Firstsource sells part of domestic biz

The RP-Sanjiv Goenka group’s business process outsourcing wing First source Solutions, has sold a part of its non-profitable domestic business.

In a notice to the BSE, the company said it had signed definitive agreements to sell a portion of its domestic business to Vertex Customer Management.

Firstsource, which is in the silent period, did not provide further details on the sale.

Sources said the deal would not affect Firstsource’s bottom line although there would be a dip in the top line. The move is designed to reduce loss-making and less-profitable accounts of Firstsource.

Group chairman Sanjiv Goenka had earlier indicated the company’s focus would be on its international business, particularly in the UK.

Firstsource posted a 15.7 per cent decline in its net profit at ~65.3 crore during the March quarter, down from ~77.5 crore in the same period a year ago.

Goenka had said the fall was due to currency volatility as well as servicing costs for “unprofitable and less profitable accounts”.

Firstsource’s Indian operations account for 5.8 per cent of the company’s turnover of ~3,556 crore while the UK and US operations contribute 38 and 55.3 per cent, respectively.

The company reduced its headcount by 121 in the March quarter. It now has 15,446 employees in India and 10,425 employees abroad.

In its business outlook for the year, Firstsource said the domestic business faced headwinds due to consolidation in the Indian telecom market.