Firstsource Solutions Limited · NSE:FSL
Firstsource Solutions — Q3 FY2008 Earnings Presentation
12 slides from Firstsource Solutions's earnings presentation, Jan 29, 2008
Slide 1: Firstsource Solutions Limited Q3 FY 2007-08 Earnings Update
Firstsource Solutions Limited Q3 FY 2007-08 Earnings Update
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially form those in such forward-looking statements. The risks and uncertainties
Slide 3: Financial Summary Q3 FY2008
Financial Summary Q3 FY2008 (IN INR Million) Q3 FY Q2 FY Q3 FY • Up 71.6% Y-o-Y 2007 2008 2008 TOTAL INCOME • Up 29.0% Q-o-Q 3,825 Actuals Actuals Actuals 4,000 2,965 Income from services 2,082 2,587 3,589 3,000 2,229 Rs.Mn Other operating Income 63 218 150 2,000 Other Income 84 160 86 1,000 Total I
Slide 4: Financial Summary YTD FY2008
Financial Summary YTD FY2008 (IN INR Million) YTD FY 2007 YTD FY 2008 TOTAL INCOME • Up 70.5% Y-o-Y Nine months Nine months 9,600 10,000 Income from services 5,485 8,714 7,500 Other operating Income 52 562 5,629 Rs.Mn Other Income 93 324 5,000 Total Income 5,629 9,600 2,500 Personnel & Operating Exp
Slide 5: Highlights (1 of 7): Performance YTD FY 2008
Highlights (1 of 7) Performance YTD FY 2008 (Nine months) In INR million YTD FY07 YTD FY08 Growth (%) Revenue from Operations 5,537 9,276 67.5% Total Income 5,629 9,600 70.6% EBITDA 1,170 2,075 77.3% EBITDA (% of Total Income) 20.8% 21.6% PAT 623 1,105 77.4% PAT (% of Total Income) 11.1% 11.5% EBIT
Slide 6: Highlights (2 of 7): Performance Q3 FY 2008
Highlights (2 of 7) Performance Q3 FY 2008 • Q1 and Q2 PAT had come in at about Rs. 450 million at a net income margin exceeding 15% (against stated target of 11%-13%) • Normalized for the following, the PAT would be Rs. 300 million: Lower Grant Income than Q2 and Q1 Rs. 90 million Fall off of forex
Slide 7: Highlights (3 of 7): Grant Income
Highlights (3 of 7) Performance Q3 FY 2008 • Grant Income - Grant from INI is to defray initial setup / training / stabilization cost for Northern Ireland center - Grant is paid based on predetermined milestones - Overall grant income expected to be Rs. 550 million for FY2008, of which 66% has been
Slide 8: Highlights (4 of 7): Collections Underperformance
Highlights (4 of 7) Performance Q3 FY 2008 • Collections Underperformance - Sub prime crisis has led to increase in defaults on mortgages as well as credit cards and other financial assets - Also impacted liquidation rates on existing portfolios which we collect - This has resulted in lower collecte
Slide 9: Highlights (5 of 7): FCCB Issue and Employee Strength
Highlights (5 of 7) • $275 million FCCB Issue - Issue was successfully launched and closed on December 03, 2007 - Zero Coupon, 6.75% YTM and 35% premium • Reference price of Rs. 68.37 and conversion price of Rs. 92.29 • Total employee strength of 17,090, up by 500 from end Sep-07 - India based - 13,
Slide 10: Highlights (6 of 7): Client concentration and revenue mix
Highlights (6 of 7) Client concentration Revenues by vertical Telecom + Revenue from top five clients Media 34.0% 60% 51.4% 40.2% Healthcare 33.0% 9.1% 40% BFSI 51.8% Others 20% 5.1% 0% FY2007 FY2007 YTD FY2008 Q3 FY2008 Telecom + Healthcare Note: Largest client contributed 13.0% of income from serv
Slide 11: Highlights (7 of 7): Outlook for Q4
Highlights (7 of 7) Outlook for Q4 • Expected changes from Q3 - Collections performance should improve on account of tax seasonality - Salt Lake centre to complete stabilization phase - One time charges to fall off • New Business – Two major deals signed with annual contract value of $25- 30 million
Slide 12: Thank You
THANK YOU Firstsource (NSE: FSL, BSE: 532809, Reuters: FISO.BO, Bloomberg: FSOL@IN) is among India’s leading BPO (business process outsourcing) service providers. Firstsource provides customized business process management to global leaders in the Banking & Financial Services, Telecom & Media and He
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