Firstsource Solutions Reports Stable Q3 FY24-25 Results Amid Rising Debt Concerns
Firstsource Solutions announced its financial results for Q3 FY24-25, showcasing stable performance with net sales of Rs 2,102.38 crore and a record operating profit of Rs 317.66 crore. However, challenges include a declining operating profit to interest ratio, increased debt-equity ratio, and a slower debtors turnover ratio.
Firstsource Solutions, a prominent player in the BPO/ITeS sector, recently announced its financial results for the quarter ending December 2024. The company reported a stable financial performance for Q3 FY24-25, with notable achievements in various metrics. The net sales reached Rs 2,102.38 crore, marking a significant growth compared to the average of the previous four quarters. This positive trend is mirrored in the operating profit, which also hit a record high of Rs 317.66 crore.Despite these strengths, Firstsource Solutions faces challenges. The operating profit to interest ratio has reached its lowest point in five quarters, indicating potential difficulties in managing interest obligations. Additionally, the debt-equity ratio has risen, suggesting an increase in borrowings to support operations, which may impact liquidity. The company also reported a decline in its debtors turnover ratio, reflecting a slower pace in settling receivables.
Overall, Firstsource Solutions has undergone an adjustment in its evaluation, reflecting the mixed performance across various financial metrics.
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