· Firstsource reported revenues at Rs 8.9 bn (0.8% QoQ ,+2.2% YoY) in line with estimates.
· EBIT at Rs 880 mn (-4% QoQ ,-13% YoY) are a tad lower than estimates on a reported basis. However more importantly , this is aided by a slight change in depreciation /amortization policy which has led to a lower depreciation/amortization charge by ~RS 53 mn during the quarter.
· Net profits at Rs 648 mn(-7% QoQ, -19% YoY) lower than estimates on account of lower other income and slight miss on operational performance.
We currently have an ACCUMULATE rating on Firstsource with a TP of Rs 50. At CMP of Rs 40, Firstsource trades at 8x/7x FY18/19E P/E. We await more commentary on the outlook of (1) ISGN business, (2) transition on the Sky Deal . Concall scheduled for 3 p.m today ( Dial in: 022-30652322)
|
In Rs mn
|
Q4FY17A
|
Q3FY17
|
QoQ(%)
|
Q4FY16
|
YoY(%)
|
Q4FY17E
|
|
Revenues (in US$ mn)
|
129.6
|
127.0
|
2.0
|
126
|
2.5
|
130.4
|
|
Net sales
|
8,923
|
8,854
|
0.8
|
8,730
|
2.2
|
8,935
|
|
Operating expenses
|
7,933
|
7,782
|
7,568
|
7,879
|
||
|
EBITDA
|
990
|
1072
|
-7.6
|
1162
|
-14.8
|
1056
|
|
Margins (%)
|
11.1
|
12.1
|
-100
|
13.3
|
(220)
|
11.8
|
|
Depreciation
|
110
|
156
|
147
|
157
|
||
|
EBIT
|
880
|
916
|
-4.0
|
1015
|
-13.3
|
899
|
|
Margins (%)
|
9.9
|
10.3
|
-50
|
11.6
|
10.1
|
|
|
Interest Paid
|
114
|
99
|
129
|
110
|
||
|
Other income
|
-5
|
14
|
19
|
18
|
||
|
Pre-tax profit
|
761
|
831
|
-8.5
|
905
|
-16.0
|
808
|
|
Tax provided
|
112
|
134
|
109
|
129
|
||
|
Profit after tax
|
649
|
698
|
796
|
679
|
||
|
Minority
|
1
|
0
|
0
|
1
|
||
|
Emkay Net profit
|
648
|
698
|
-7.1
|
797
|
-18.7
|
678
|
|
EPS, Rs
|
0.96
|
1.03
|
|
1.18
|
|
1.00
|
