Net sales rose 35.8% year-on-year (YoY) to Rs 1449.62 crore during the quarter. Profit before tax in Q4 FY21 stood at Rs 55.34 crore, down 46.3% from Rs 103.10 crore in Q4 FY20.
The company reported 6.5% rise in consolidated net profit to Rs 361.68 crore on a 24.3% increase in net sales to Rs 5032.68 crore in the year ended 31 March 2021 over the year ended 31 March 2020.
The Group, through its subsidiary viz, Sourcepoint Inc. has a strategic partnership agreement with a leading mortgages business group (counterparty) under which Sourcepoint will be a preferred vendor for business process management services.
As per the terms of the agreement, in exchange of the revenues realized through the counterparty by Sourcepoint, the counterparty would be entitled to an option to purchase a proportion of the equity of Sourcepoint at a fair value as on the date of grant. The agreement entitles the counterparty to seek a buyback of its equity from Sourcepoint under certain circumstances.
As at 31 March 2021, the fair value of the liability of the option has increased considerably on account of significant increase in the valuation of Sourcepoint. Also, the entitlement to option has increased basis the revenues realized by Sourcepoint, as per the terms of the agreement.
The counterparty is also negotiating for an early exercise of its entitlement. As a result, an amount of Rs 115.05 crore has been charged to the statement of profit and loss for the year ended 31 March 2021 (Rs 109.87 crore for the quarter ended 31 March 2021).
Dr. Sanjiv Goenka, chairman, RPSG Group and Firstsource Solutions, commented, Our Q4 results cap an impressive year where Firstsource delivered an industry leading revenue growth of 35.4% YoY, with all segments growing consistently. Im very pleased with how our digital services offerings continue to mature and scale, enabling us to play an integral role in our clients digital journeys.
Looking ahead, we see a great year of growth with our business performing well in an improving economic outlook.
Firstsource Solutions is a leading provider of business process solutions to more than 100 global businesses in the banking and financial services, mortgage, healthcare, communications, media and technology, and emerging segments.
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