Firstsource Solutions Declares Positive Financial Results for September 2024 Quarter

Despite facing some challenges, Firstsource Solutions, a leading BPO/ITeS company in the largecap industry, has recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO is 'Buy', indicating a positive outlook for the company. In the last quarter, Firstsource Solutions has shown a flat financial performance with a score of -1, compared to 3 in the previous quarter. However, there are several factors that are working in the company's favor, as seen in the September 2024 financials. Firstly, the company's net sales have been consistently growing in the last five quarters, with the highest recorded at Rs 1,925.38 crore. This trend is expected to continue in the near term, indicating a positive sales outlook for the company. Similarly, the operating profit (PBDIT) has also been on a steady rise in the last five quarters, with the highest recorded at Rs 287.27 crore. This shows that the company's operations are becoming more efficient and profitable. Moreover, the profit before tax (PBT) and profit after tax (PAT) have also shown a positive trend, with the highest recorded at Rs 173.76 crore and Rs 138.22 crore respectively. This indicates that the company is creating higher earnings for its shareholders. In terms of liquidity, Firstsource Solutions has also shown improvement, with the highest cash and cash equivalents recorded at Rs 215.88 crore in the last six half yearly periods. However, there are some areas that need improvement, as seen in the September 2024 financials. The operating profit to interest ratio is at its lowest in the last five quarters, indicating a decrease in the company's ability to manage interest payments. Additionally, the interest cost has also risen, signifying increased borrowings. Furthermore, the company's operating cash flow has been falling in the last three years, and the debt-equity ratio is at its highest in the last five half yearly periods. This suggests that the company is relying more on borrowings to fund its operations, which may lead to a stressed liquidity situation. In conclusion, despite facing some challenges, Firstsource Solutions has shown positive growth in its financials, with a 'Buy' stock call by MarketsMOJO. The company's consistent growth in net sales, operating profit, and profitability, along with improving liquidity, make it a promising player in the BPO/ITeS industry.