Goenka looking for more IT buys via Firstsource

Kolkata | Updated on March 12, 2018 Published on July 25, 2014

Sanjiv Goenka, Chairman, RP-Sanjiv Goenka

Firstsource Solutions Ltd (FSL), a subsidiary of the RP-Sanjiv Goenka Group, is aiming to be debt-free in two years.

FSL is a pure-play BPO operating in the BFSI (banking, financial services and insurance), telecom and media and healthcare space.

Having been taken over by RP-Sanjiv Goenka in October 2012, FSL reduced its borrowings from $400 million (approximately ₹2,400 crore) to $114 million (₹680 crore) as of March 31, 2014. The debt-to-equity ratio stands at a healthy 0.3 to 1.

Chairman Sanjiv Goenka told a press conference that the company is aiming to repay another $45 million (₹270 core) loan by this fiscal year-end.

“We are exploring possibilities of making early repayments. Negotiations are on,” he said.

Goenka indicated that he would be looking forward to more acquisitions in the IT space.

“But there are no immediate plans,” he said, adding that any acquisition would be through Firstsource only. The IT vertical is expected to contribute nearly 25 to 30 per cent of the revenues of the RP-Sanjiv Goenka Group in FY-15.

According to Goenka, FSL has scripted a turnaround with a growth in revenue and improving EBITDA (earnings before income tax, depreciation and amortisation ) margins. The sales pipeline, too, has seen 33 per cent growth.

“Our focus is on the bottomline and we are hopeful of seeing good growth this fiscal year too. We are also pruning loss-making accounts,” he added.

Other restructuring that the company may undertake is to look for low-cost delivery centres and manpower reorganisation. “Restructuring is an on-going process. But we are almost through,” he said.

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Published on July 25, 2014
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