Firstsource Solutions
Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally. The last earnings update was 78 days ago. More info.
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532809 Share Price and Events
7 Day Returns
1 Year Returns
532809 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Firstsource Solutions (532809) | -1.8% | 7.2% | 2.6% | -15.6% | 30.1% | 50% |
| IN IT | 1% | 5.1% | 9.2% | 19.1% | 49.1% | 81.5% |
| IN Market | -1.2% | 1.4% | 4.8% | -2.5% | 40% | 69.9% |
1 Year Return vs Industry and Market
- 532809 underperformed the IT industry which returned 19.1% over the past year.
- 532809 underperformed the Market in India which returned -2.5% over the past year.
532809 Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Firstsource Solutions
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Firstsource Solutions.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 5 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 17.2% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.06 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 35%) (18.63%)) |
1.123 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.12 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.123 * 8.6%) |
17.21% |
Discounted Cash Flow Calculation for BSE:532809 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Firstsource Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 17.21%) |
|
|---|---|---|---|
| 2019 | 3,752.00 | Analyst x3 | 3,201.11 |
| 2020 | 4,112.00 | Analyst x3 | 2,993.14 |
| 2021 | 4,395.00 | Analyst x3 | 2,729.42 |
| 2022 | 4,699.37 | Est @ 6.93% | 2,489.94 |
| 2023 | 5,033.63 | Est @ 7.11% | 2,275.45 |
| 2024 | 5,398.26 | Est @ 7.24% | 2,081.99 |
| 2025 | 5,794.27 | Est @ 7.34% | 1,906.60 |
| 2026 | 6,223.05 | Est @ 7.4% | 1,747.03 |
| 2027 | 6,686.35 | Est @ 7.45% | 1,601.49 |
| 2028 | 7,186.26 | Est @ 7.48% | 1,468.51 |
| Present value of next 10 years cash flows | ₹22,494.69 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹7,186.26 × (1 + 7.55%) ÷ (17.21% – 7.55%) |
₹80,012.95 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹80,012.95 ÷ (1 + 17.21%)10 |
₹16,350.59 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹22,494.69 + ₹16,350.59 |
₹38,845.28 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹38,845.28 / 691.09 |
₹56.21 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹56.21 |
| Current discount | Discount to share price of
₹50.55
= -1 x (₹50.55 - ₹56.21) / ₹56.21 |
10.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Firstsource Solutions's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Firstsource Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Firstsource Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Firstsource Solutions's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in INR | ₹5.42 |
| BSE:532809 Share Price ** | BSE (2019-04-23) in INR | ₹50.55 |
| India IT Industry PE Ratio | Median Figure of 84 Publicly-Listed IT Companies | 16.21x |
| India Market PE Ratio | Median Figure of 2,738 Publicly-Listed Companies | 16.18x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Firstsource Solutions.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:532809 Share Price ÷ EPS (both in INR) = 50.55 ÷ 5.42 |
9.33x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Firstsource Solutions is good value based on earnings compared to the IN IT industry average.
- Firstsource Solutions is good value based on earnings compared to the India market.
Price based on expected Growth
Does
Firstsource Solutions's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 9.33x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts |
5.9%per year |
| India IT Industry PEG Ratio | Median Figure of 21 Publicly-Listed IT Companies | 1.32x |
| India Market PEG Ratio | Median Figure of 585 Publicly-Listed Companies | 1.32x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 9.33x ÷ 5.9% |
1.58x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Firstsource Solutions is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Firstsource Solutions's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in INR | ₹36.40 |
| BSE:532809 Share Price * | BSE (2019-04-23) in INR | ₹50.55 |
| India IT Industry PB Ratio | Median Figure of 108 Publicly-Listed IT Companies | 1.35x |
| India Market PB Ratio | Median Figure of 3,629 Publicly-Listed Companies | 1.1x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:532809 Share Price ÷ Book Value per Share (both in INR) = 50.55 ÷ 36.40 |
1.39x |
* Primary Listing of Firstsource Solutions.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Firstsource Solutions is overvalued based on assets compared to the IN IT industry average.
Value checks
We assess Firstsource Solutions's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Firstsource Solutions has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
532809 Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Firstsource Solutions's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
- Firstsource Solutions's earnings growth is positive but not above the India market average.
- Firstsource Solutions's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:532809 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts | 5.9% |
| BSE:532809 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts | 6.9% |
| India IT Industry Earnings Growth Rate | Market Cap Weighted Average | 9.5% |
| India IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9.4% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 18.3% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 11.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | ||||
| 2021-03-31 | 43,998 | 5,115 | 4,255 | 2 |
| 2020-03-31 | 41,296 | 4,791 | 3,960 | 3 |
| 2019-03-31 | 38,612 | 4,345 | 3,785 | 2 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 37,564 | 3,724 | |
| 2018-09-30 | 36,584 | 3,738 | |
| 2018-06-30 | 35,766 | 3,497 | |
| 2018-03-31 | 35,352 | 3,151 | 3,265 |
| 2017-12-31 | 35,303 | 2,991 | |
| 2017-09-30 | 35,284 | 2,695 | |
| 2017-06-30 | 35,398 | 2,720 | |
| 2017-03-31 | 35,556 | 1,998 | 2,800 |
| 2016-12-31 | 35,458 | 3,006 | |
| 2016-09-30 | 34,790 | 2,981 | |
| 2016-06-30 | 33,824 | 2,855 | |
| 2016-03-31 | 32,173 | 2,971 | 2,605 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
All data from Firstsource Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | 7.00 | 7.00 | 7.00 | 1.00 |
| 2021-03-31 | 6.13 | 6.50 | 5.70 | 4.00 |
| 2020-03-31 | 5.74 | 6.00 | 5.60 | 5.00 |
| 2019-03-31 | 5.40 | 5.50 | 5.20 | 5.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2018-12-31 | 5.42 |
| 2018-09-30 | 5.43 |
| 2018-06-30 | 5.11 |
| 2018-03-31 | 4.78 |
| 2017-12-31 | 4.39 |
| 2017-09-30 | 3.97 |
| 2017-06-30 | 4.01 |
| 2017-03-31 | 4.14 |
| 2016-12-31 | 4.44 |
| 2016-09-30 | 4.41 |
| 2016-06-30 | 4.26 |
| 2016-03-31 | 3.89 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Firstsource Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Firstsource Solutions's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Firstsource Solutions has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
532809 Past Performance
How has Firstsource Solutions performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Firstsource Solutions's year on year earnings growth rate has been positive over the past 5 years.
- Firstsource Solutions's 1-year earnings growth exceeds its 5-year average (24.5% vs 12.5%)
- Firstsource Solutions's earnings growth has not exceeded the IN IT industry average in the past year (24.5% vs 24.5%).
Earnings and Revenue History
All data from Firstsource Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 37,563.89 | 3,723.68 | 2,020.43 | |
| 2018-09-30 | 36,583.85 | 3,737.87 | 2,020.43 | |
| 2018-06-30 | 35,766.14 | 3,497.34 | ||
| 2018-03-31 | 35,352.47 | 3,265.19 | 2,020.43 | |
| 2017-12-31 | 35,302.55 | 2,990.63 | 2,259.08 | |
| 2017-09-30 | 35,284.26 | 2,695.21 | 2,259.08 | |
| 2017-06-30 | 35,398.12 | 2,720.32 | ||
| 2017-03-31 | 35,556.10 | 2,799.96 | 2,259.08 | |
| 2016-12-31 | 35,457.77 | 3,006.18 | 1,973.14 | |
| 2016-09-30 | 34,789.60 | 2,980.62 | 1,973.14 | |
| 2016-06-30 | 33,824.00 | 2,854.65 | 1,973.14 | |
| 2016-03-31 | 32,172.53 | 2,604.87 | 1,973.14 | |
| 2015-12-31 | 30,842.23 | 2,476.15 | 5,597.21 | |
| 2015-09-30 | 30,444.84 | 2,380.86 | 5,597.21 | |
| 2015-06-30 | 30,111.28 | 2,374.78 | 5,597.21 | |
| 2015-03-31 | 30,346.52 | 2,343.18 | 1,911.02 | |
| 2014-12-31 | 30,541.89 | 2,308.50 | 5,383.95 | |
| 2014-09-30 | 31,162.84 | 2,216.47 | 5,383.95 | |
| 2014-06-30 | 31,443.81 | 2,051.63 | 5,383.95 | |
| 2014-03-31 | 31,058.76 | 1,929.62 | 5,383.95 | |
| 2013-12-31 | 30,088.76 | 1,743.25 | 5,292.22 | |
| 2013-09-30 | 29,291.06 | 1,674.84 | 5,292.22 | |
| 2013-06-30 | 28,567.21 | 1,586.59 | 5,292.22 | |
| 2013-03-31 | 28,185.35 | 1,465.92 | 5,292.22 | |
| 2012-12-31 | 27,563.68 | 1,294.58 | 4,702.42 | |
| 2012-09-30 | 26,181.49 | 948.45 | 4,702.42 | |
| 2012-06-30 | 24,213.43 | 803.66 | 4,702.42 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Firstsource Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Firstsource Solutions used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
- Firstsource Solutions has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Firstsource Solutions's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Firstsource Solutions has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
532809 Health
How is Firstsource Solutions's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Firstsource Solutions's finances.
The net worth of a company is the difference between its assets and liabilities.
- Firstsource Solutions's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Firstsource Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Firstsource Solutions Company Filings, last reported 3 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 25,032.29 | 6,571.49 | 2,577.90 |
| 2018-09-30 | 25,032.29 | 6,571.49 | 2,577.90 |
| 2018-06-30 | 23,530.13 | 8,191.88 | 3,361.36 |
| 2018-03-31 | 23,530.13 | 6,917.46 | 1,450.70 |
| 2017-12-31 | 21,639.98 | 8,956.02 | 3,739.63 |
| 2017-09-30 | 21,639.98 | 8,956.02 | 3,739.63 |
| 2017-06-30 | 20,291.78 | 9,224.65 | 4,194.19 |
| 2017-03-31 | 20,291.78 | 9,858.35 | 1,910.63 |
| 2016-12-31 | 19,246.39 | 8,765.73 | 3,615.23 |
| 2016-09-30 | 19,246.39 | 8,765.73 | 3,615.23 |
| 2016-06-30 | 24,270.51 | 9,395.09 | 1,456.84 |
| 2016-03-31 | 17,789.87 | 9,221.54 | 1,456.84 |
| 2015-12-31 | 22,559.34 | 11,910.23 | 1,722.74 |
| 2015-09-30 | 22,559.34 | 11,910.23 | 1,722.74 |
| 2015-06-30 | 20,902.68 | 10,675.89 | 1,478.40 |
| 2015-03-31 | 20,902.68 | 10,675.89 | 1,478.40 |
| 2014-12-31 | 22,806.57 | 8,485.50 | 1,843.02 |
| 2014-09-30 | 22,806.57 | 8,485.50 | 1,843.02 |
| 2014-06-30 | 20,929.22 | 12,242.55 | 1,889.21 |
| 2014-03-31 | 20,929.22 | 12,242.55 | 1,889.21 |
| 2013-12-31 | 19,821.68 | 10,469.52 | 1,468.84 |
| 2013-09-30 | 19,821.68 | 10,469.52 | 1,468.84 |
| 2013-06-30 | 17,147.74 | 12,900.54 | 901.01 |
| 2013-03-31 | 17,147.74 | 13,008.06 | 901.01 |
| 2012-12-31 | 14,527.84 | 24,182.98 | 7,751.00 |
| 2012-09-30 | 14,527.84 | 24,182.98 | 7,751.00 |
| 2012-06-30 | 14,312.09 | 21,250.20 | 7,612.99 |
- Firstsource Solutions's level of debt (26.3%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (52.9% vs 26.3% today).
- Debt is well covered by operating cash flow (47.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 16.8x coverage).
Financial health checks
We assess Firstsource Solutions's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Firstsource Solutions has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
532809 Dividends
What is Firstsource Solutions's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Firstsource Solutions
shares you are expected to receive
₹59
in your first year as a dividend.
Dividend Amount
- Firstsource Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
- Firstsource Solutions's dividend is above the markets top 25% of dividend payers in India (1.93%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| India IT Industry Average Dividend Yield | Market Cap Weighted Average of 40 Stocks | 1.5% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1400 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 1.9% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-03-31 | ||
| 2021-03-31 | 2.30 | 1.00 |
| 2020-03-31 | 2.10 | 1.00 |
| 2019-03-31 | 1.90 | 1.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-08-07 | 1.500 | 2.830 |
| 2018-05-07 | 1.500 | 2.076 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- It is too early to tell whether Firstsource Solutions has stable dividend payments.
- Firstsource Solutions only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of
Firstsource Solutions's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.6x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3x coverage).
Income/ dividend checks
We assess Firstsource Solutions's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Firstsource Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Firstsource Solutions has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
532809 Management
CEO
| COMPENSATION | ₹136,089,659 |
| AGE | 46 |
| TENURE AS CEO | 6.9 years |
CEO Bio
Mr. Rajesh Subramanium has been Managing Director and Chief Executive Officer of Firstsource Solutions Limited since May 16, 2012 and its Executive Director since June 30, 2011. Mr. Subramanium is responsible for driving the Firstsource's strategic and corporate initiatives globally and evolving the Firstsource's business model towards achieving the long term growth, profitability and industry leadership of the organisation. He served as Deputy Managing Director of Firstsource Solutions Limited from August 1, 2011 to May 2012 and also served as its Chief Financial Officer since August 1, 2011. He rejoined Firstsource in July 2011. He first joined First Source in 2002, where he last served as the Chief Financial Officer from November 2002 to June 2008 and Executive Vice President. He also serves a Venture Consultant at Walden India Advisors Private Ltd. He serves as a Venture Consultant at Walden International. Prior to rejoining Firstsource, he served as the Managing Director and Head of Indian Operations at Walden International, where he focused on software, information technology services and emerging technologies and was based at the Indian office. He has 12 years of experience in mergers and acquisitions, long term funding, structuring and alliances. He served as the Head of Corporate Development and Investor Relations at ICICI OneSource. Mr. Subramanium worked at ICICI Bank Limited and Pioneer ITI Amc Mutual Fund Ltd. Prior to ICICI OneSource, he served as the Vice President of Investments at GIV Venture Partners. Prior to GIV, Mr. Subramanium served at Ernst & Young LLP and KPMG, where he served on the Lead Advisory Division, handling mergers and acquisitions and corporate finance. He started his career as an Investment Analyst at Pioneer ITI Mutual Fund. He also serves as a Director at A & A Dukaan Financial Services Private Limited. He serves as a Director or Observer of Mindtree Consulting Private Limited and CoOptions Technologies Limited. Mr. Subramanium serves on BankBazaar.com's board. He served as a Director of Quatrro Global Services Pvt. Ltd. He holds an M.B.A. from the Richmond College, London and a B.Com from Madras University.
CEO Compensation
- Rajesh's compensation has been consistent with company performance over the past year.
- Rajesh's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the Firstsource Solutions management team in years:
- The average tenure for the Firstsource Solutions management team is less than 2 years, this suggests a new team.
Management Team
Rajesh Subramaniam
MD, CEO & Executive Director
₹136M
46
6.9 yrs
Dinesh Jain
President & CFO
₹27M
50
Pooja Nambiar
Company Secretary & Compliance Officer
₹3M
2.3 yrs
Soma Pandey
President & Chief Human Resources Officer
1.3 yrs
Manjunath Srivatsa
Senior Vice President of Administration & Physical Security
₹7M
46
Ankur Maheshwari
Head of IR & Corporate Planning (M&A)
Raji Raghavan
Head, Marketing & Corporate Communications
1.3 yrs
Deep Babur
Executive Vice President of Finance
₹10M
41
Sean Canning
President & Chief Operating Officer of the Customer Management business
0.8 yrs
M. Satish
Executive Vice President of Human Resources
₹13M
46
6.2 yrs
Board of Directors Tenure
Average tenure and age of the Firstsource Solutions board of directors in years:
- The tenure for the Firstsource Solutions board of directors is about average.
Board of Directors
Sanjiv Goenka
Chairman
₹400K
57
6.3 yrs
Rajesh Subramaniam
MD, CEO & Executive Director
₹136M
46
7.8 yrs
Pradip Roy
Independent Non-Executive Director
₹700K
70
6.3 yrs
Shashwat Goenka
Non Independent Non-Executive Director
₹500K
28
6.3 yrs
Subrata Talukdar
Non Independent Non-Executive Director
₹950K
59
6.3 yrs
Grace Koshie
Independent Non-Executive Director
₹650K
65
4.2 yrs
V. Sharma
Independent Non-Executive Director
₹450K
65
4.4 yrs
Pinto Khaitan
Non-Executive & Non Independent Director
₹300K
77
4.4 yrs
Pratip Chaudhuri
Non-Executive Independent Director
Sunil Mitra
Non-Executive Independent Director
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 21. Dec 18 | Sell | K. Venkataraman | Individual | 18. Dec 18 | 20. Dec 18 | -104,001 | ₹51.50 | ₹-5,356,044 | ||
| 12. Jun 18 | Sell | Badrinath Bharadwaj | Individual | 07. Jun 18 | 07. Jun 18 | -20,000 | ₹79.00 | ₹-1,579,999 | ||
| 18. Sep 18 | Sell | Rajesh Subramaniam | Individual | 11. Sep 18 | 11. Sep 18 | -60,000 | ₹74.88 | ₹-4,493,047 | ||
| 11. Sep 18 | Sell | Rajesh Subramaniam | Individual | 06. Sep 18 | 10. Sep 18 | -430,647 | ₹76.00 | ₹-32,564,931 | ||
| 12. Jul 18 | Sell | Deep Babur | Individual | 10. Jul 18 | 11. Jul 18 | -21,000 | ₹75.28 | ₹-1,580,849 | ||
| 26. Jun 18 | Sell | Arun Tyagi | Individual | 15. Jun 18 | 20. Jun 18 | -60,000 | ₹72.37 | ₹-4,321,697 | ||
| 21. Jun 18 | Sell | Rajesh Subramaniam | Individual | 15. Jun 18 | 19. Jun 18 | -200,000 | ₹80.40 | ₹-15,983,212 | ||
| 14. Jun 18 | Sell | Rajesh Subramaniam | Individual | 13. Jun 18 | 13. Jun 18 | -2,784 | ₹82.25 | ₹-228,984 | ||
| 13. Jun 18 | Sell | Rajesh Subramaniam | Individual | 12. Jun 18 | 12. Jun 18 | -400,000 | ₹81.23 | ₹-32,491,992 | ||
| 12. Jun 18 | Sell | Anupam Bharteeya | Individual | 06. Jun 18 | 06. Jun 18 | -35,000 | ₹73.24 | ₹-2,563,381 | ||
| 11. Jun 18 | Sell | Rajesh Subramaniam | Individual | 08. Jun 18 | 08. Jun 18 | -99,657 | ₹78.61 | ₹-7,834,036 | ||
| 08. Jun 18 | Sell | Rajesh Subramaniam | Individual | 07. Jun 18 | 07. Jun 18 | -345,546 | ₹78.13 | ₹-26,997,503 | ||
| 07. Jun 18 | Sell | Rajesh Subramaniam | Individual | 05. Jun 18 | 06. Jun 18 | -280,061 | ₹76.45 | ₹-21,084,774 | ||
| 05. Jun 18 | Sell | Deep Babur | Individual | 01. Jun 18 | 01. Jun 18 | -54,000 | ₹74.07 | ₹-4,000,047 | ||
| 05. Jun 18 | Sell | Rajesh Subramaniam | Individual | 01. Jun 18 | 04. Jun 18 | -324,736 | ₹75.84 | ₹-24,629,266 | ||
| 31. May 18 | Sell | Deep Babur | Individual | 25. May 18 | 25. May 18 | -6,000 | ₹72.07 | ₹-432,450 | ||
| 28. May 18 | Sell | Manjunath Srivatsa | Individual | 17. May 18 | 17. May 18 | -33,889 | ₹71.70 | ₹-2,429,999 | ||
| 28. May 18 | Sell | Dinesh Jain | Individual | 25. May 18 | 25. May 18 | -80,000 | ₹71.42 | ₹-5,713,864 | ||
| 23. May 18 | Sell | Dinesh Jain | Individual | 18. May 18 | 18. May 18 | -183,750 | ₹73.11 | ₹-13,434,251 | ||
| 21. May 18 | Sell | Deep Babur | Individual | 17. May 18 | 18. May 18 | -15,000 | ₹73.65 | ₹-1,104,750 | ||
| 14. May 18 | Sell | Deepak Kolambkar | Individual | 10. May 18 | 11. May 18 | -53,600 | ₹72.07 | ₹-3,862,951 | ||
| 14. May 18 | Sell | Arun Tyagi | Individual | 10. May 18 | 10. May 18 | -20,000 | ₹71.57 | ₹-1,431,499 | ||
Management checks
We assess Firstsource Solutions's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Firstsource Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
532809 Company Info
Description
Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally. The company offers customer lifecycle solutions, including acquisition, account servicing, collection, and retention solutions; sales ledger administration and collection, cash management and administration, payroll, VAT, and tax management services; and credit and bank cards, private label retail cards, automotive and personal loans, overdraft accounts, and mortgage collection services; healthcare collection services; and default management, prevention, and recovery solutions. It also provides contact center and back-office processing services; claims processing and adjudication, digital mailroom and document, enterprise claim, omni channel contact center, provider data management and credentialing, quality assurance, and telehealth support services, as well as member enrollment, billing, and eligibility services; and MedAssist, a revenue cycle product suite to enhance the revenue for hospitals and patient experience. In addition, the company manages claims handling transactions, including claims management, adjudication, remediation, and fulfillment; origination, home equity, routine and default servicing, title, and closing and escrow underwriting services; invoice factoring and discounting, payroll finance, debtor protection, deal management and pay-outs, cash allocation, sales ledger management, account servicing, complaints handling, credit control, and payment recovery; and business consulting services. It serves the banking and financial services, healthcare, telecom and media, insurance, mortgage, utilities, and other industries. The company was formerly known as ICICI Onesource Limited and changed its name to Firstsource Solutions Limited in 2006. The company was founded in 2001 and is based in Mumbai, India. Firstsource Solutions Limited is a subsidiary of Spen Liq Private limited.
Details
| Name: | Firstsource Solutions Limited |
| 532809 | |
| Exchange: | BSE |
| Founded: | 2001 |
| ₹35,280,005,644 | |
| 691,087,280 | |
| Website: | http://www.firstsource.com |
| Address: |
Firstsource Solutions Limited Paradigm ‘B’ Wing, 5th Floor, Mindspace, Mumbai, Maharashtra, 400064, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 532809 | Equity Shares | Mumbai Stock Exchange | IN | INR | 22. Feb 2007 | |
| NSEI | FSL | Equity Shares | National Stock Exchange of India | IN | INR | 22. Feb 2007 |
Number of employees
Current staff
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/23 12:46 |
| End of day share price update: | 2019/04/23 00:00 |
| Last estimates confirmation: | 2019/04/10 |
| Last earnings filing: | 2019/02/04 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
