NSEI:FSL

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Firstsource Solutions

Executive Summary

Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally. More Details


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Firstsource Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FSL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

FSL

-0.7%

IN IT

-4.3%

IN Market


1 Year Return

54.0%

FSL

27.0%

IN IT

-1.6%

IN Market

Return vs Industry: FSL exceeded the Indian IT industry which returned 21.4% over the past year.

Return vs Market: FSL exceeded the Indian Market which returned -4.4% over the past year.


Shareholder returns

FSLIndustryMarket
7 Day-2.5%-0.7%-4.3%
30 Day9.3%8.5%-4.2%
90 Day89.0%26.2%6.6%
1 Year63.0%54.0%30.6%27.0%0.2%-1.6%
3 Year95.8%74.0%102.0%90.5%1.9%-3.0%
5 Year206.7%172.7%92.1%73.9%38.6%28.4%

Price Volatility Vs. Market

How volatile is Firstsource Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Firstsource Solutions undervalued compared to its fair value and its price relative to the market?

14.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FSL (₹72.4) is trading above our estimate of fair value (₹46)

Significantly Below Fair Value: FSL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FSL is good value based on its PE Ratio (14.8x) compared to the IN IT industry average (16.5x).

PE vs Market: FSL is good value based on its PE Ratio (14.8x) compared to the Indian market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: FSL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: FSL is overvalued based on its PB Ratio (1.8x) compared to the IN IT industry average (1.3x).


Next Steps

Future Growth

How is Firstsource Solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSL's forecast earnings growth (12.3% per year) is above the savings rate (7.2%).

Earnings vs Market: FSL's earnings (12.3% per year) are forecast to grow slower than the Indian market (26.3% per year).

High Growth Earnings: FSL's earnings are forecast to grow, but not significantly.

Revenue vs Market: FSL's revenue (13.3% per year) is forecast to grow faster than the Indian market (11.8% per year).

High Growth Revenue: FSL's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FSL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Firstsource Solutions performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSL has high quality earnings.

Growing Profit Margin: FSL's current net profit margins (8.1%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: FSL's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: FSL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FSL had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the IT industry average (-4.7%).


Return on Equity

High ROE: FSL's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Firstsource Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: FSL's short term assets (₹11.0B) do not cover its short term liabilities (₹13.3B).

Long Term Liabilities: FSL's short term assets (₹11.0B) exceed its long term liabilities (₹4.9B).


Debt to Equity History and Analysis

Debt Level: FSL's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: FSL's debt to equity ratio has reduced from 50.2% to 31.1% over the past 5 years.

Debt Coverage: FSL's debt is well covered by operating cash flow (47.7%).

Interest Coverage: FSL's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Firstsource Solutions's current dividend yield, its reliability and sustainability?

3.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FSL's dividend (3.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: FSL's dividend (3.46%) is in the top 25% of dividend payers in the Indian market (2.38%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FSL has been paying a dividend for less than 10 years.

Growing Dividend: FSL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), FSL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Vipul Khanna

1.08yrs

Tenure

₹10,411,811

Compensation

Mr. Vipul Khanna serves as Managing Director, Chief Executive Officer and Additional Director at Firstsource Solutions Limited since August 2, 2019. Mr. Khanna was Executive Vice President and Global Head ...


CEO Compensation Analysis

Compensation vs Market: Vipul's total compensation ($USD141.46K) is below average for companies of similar size in the Indian market ($USD393.97K).

Compensation vs Earnings: Insufficient data to compare Vipul's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Vipul Khanna
MD, CEO & Additional Director1.08yrs₹10.41m0.015%
₹ 7.4m
Dinesh Jain
President & CFOno data₹39.77m0.024%
₹ 11.9m
Pooja Nambiar
Company Secretary & Compliance Officer 3.67yrs₹2.91mno data
Soma Pandey
President & Chief Human Resources Officer2.67yrsno datano data
Prashanth Nandella
President & COO0.67yrno datano data
Anshul Verma
President of Communications0.42yrno datano data
Manjunath Srivatsa
Senior Vice President of Administration & Physical Securityno data₹7.03mno data
Ankur Maheshwari
Head of IR & Corporate Planning (M&A)no datano datano data
Rajlakshmi Raghavan
Head of Marketing & Corporate Communications2.67yrsno datano data
K. Venkataraman
President of Healthcare Provider0.67yrno data0.13%
₹ 66.9m
Bhupendra Gupta
Senior Vice President of Business Transformation6.17yrs₹10.18mno data
Siddharth Parashar
Chief Revenue Officer of Customer Management3.25yrsno datano data

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: FSL's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vipul Khanna
MD, CEO & Additional Director1.08yrs₹10.41m0.015%
₹ 7.4m
Sanjiv Goenka
Chairman7.75yrs₹300.00kno data
Pradip Roy
Independent Non-Executive Director7.75yrs₹1.00mno data
Pradip Khaitan
Non-Executive & Non Independent Director5.83yrs₹300.00kno data
Shashwat Goenka
Non Independent Non-Executive Director7.75yrs₹550.00kno data
Subrata Talukdar
Non Independent Non-Executive Director7.75yrs₹950.00kno data
Grace Koshie
Independent Non-Executive Director5.58yrs₹700.00kno data
Pratip Chaudhuri
Non-Executive Independent Director1.42yrs₹500.00kno data
Sunil Mitra
Non-Executive Independent Director1.42yrs₹650.00kno data
Charles Richard Stagg
Non-Executive Independent Director1.33yrs₹150.00kno data

5.7yrs

Average Tenure

64yo

Average Age

Experienced Board: FSL's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FSL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Firstsource Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Firstsource Solutions Limited
  • Ticker: FSL
  • Exchange: NSEI
  • Founded: 2001
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹50.226b
  • Shares outstanding: 694.69m
  • Website: https://www.firstsource.com

Number of Employees


Location

  • Firstsource Solutions Limited
  • Paradigm ‘B’ Wing
  • 5th Floor, Mindspace
  • Mumbai
  • Maharashtra
  • 400064
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532809BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2007
FSLNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2007

Biography

Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally. The company offers various serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 20:20
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.