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Firstsource Solutions

NSEI:FSL
Snowflake Description

Excellent balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FSL
NSEI
₹35B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

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 18 days ago. More info.


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  • Firstsource Solutions has significant price volatility in the past 3 months.
FSL Share Price and Events
7 Day Returns
6.3%
NSEI:FSL
-2.6%
IN IT
3.3%
IN Market
1 Year Returns
-24.8%
NSEI:FSL
14.3%
IN IT
-0.5%
IN Market
FSL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Firstsource Solutions (FSL) 6.3% 5.3% 27.9% -24.8% 30.2% 70.2%
IN IT -2.6% -4.1% 1.8% 14.3% 41.8% 79.4%
IN Market 3.3% -1.2% 5.9% -0.5% 34.4% 45.6%
1 Year Return vs Industry and Market
  • FSL underperformed the IT industry which returned 14.3% over the past year.
  • FSL underperformed the Market in India which returned -0.5% over the past year.
Price Volatility
FSL
Industry
5yr Volatility vs Market

FSL Value

 Is Firstsource Solutions undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Firstsource Solutions.

NSEI:FSL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17%
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.

Calculation of Discount Rate/ Cost of Equity for NSEI:FSL
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 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 35%) (15.69%))
1.103
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.103 * 8.6%)
17.03%

Discounted Cash Flow Calculation for NSEI:FSL 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.

NSEI:FSL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.03%)
2019 3,752.00 Analyst x3 3,205.95
2020 4,082.50 Analyst x2 2,980.67
2021 4,251.00 Analyst x3 2,652.00
2022 4,467.70 Est @ 5.1% 2,381.56
2023 4,728.32 Est @ 5.83% 2,153.66
2024 5,028.49 Est @ 6.35% 1,957.05
2025 5,365.84 Est @ 6.71% 1,784.42
2026 5,739.36 Est @ 6.96% 1,630.86
2027 6,149.03 Est @ 7.14% 1,492.98
2028 6,595.54 Est @ 7.26% 1,368.33
Present value of next 10 years cash flows ₹21,607.49
NSEI:FSL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹6,595.54 × (1 + 7.55%) ÷ (17.03% – 7.55%)
₹74,807.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹74,807.65 ÷ (1 + 17.03%)10
₹15,519.86
NSEI:FSL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹21,607.49 + ₹15,519.86
₹37,127.35
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹37,127.35 / 691.09
₹53.72
NSEI:FSL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:FSL represents 0.99815x of BSE:532809
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99815x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 53.72 x 0.99815
₹53.62
Value per share (INR) From above. ₹53.62
Current discount Discount to share price of ₹54.05
= -1 x (₹54.05 - ₹53.62) / ₹53.62
-0.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Firstsource Solutions is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NSEI:FSL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹5.48
BSE:532809 Share Price ** BSE (2019-05-24) in INR ₹54.15
India IT Industry PE Ratio Median Figure of 86 Publicly-Listed IT Companies 14.59x
India Market PE Ratio Median Figure of 2,774 Publicly-Listed Companies 15.46x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Firstsource Solutions.

NSEI:FSL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532809 Share Price ÷ EPS (both in INR)

= 54.15 ÷ 5.48

9.88x

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?
Raw Data
NSEI:FSL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
6.5%per year
India IT Industry PEG Ratio Median Figure of 20 Publicly-Listed IT Companies 1.33x
India Market PEG Ratio Median Figure of 557 Publicly-Listed Companies 1.3x

*Line of best fit is calculated by linear regression .

NSEI:FSL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.88x ÷ 6.5%

1.52x

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?
Raw Data
NSEI:FSL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹39.33
BSE:532809 Share Price * BSE (2019-05-24) in INR ₹54.15
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.23x
India Market PB Ratio Median Figure of 3,642 Publicly-Listed Companies 1.05x
NSEI:FSL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532809 Share Price ÷ Book Value per Share (both in INR)

= 54.15 ÷ 39.33

1.38x

* 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.
X
Value checks
We assess Firstsource Solutions's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. 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.

FSL Future Performance

 How is Firstsource Solutions expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

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!
Annual Growth Rate
6.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Firstsource Solutions expected to grow at an attractive rate?
  • 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
Raw Data
NSEI:FSL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:FSL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6.5%
NSEI:FSL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 6.8%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.4%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.3%
India Market Earnings Growth Rate Market Cap Weighted Average 16.9%
India Market Revenue Growth Rate Market Cap Weighted Average 10.1%

*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
Raw Data
NSEI:FSL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:FSL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31
2021-03-31 43,822 5,007 4,303 2
2020-03-31 41,184 4,833 3,994 3
NSEI:FSL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 38,263 3,778
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Firstsource Solutions's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
  • Firstsource Solutions's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:FSL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Firstsource Solutions Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:FSL Future Estimates Data
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 6.20 6.60 5.90 4.00
2020-03-31 5.74 6.00 5.60 5.00
NSEI:FSL Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 5.48
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

*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%).
X
Future performance checks
We assess Firstsource Solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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.

FSL 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
Below we compare Firstsource Solutions's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (15.7% vs 12.1%)
  • Firstsource Solutions's earnings growth has not exceeded the IN IT industry average in the past year (15.7% vs 31.5%).
Earnings and Revenue History
Firstsource Solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Firstsource Solutions Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:FSL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 38,262.77 3,777.86
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).
X
Past performance checks
We assess Firstsource Solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.

FSL 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Firstsource Solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.5x 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.
Raw Data

All data from Firstsource Solutions Company Filings, last reported 1 month ago.

NSEI:FSL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 27,213.15 5,459.34 3,398.42
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 (20.1%) 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 (58.5% vs 20.1% today).
  • Debt is well covered by operating cash flow (57.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.9x coverage).
X
Financial health checks
We assess Firstsource Solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Firstsource Solutions has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

FSL 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
Dividend payments
3.69%
Current annual income from Firstsource Solutions dividends. Estimated to be 4.06% next year.
If you bought ₹2,000 of Firstsource Solutions shares you are expected to receive ₹74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Firstsource Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.54%).
  • Firstsource Solutions's dividend is above the markets top 25% of dividend payers in India (2.01%).
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.
Raw Data
NSEI:FSL Annualized Past and Future Dividends
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 4 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1408 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 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:FSL Future Dividends Estimate Data
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
NSEI:FSL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-06 2.000 3.929
2018-08-07 1.500 2.836
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 (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Firstsource Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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.

FSL Management

 What is the CEO of Firstsource Solutions's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rajesh Subramaniam
COMPENSATION ₹136,089,659
AGE 46
TENURE AS CEO 7 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, both up more than 20%.
  • 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:

1.8
Average Tenure
46
Average Age
  • The average tenure for the Firstsource Solutions management team is less than 2 years, this suggests a new team.
Management Team

Rajesh Subramaniam

TITLE
MD, CEO & Executive Director
COMPENSATION
₹136M
AGE
46
TENURE
7 yrs

Dinesh Jain

TITLE
President & CFO
COMPENSATION
₹27M
AGE
50

Pooja Nambiar

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹3M
TENURE
2.3 yrs

Soma Pandey

TITLE
President & Chief Human Resources Officer
TENURE
1.3 yrs

Manjunath Srivatsa

TITLE
Senior Vice President of Administration & Physical Security
COMPENSATION
₹7M
AGE
46

Ankur Maheshwari

TITLE
Head of IR & Corporate Planning (M&A)

Raji Raghavan

TITLE
Head, Marketing & Corporate Communications
TENURE
1.3 yrs

Deep Babur

TITLE
Executive Vice President of Finance
COMPENSATION
₹10M
AGE
41

Sean Canning

TITLE
President & Chief Operating Officer of the Customer Management business
TENURE
0.8 yrs

M. Satish

TITLE
Executive Vice President of Human Resources
COMPENSATION
₹13M
AGE
46
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the Firstsource Solutions board of directors in years:

5.5
Average Tenure
62
Average Age
  • The tenure for the Firstsource Solutions board of directors is about average.
Board of Directors

Sanjiv Goenka

TITLE
Chairman
COMPENSATION
₹400K
AGE
57
TENURE
6.4 yrs

Rajesh Subramaniam

TITLE
MD, CEO & Executive Director
COMPENSATION
₹136M
AGE
46
TENURE
7.9 yrs

Pradip Roy

TITLE
Independent Non-Executive Director
COMPENSATION
₹700K
AGE
70
TENURE
6.4 yrs

Shashwat Goenka

TITLE
Non Independent Non-Executive Director
COMPENSATION
₹500K
AGE
28
TENURE
6.4 yrs

Subrata Talukdar

TITLE
Non Independent Non-Executive Director
COMPENSATION
₹950K
AGE
59
TENURE
6.4 yrs

Grace Koshie

TITLE
Independent Non-Executive Director
COMPENSATION
₹650K
AGE
65
TENURE
4.3 yrs

V. Sharma

TITLE
Independent Non-Executive Director
COMPENSATION
₹450K
AGE
65
TENURE
4.5 yrs

Pinto Khaitan

TITLE
Non-Executive & Non Independent Director
COMPENSATION
₹300K
AGE
77
TENURE
4.5 yrs

Pratip Chaudhuri

TITLE
Non-Executive Independent Director
TENURE
0.1 yrs

Sunil Mitra

TITLE
Non-Executive Independent Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • Firstsource Solutions insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
22. May 19 Sell Rajesh Subramaniam Individual 20. May 19 21. May 19 -171,720 ₹51.97 ₹-8,925,128
20. May 19 Sell Rajesh Subramaniam Individual 16. May 19 17. May 19 -78,280 ₹51.43 ₹-4,026,222
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 Dinesh Jain Individual 25. May 18 25. May 18 -80,000 ₹71.42 ₹-5,713,864
X
Management checks
We assess Firstsource Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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.

FSL News

Simply Wall St News

Is Firstsource Solutions Limited (NSE:FSL) Potentially Underrated?

NSEI:FSL Historical Dividend Yield, May 20th 2019 Next Steps: For Firstsource Solutions, there are three relevant factors you should look at: Future Outlook: What are well-informed industry analysts predicting for FSL’s future growth? … Take a look at our free research report of analyst consensus for FSL’s outlook. … The intrinsic value infographic in our free research report helps visualize whether FSL is currently mispriced by the market.

Simply Wall St -

What Kind Of Shareholders Own Firstsource Solutions Limited (NSE:FSL)?

Check out our latest analysis for Firstsource Solutions NSEI:FSL Ownership Summary, May 11th 2019 What Does The Institutional Ownership Tell Us About Firstsource Solutions? … Insider Ownership Of Firstsource Solutions The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … Public Company Ownership Public companies currently own 54% of FSL stock.

Simply Wall St -

Calculating The Intrinsic Value Of Firstsource Solutions Limited (NSE:FSL)

In this article we are going to estimate the intrinsic value of Firstsource Solutions Limited (NSE:FSL). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Here's Why I Think Firstsource Solutions (NSE:FSL) Might Deserve Your Attention Today

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Firstsource Solutions (NSE:FSL). … How Quickly Is Firstsource Solutions Increasing Earnings Per Share. … Over the last three years, Firstsource Solutions has grown EPS by 14% per year.

Simply Wall St -

Should Firstsource Solutions Limited (NSE:FSL) Be Part Of Your Portfolio?

Firstsource Solutions Limited (NSE:FSL) has begun paying dividends recently. … Let's dig deeper into whether Firstsource Solutions should have a place in your portfolio. … Check out our latest analysis for Firstsource Solutions

Simply Wall St -

Does Firstsource Solutions Limited (NSE:FSL) Generate Enough Cash?

Firstsource Solutions Limited (NSE:FSL) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I’ve analysed below, the health and outlook of Firstsource Solutions’s cash flow, which will help you understand the stock from a cash standpoint. … I will be analysing Firstsource Solutions’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

Firstsource Solutions Limited (NSE:FSL) Earns A Nice Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Was Firstsource Solutions Limited's (NSE:FSL) Earnings Growth Better Than The Industry's?

Below, I assess FSL's latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements. … Did FSL's recent earnings growth beat the long-term trend and the industry. … FSL's trailing twelve-month earnings (from 31 December 2018) of ₹3.7b has.

Simply Wall St -

Introducing Firstsource Solutions, A Stock That Climbed 54% In The Last Five Years

It might be of some concern to shareholders to see the Firstsource Solutions Limited (NSE:FSL) share price down 12% in the last month. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Firstsource Solutions achieved compound earnings per share (EPS) growth of 13% per year.

Simply Wall St -

Does Firstsource Solutions Limited (NSE:FSL) Have A Good P/E Ratio?

To keep it practical, we'll show how Firstsource Solutions Limited's (NSE:FSL) P/E ratio could help you assess the value on offer. … How Do I Calculate Firstsource Solutions's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

FSL 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
FSL
Exchange: NSEI
Founded: 2001
₹34,796,244,548
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
Staff numbers
18,712
Firstsource Solutions employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 12:53
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/07
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


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.