities, and financial institutions for transformational programs, core customer support, and financial crime compliance. They also added a leading pension administrator for enhanced service coverage.
The company won a major deal with a SaaS provider for the freight industry in North America, and expanded services with a top US healthcare insurer, covering digital intake, claims, and provider data management.
Future outlook:-
The company is strategically focused on simplifying its organizational design and realigning the leadership team. It anticipates revenue growth of 11.5% to 13.5% in constant currency for FY25, with an EBIT margin projected between 11% and 12%. The plan includes validating core strengths and implementing a revamped go-to-market strategy, aiming for a $1 billion revenue run rate by Q4 FY26 while emphasizing margin expansion and long-term growth aspirations.
Company Snapshot:-
Firstsource Solutions Limited is engaged in providing information technology (IT) enabled business process management (BPM) services to banking and financial services, healthcare, communication media and technology, and other diverse industries.
Written by:- Abhishek Singh
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