Firstsource Solutions Ltd's profit after tax (PAT) dropped 67 per cent on a year-on-year basis for the first quarter ended June 2011.

The net profit for the quarter was Rs 11 crore, against Rs 32 crore in the corresponding year-ago quarter. On a sequential basis too, net profit dropped, by 72 per cent, from Rs 38 crore.

The operating EBIT (earnings before interest and tax) for the last quarter is down 55.3 per cent, to Rs 20 crore, from Rs 46 crore in the year-ago quarter.

Profitability was impacted primarily due to significant hiring and ramp-up costs in the company's Asia business unit, telecom client ramp down, and lower volumes in offshore businesses, said a news release from the company.

Revenues for the quarter rose 6.6 per cent on a year-on-year basis, at Rs 523 crore (Rs 491 crore). However, revenues dropped 4.3 per cent on a quarter on quarter basis, the revenue in the quarter that ended in March 2011 being Rs 546 crore. “Q-o-Q revenues were lower primarily due to more pronounced softness in BFSI Collections volumes than usual seasonal fall off, Telecom client ramp down and lower volumes in offshore businesses,” said the press release.

The company added 3,251 employees in the quarter.

The company's share price fell by 0.30 per cent to Rs 16.50 on the BSE.

Raises $180 m

PTI reports: In a separate filing on the BSE, the company said it has raised $180 million (nearly Rs 798 crore) long—term loans from the international market to refinance existing loans and foreign currency convertible bonds to reduce cost of finance.

The lenders include overseas branches of Axis Bank Canara Bank, ICICI Bank and Indian Overseas Bank along with GE Capital, USA and DBS Bank.

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