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Entry Price

98.00

Target

120.00

Recommend Date

10-02-2021

Return

22.45 %
BUY

Date : 10-02-2021

Firstsource Solution (FSL) reported a healthy set of Q3FY21 numbers. Dollar revenues increased 15.6% QoQ (up 24.9% YoY) led by healthy growth in top client, 15.9% QoQ growth in BFS and 26.1% QoQ growth in communication, media and technology (CMT). In rupee terms, revenues increased 29.6% YoY, 14.9% QoQ. EBIT margins increased 20 bps QoQ to 11.6%. Total debt declined from | 843.3 crore in FY20 to | 505.4 crore in 9MFY21. FSL has guided 16-17% YoY growth (up from earlier guidance of 9-12%) in FY21E revenues in constant currency terms and operating margins in the range of 11.25-11.5%