firstsource solutions ltd Management discussions
Firstsource Solutions Limited, a prominent member of the RP-Sanjiv Goenka Group, is a leading provider of tech-enabled business process solutions with a strong emphasis on purpose and people. With expertise spanning diverse industries such as Healthcare, Banking and Financial Services, Communications, Media and Technology, and more, the company has earned the trust of over 150 renowned global brands, including Fortune 500 and FTSE 100 companies.
Firstsource believes in the transformative power of a Digital First, Digital Now approach. By harnessing cutting-edge technologies like Cloud, SaaS, and automation, the Company empowers organizations to revolutionize their operations and reshape their business models. Firstsources goal is to create resilient digital ecosystems that amplify human expertise and redefine performance To further strengthen its capabilities in serving clients across sectors like Healthcare, BFSI, CMT, and beyond, the Company is reinforcing its Digital Services practice. This strategic initiative involves addressing client needs for automation, process design, and analytics. Additionally, it is focused on providing platform-based services like Digital Collections, delivering customized solutions that seamlessly integrate IT, operations, and infrastructure. The ultimate objective is to drive exceptional outcomes for clients while achieving higher margins for the Company.
Firstsources Digital First, Digital Now approach capitalizes on rapid advancements in Cloud, SaaS, and automation technologies to build powerful digital ecosystems that .supplement human expertise and redefine performance.
The key components of the Companys strategy are:
Growth in chosen verticals
Firstsource achieves this by expanding its capabilities in adjacent areas, ensuring it stays ahead of the curve and meets the evolving needs of clients, and strategically acquiring new clients while nurturing existing strategic accounts. This deliberate approach enables the Company to drive sustainable growth and maintain a strong position in the market.
Structured diversification
Firstsource is actively pursuing structured diversification within the Banking and Financial Services (BFS) vertical. Simultaneously, expanding into select sub-segments of Healthcare (HC) and Communications, Media, and Technology (CMT). By doing so, the Company aims to create a portfolio that is less susceptible to cyclical fluctuations This deliberate approach allows Firstsource to explore new opportunities, mitigate risk, and strengthen the overall business foundation.
Digital tools and services.
Firstsource is actively developing digital tools and services to enhance capabilities. The Company is harnessing the advancements inartificial intelligence (AI) and Generative AI to create innovative solutions. Additionally, it is leveraging digitization to optimize processes and drive cost-efficiency for both the organization and its clients. By embracing these digital initiatives, it aims to stay at the forefront of technological advancements, deliver enhanced value to clients, and drive continuous improvement within its operations.
During FY 2022-23, the Company generated revenues of I 60,223 million, representing a growth of 1.7% in rupee terms and a degrowth of 1.1% in constant currency terms over FY 2021-22. Profit After Tax was at I 5,137 and positions it for the next phase of growth.million, representing a degrowth of 4.4% in rupee terms over FY 2021-22.
Industry Segments
Banking and Financial Services
The Banking and Financial Services (BFS) industry experienced difficulties in CY 2022 related to macroeconomics, talent, and regulations. Increasing net interest income to enhance the top line and modernizing tech and operations to reduce costs and risk have helped the majority of mid-tier banks with multiple As part of its strategy, product offerings on assets and liabilities to improve their balance sheets. The banking sector could experience further margin compressions; capital costs and regulatory expenses are rising; in addition, banks are investing a lot of money on AI projects to upgrade the front and back ends. Digital banking is seeing tremendous growth with a possible FinTech consolidation. Top tier banks are expanding their digital operations, with a focus on building strong operations aligned with regulations.
The sudden influx consumers opening new accounts with digital banks and FinTech during the pandemic provided little opportunity for these companies to implement robust controls to comply with regulations, leaving them to remediate accounts opened during the pandemic and design foolproof processes for new product launches. During the previous fiscal year, Firstsource initiated collaborations with a few FinTech companies to assist them in developing their complete operational strategies. Additionally, the Company is currently engaged in discussions with a digital bank to create an preparation for the launch of its credit product. Moreover, it is partnering with a payments FinTech to expedite the growth of their EBIDTA in comparison to their revenues. Due to the expanding digital presence and faster payment systems, there has been a significant increase in frauds throughout the customer lifecycle. Among all banking financial and servicesactivities,fraudand remain prioritized across product lines and markets. This remains a concern for the banking sector as it seeks to satisfy increased demand in frontline customer care while reducing operational overheads via artificial intelligence and machine learning. The Company has built a partner-based FinCrime solution financial tailored for mid-tier institutions which is designed to effectively minimize data costs and streamline the Customer Due Diligence process.
The UK BFS portfolio has experienced growth in both conventional and digital offerings. As the Company strives to maintain its commitment to its valued clients, it has expanded its services to include process consulting and advisory services. The US mortgage book underwent a contraction in the first three quarters of the fiscal year. The Company witnessed signs of recuperation in the previous and current quarters as the inflationary climate started to abate. Our Collections division has demonstrated consistent expansion, and the Company is poised to say strong in the upcoming fiscal year.
In Q3 FY 2022-23, the Company implemented a revised go-to-market operational strategy, which entailed a after verticals, to allow for better client access and sharper industry specific strategies. Our new operating model has successfully enabled us to implement a focused Banking and Financial Services strategy. Firstsource is committed to deepening its presence in retail banking by leveraging its existing relationships with lending firms, top-tier and mid-tier banks, regional credit unions & non- the Company bankingcredit firms. is investing in broadening its capabilities across consumer lending products such as Auto Finance and horizontal services such as Risk & Compliance.
Firstsource focuses on tech-enabled BPM services, which include an array of key retail banking offerings such as lending operations, client lifecycle management, customer service, default management, and FinCrime services built on automation, data, and analytics. of
Firstsources mortgage competencies and value delivery capabilities have positioned it as a ‘Leader in NelsonHalls NEAT Mortgage and Loan Services 2022 report for Overall Market Segment.
Going forward, the Company anticipates significant changes in the banking sector, which will provide opportunities and challenges to our current book of business. Changes in the kinds of expertise needed in the financial services sector are anticipated to be substantial.
It is imperative that banks prioritize efforts to future-proof their organisations and implement measures to bridge the current and potential skills gap. Through strategic restructuring and targeted investments in leadership, sales, practice, partnerships, and solutions, the Company is poised to capitalize on the opportunities and overcome challenges within the retail banking sector.
Mortgage
The US mortgage significant industry experienced slowdown in CY 2022 primarily due to the rise in interest rates. According to a recent report by the Fannie Mae Federal Research Group, new home purchases in the US declined by 16.5%. This decline was triggered by multiple rate hikes implemented by the Federal Reserve in May 2023, with rates increasing from 0.25% to 5.25%. These measures were taken to address inflationary pressures resulting from pent-up demand following the pandemic and supply chain disruptions caused by heightened geopolitical tensions. Looking ahead to CY 2023, the mortgage industry is expected to face the dual challenge of reduced new mortgage originations and escalating debt due to high interest rates. As per the Federal Reserves median projection, the interest rate is anticipated to reach an all-time high of 5.1% in CY 2023 and 4.3% in CY 2024 before gradually declining to 3.1% in CY 2025.
The impact of these challenges has already become apparent in Q1 CY 2023, with new mortgage originations in the US, including refinancings, totalling just $ 323.5 billion. This figure represents a 35% decrease compared to Q4 CY 2022, marking the lowest level since Q2 CY 2014. Despite this sharp pullback, the overall consumer debt has surged to unprecedented levels, surpassing $ 17 trillion.
For CY 2023, it is projected that mortgage originations will amount to $ 1.8 trillion.
Despite this years exceptional drop, the Company is confident in the markets long-term strength. Even though the mortgage industry has focused on cutting costs, there are still significant profitability gaps. The mortgage business has the unenviable burden of significantly reducing expenses in CY 2023, all while giving priority to the correct investments for future growth. Firstsource remains ideally situated to advance this shared goal with its clients. The Company is able to tailor and offer local and hybrid delivery because of its end-to-end capabilities, extensive client access, and pan-US licensing across origination, servicing, title, and default management.
Rising digital relevance in the mortgage industry
The profitability of financial services players, especially independent mortgage companies, is expected to be impacted by the decline in newer mortgage originations and higher delinquencies. In response, the industry is undergoing changes, including the restructuring of internal processes and workforce, as well as team size reduction. However, these changes also present challenges in meeting compliance requirements.
Over the next two years, mortgage companies will need to effectively navigate the cyclicality of the industry by enhancing their ability to scale up and down with greater accuracy and lower delivery costs. They must strike a balance between cost-cutting measures and the imperatives of being effective, resilient, accountable, and agile. Technology will play a pivotal role in the success of mortgage companies. Leveraging technological advancements can automate compliance needs, expedite new product launches, and streamline loan application and approval processes. This enables increased deal closure without compromising accuracy or personalization. Furthermore, emerging technologies such as natural language processing, machine learning (ML), predictive analytics, and robotic process automation (RPA) can deliver real-time efficiency and enhancing value by improving the agility of regulatory change management processes. Firstsource holds expertise across the entire mortgage value chain, encompassing origination, underwriting, title, post-closing, and the servicing lifecycle. In addition, the Company offers platform-based quality control (QC) and due diligence services. By combining this expertise with digital technologies, Firstsource delivers enhanced value to its clients enterprises.
Moreover, Firstsource offers Intelligent Automation, combining RPA with advanced technologies like optical character recognition (OCR), AI, natural language processing (NLP), smart workflows, and ML. This transformative approach extends beyond simple automation, enabling companies to drive innovation, agility, and speed, thereby transforming their operations.
Firstsource has successfully implemented a structured Robotic Automation Process for a leading US mortgage company, enabling them to overcome the challenges associated with traditional, high-volume manual processes. Firstsource is aptly positioned to meet the changing requirements of mortgage lenders with its Digital First, Digital Now approach, recent acquisitions that have enhanced its offerings, and plans to expand its nearshore delivery capability. The Company is adapting its solutions to meet the changing client needs and deepen engagements with strategic accounts to assist in the creation of operational models for the new normal era.
Over the next few years, mortgage lenders will need to forge strategic partnerships with outsourcing vendors to manage externalities effectively while ensuring long-term sustainability.
Collections and Receivables
The overall consumer credit card debt hit $ 0.99 trillion in CY 2022, the highest level in 20 years, according to figures made public by the Federal Reserve. This increase can be attributed to a few variables, including changes in consumer purchasing patterns, easy access to credit, and economic instability. Despite these changes, delinquency rates this year showed a striking decline. Delinquency rates have fluctuated in the past, and usually a rise in consumer credit card debt would be accompanied by an increase in delinquency rates. However the delinquency rates have been quite low recently, suggesting that consumers are managing their The solid consumer balance sheet, fueled by low unemployment rates and high salaries, may also help explain why delinquency rates are low. Lending institutions worldwide are proactively shifting towards digital debt collection techniques to cost-effectively improve their recovery rates. Modern technologies and techniques empower lenders to intelligently collect their dues while ensuring a smooth borrower experience. They also provide a convenient self-service option, eliminating the need for collection agents, reducing customer handling times, meeting regulatory standards, and delivering improved outcomes.
The regulatory environment governing collections and receivables has had an impact on the segments expansion. The Company anticipates that this segment would gradually improve over the years as the industry witnesses an increase in delinquencies and the banks reserves for credit losses. Higher cost of collections, more compliance, and the capacity to target a much broader client base will be the driving forces behind the Companys growth. Firstsource is a prominent player in the collections space, offering its Digital First, Digital Now philosophy through the Digital Debt Collections platform. This platform serves various sectors, including Credit Cards, BNPL, Auto Financing. Firstsource leverages a range of technologies, such as automation, AI/ML, and Cloud-based services, along with an integrated people-technology transformation framework. This approach enables the Company to decode client interactions, reduce collection costs, and improve recovery rates effectively.
Technology advancements like automation, analytics, and artificial intelligence have improved the effectiveness and efficiency of our receivables and collections processes. The collections space is witnessing the emergence of new trends expected to streamline collections, maximize cash flow, and foster healthy customer relationships in CY 2023 and beyond. These trends include:
Digital-first approach
Growth of subscription services
Integration of Buy-Now-Pay-Later (BNPL) options with online retailers checkouts
Increased adoption of automation
Hyper-personalization
Self-service payment portals
Firstsource is proactively working towards expanding its collection services into multiple industries, including FinTechs, automotive, telecommunications, and utilities. This diversification strategy of low delinquency rates on our collection efforts. The business is looking forward to maintaining its emphasis on the roadmap for its digital collection platform, cutting responsibilities more skillfully. the time it takes to onboard new clients, and accelerating revenue and margin development in the legal collections market.
UK BFS
With Brexit in the rear-view mirror and major regulations like the LIBOR transition complete, the UK banking sector is squarely focused on empowering domestic customers to thrive. The persistent talent scarcity and the ongoing cost of living crisis posed significant challenges throughout CY 2022. Banks had to face the problem of rising living costs on two fronts: employees and consumers, with the additional obligation of preparing for the FCAs Consumer Duty Guidance in order to deliver good outcomes for retail customers.
Even though CY 2022 had its challenges, most banks have done well financially due to higher Net Interest Income and technology changes made in previous years which have improved the operating profit and reduced risk. However origination volumes across all loan products have decreased; the macroeconomy pressures still continue to leave uncertainty in the consumer lending market. The regulatory environment continues to evolve as economic crime increases, with a broader recommendation to integrate fraud across the spectrum, including ESG, to be combined with the AML function. Customers are now demanding greater personalization combined with excellent customer service. At the same time, technological innovation is challenging traditional business and delivery models while ushering in a further set of challenging competitors.
Firstsource offers end-to-end solutions to these institutions across the customer lifecycle, including acquisition, account servicing, collections and retention, complaints handling and remediation, mortgage processing and invoice financing, and asset-based lending.
The Company is witnessing an increase in loan operations volumes to assist its customers in optimizing their cost profile. Firstsource is assisting a FinTech with setting up their operations and is in discussions with a digital bank and a payroll company about designing and setting up their card operations.
Amid a fast-changing operational environment and underlying transformations, Firstsource is poised for accelerated growth as a result of the introduction of new and distinctive offerings to expand capabilities and seize emerging opportunities. In addition to expanding its existing customer base, the Company is expanding its presence to capitalize on the burgeoning FinTech market prospects.
The demand environment, digital adoption, and pipeline activity related to Fraud, Mortgage, and Customer Experience remained robust. The investments in sales and solutions over the past 12 to 18 months have yielded favorable results. As BFS clients increasingly prioritize cost efficiency, the Company identifies a wealth of opportunities, particularly in digital, nearshore, and offshore solutions. The Company anticipates maintaining this positive momentum, with an intensified focus on acquiring new clients and expanding offshore business activities.
Success story
Digital Transformation
The client: A world-leading global payments FinTech that helps clients navigate the complex global payments market. Sending payment to 190+ countries, the firm is headquartered in London, with a presence across Europe, North America, South America, Australasia, Asia and the Middle East.
The challenge: Account onboarding processes were manual including KYC checks resulting in inefficiencies, compliance issues and rise in operational costs. The goal was to identify and implement automation opportunities aimed at improving customer acquisition and onboarding.
The solutions: Our Insights, Design Experience and Advisory (IDEA) services team redesigned their Target Operating Model for risk, compliance and customer acquisition processes.
The Company conducted 90+ SME business POC sessions and deployed automation for KYC, customer due diligence, periodic reviews, referral partner performance, payments screening, and sanctions monitoring processes.
The result: RPA-led solutions resulted in $3M direct cost savings and 55% reduction in onboarding time. There was a 40-70% reduction in client acquisition costs and 15% reduction in third party commission payables.
Healthcare
The healthcare industry is experiencing rapid growth and a shift toward more customer-oriented services, making it crucial for businesses to provide enhanced patient and customer experiences. Hospitals and health insurance companies are at the forefront of this outsourcing market, seeking to manage various aspects of their operations, integrate digital capabilities, improve consumer experiences, and achieve greater efficiencies. These competencies contribute to the development of a comprehensive suite of digital operations.
The Healthcare segment at Firstsource is the Companys second-largest industry vertical, playing a pivotal role in positively impacting the lives of millions. The business unit has built unique digital solutions and categories, including BPaaS, Hyper-Personalized Care, Medicaid Redetermination, and Execution Management System (EMS), to drive future growth.
Firstsource stands out among BPM players as it caters to clients in both the Provider and Health Plans segments. Leveraging its deep understanding of the intricate information exchange between these segments, the Company simplifiesthe financial experience and optimizes outcomes for patients, hospitals, and health plans. By focusing on domain-driven investments in innovative digital solutions and intelligent operating models, Firstsource delivers a seamless, multi-channel end-to-end client experience.
Health Plan and Healthcare Services (HPHS)
According to an Everest Group report, the healthcare payer back office and front office (CXM) outsourcing penetration rates stand at ~20% and ~30% respectively in CY 2022 with total addressable market (TAM) of around $ 71 billion and $ 23 billion respectively. This growth is driven by key applications such as Claims Management, Front & Back Office Operations, Member Engagement, Billing & Accounts, Analytics & Fraud, HR services and Digital Intake. Firstsource recognizes significant business opportunities within the healthcare payer market. These opportunities include:
Claim Management Service
A significant amount of the workload and expenses for healthcare payers are related to the data-intensive process of claims management. Even while the digital age has streamlined processes, sped up turnaround times, and significantly reduced costs, claims processing inefficiencies continue to be an expensive service area. Firstsource has put significant focus on automation solutions and specially the advanced AI decision agents to reduce human intervention and improve accuracy of operations. The Company has also made investments to develop a Process Mining Center of Excellence (COE) that focuses on developing Digital Twin and Execution Management Systems to uncover hidden inefficiencies in the claims operations.
Firstsources Sympraxis platform enables automated claims operations, leading to enhanced accuracy, efficiency, and accelerated cycle times. This has contributed to an impressive overall claims processing accuracy rate of 99.8%.
Firstsource helped improve Claims Processing efficiency using Process Mining. The solution identified ~15% to 20% potential automation improvement without manual touch. Resulting in ~$ 2.5 million potential savings for the year by implementing the opportunities on the roadmap.
Business Process as a Service (BPaaS)
The BPaaS market is expected to be driven by accelerated digital interventions in vendor consolidation, care & planning, management & value chains, and broad adoption of BPaaS solutions. Firstsources Payer business focuses on the top 10 healthcare plans, strategically expanding its digital intake business and developing bespoke BPaaS solutions for mid-market healthcare plans. The Company has achieved remarkable success in this domain, securing a large-scale transformation project with a leading health insurance company. Through Firstsources Healthcare BPaaS, the client modernized outdated technology platforms, reduced operational and technology significantly improved member costs, and experience.
Firstsources Healthcare BPaaS solutions have delivered significant operational and cost benefits, including a ~30% reduction in administrative spends and an estimated 50% reduction in technology debt for a leading health insurance company.
Patient Engagement
The US patient engagement market is majorly driven by the rising adoption of digital health technologies, increasing consumerism, the impact of the pandemic, and supportive government initiatives. With the increasing prevalence of chronic illnesses and the demand for remote care, patient engagement solutions play a vital role in improving patient outcomes and reducing healthcare costs. These solutions facilitate effective interaction between patients and healthcare professionals, enable efficient healthcare information management, and enhance healthcare delivery. The web-based solutions segment dominates the US patient engagement solutions market. This growth highlights the increasing digital adoption by healthcare providers to engage with patients and improve the quality of care. Government initiatives and rising investments from industry leaders further contribute to the segments anticipated high growth rate.
Firstsources patient engagement solutions empower healthcare providers to improve patient outcomes, reduce costs, and enhance the quality of care in the evolving healthcare landscape.
Digital Intake
The pandemic has disrupted the healthcare industry and accelerated the need for digital transformation across the value chain. Health Plans must engage members and providers for a differentiated experience in an increasingly challenging healthcare environment. The frictionless interaction and delivering on "moments that matter" set a Health Plan apart. But the reality is that Health Plan clients face significant roadblocks in delivering these objectives due to the prevalence of manual back office processes, non-standard data intake processes, and human-intensive operating models.
Firstsources Digital Intake solution harnesses our experience processing over 3 billion pages, 350+ sort types, and 180 million claims data capture. It combines our purpose-built digital intake and data capture platform SympraxisR with intelligent process mining, industry-leading automation tools, and real-time dashboards to drive critical objectives.
Success story
The client: A top 10 US-based Healthcare Payer
The solution: Digital Twin of Claims Operations Firstsource successfully implemented a digital twin of claims operations to simulate operational conditions and evaluate the impact of improvement initiatives on key business metrics. This custom-built analysis identified opportunities, contributing to enhanced operational efficiency and
The result: Improved Efficiency and Cost Savings
The implementation of the Digital Twin of Claims Operations resulted in remarkable outcomes for our client. Firstsource achieved:
Improved Claims Processing Efficiency:.
Through streamlined workflows and reduced manual touchpoints, Firstsource enhanced claims processing efficiency by approximately 15% to 20%.
Potential Automation Improvement: Firstsource identified automation opportunities within the claims process, enabling potential cost savings and operational optimization.
Estimated Savings: By implementing the identified improvement opportunities, Firstsource projected potential savings of around $ 2.5 million for the year.
Firstsources digital twin of claims operations has enabled clients to identify and implement improvement initiatives, resulting in enhanced operational efficiency and improved outcomes.
Firstsource is making strategic investments in building new capabilities and solutions, exploring and expanding the scope of work with existing partner ecosystems that bring AI Decision Agent Ecosystem and Insights, Video-Based Vitals Monitoring, Process Discovery, Mining, Digital Process Twin, and other cutting-edge technologies.
Provider
The US Revenue Cycle Management (RCM) market was valued at $ 140.4 billion in CY 2022 and is expected to expand at a CAGR of 10.3% to reach $ 308.2 billion by 2030, according to Grand View Research. Outsourcing healthcare RCM solutions is on the rise due to the evolving healthcare industry, increasing healthcare expenditure, rising healthcare facilities, and a focus on the patient-provider relationship.
Firstsource Solutions plays a pivotal role in the RCM segment,severalofferingimprovement innovative solutions through the Firstsource Healthcare Cloud, combining digital-first approaches with a human touch. Our integrated solutions outcomes. cover the entire patient financial engagement value chain, offering flexibility for healthcare providers to deploy end-to-end solutions specificcomponents or choose based on their needs.
Key Provider Healthcare Trends
Public Health Emergency: Our Provider business has witnessed significant headwinds over the last couple of years due to the Public Health Emergency enforced by the US Government. As pertherecentGovernmentnotifications, the PHE was lifted on May 11, 2023 ending the continuous Medicaid enrollment provision that has been in place since 2020. This change is expected to result in an estimated 5 14 million people losing their Medicaid coverage. A large part of this segment is likely to be uninsured, a segment our Eligibility services and Patient access practices focus on. Firstsource has been actively engaged with health systems for several months ahead of the PHE end date and helping them transition smoothly.
Margin pressures: Health systems and hospitals are under immense margin pressures. Average operating margins haveremainednegativeoverallforalmostanentireyear,with signs that they may have brokeneven in April 2023. Several rural health systems have closed under the financial stress caused by the pandemic and its aftermath. Firstsource is offering its global delivery model, with centers and teams in India and the Philippines, to help health systems offset the increased cost of delivery using cheaper labor options in these locations.
Rising labor costs: tion continues to infla Rising wage plague health systems with wages rising across the board for physicians, nursing staff and other staff in non-clinical roles. This has been exacerbated by staff leaving the workforce, causing supply problems and wage increases in other businesses that compete for the same labor pool in each region. In medical coding for instance, the pandemic has raised the cost of onshore delivery, as well as restricted the availability of certified coders. Firstsource is helping health systems clear backlogs and streamline medical coding through offshore based certified coders. These critical services to health systems are available at a lower cost offshore and can be easily scaled to meet rising demand.
Drive to digital: Hospitals and health systems are increasingly trying to invest in digital “front doors” to service a patient population that, especially after the experience during the pandemic, is inclined to interact with the hospitals online and through digital means. Archaic patient contact methods such as letters and call centers or long wait times on hospital call center lines for simple things such as scheduling a visit or making a payment are no longer acceptable. In one survey, 66% of all healthcare CIOs said they are looking to improve their digital services for patients. Firstsource has leveraged its automation practice to help customers in areas such as pre-authorizations, claims status checks and Medicaid enrollment, besides extending such help to other hospital systems such as HR.
Our Healthcare Provider practice has also successfully launched several new services, including Medicaid Redetermination services for leading Provider-sponsored and hospital health systems across the US, a digital-only deal to perform robotic automation for a large regional health system and the establishment of offshore delivery centers for one of our top 10 hospital clients.
Communications, Media & Technology (CMT)
In response to the industrys digital transformation, clients are actively seeking partners capable of facilitating rapid scalability and ensuring exceptional satisfaction throughout their customer and merchant networks. Firstsource, a prominent player in the Communication, Media, and Technology (CMT) sector, specializes in delivering digital solutions that empower both CMT and Born Digital companies to provide seamless customer experiences across multiple channels. By forging strategic partnerships with key industry players, Firstsource assists in the creation and deployment of omnichannel customer management solutions. Leveraging its Digitally Empowered Customer Experience (DECX), Firstsource prioritizes end-to-end customer service excellence, leading to increased subscriptions and renewals while effectively managing acquisition costs.
Communication
The rise of digital natives has transformed customers expectations, presenting a challenge for traditional telecommunications companies. To address this challenge, Firstsource has undertaken a customer-led, customer-experience transformation. The Company is focusing on developing comprehensive support solutions for the communications industry, encompassing People, Process, and Technology.
The demand is primarily driven by the industrys increasing reliance on digital platforms, mobile technologies, and content targeted toward the youth demographic. Key drivers of this growth include transition to 5G technology, Internet of Things (IoT) applications, gaming, artificial intelligence (AI), cybersecurity, cloud-based communication services, and digital advertising. By leveraging data and transformative technologies, clients can enhance the resilience, productivity, and sustainability of their operations. This, in turn, strengthens the relationship with end users and presents opportunities for Firstsource.
In large economies with a substantial customer base, leading telecom service providers are adopting various tools and process enchancements to improve customer experience, reduce the time for query resolution, offer robust self-service alternatives to shift away from traditional channels. Firstsource recognizes the importance of deploying technology-led solutions that prioritize personalized customer experiences. This includes implementing self-service options such as online chatbots, interactive voice response (IVR), and mobile apps, as well as providing omnichannel support and proactive customer assistance. These innovations are poised to drive the growth and success of the Company.
Media
As internet usage continues to expand, there is an increasing demand for enhanced digital capabilities that go beyond traditional services. The media and entertainment industry is undergoing rapid evolution, driven not only by current corporate trends and disruptions but also by shifts in consumer behaviour. This has positioned the media and entertainment market as a crucial investment theme, with businesses seeking customized and innovative solutions to improve efficiencies and address scalability challenges, Firstsource has played a transformative role for its clients by offering scalable solutions that enable next-generation digital user experiences, cost savings, and innovation in business models. The Company is well-equipped to meet the growing demand for customer experience (CX) management in areas such as ad-review and compliance, as businesses increasingly rely on streaming platforms and social media for customer engagement.
The surge in content consumption is driving a significant increase in data usage. It is expected that there will be a shift in the types of content consumed, with a particular focus on addressing gaps and capitalizing on opportunities within the industry. The Company is also created a comprehensive playbook for at-scale traditional publishers to accelarate their transition to Digital Media and manage their customer engagement lifecyle. Within the Media segment, the EdTech sector is experiencing notable growth. According to Grand View Research, the EdTech market is projected to expand at a CAGR of 13.6% and reach a value of $ 348.4 billion between 2022 and 2030. The industry pivoted during COVID and today has become a significant channel for both learning providers and learners. Firstsource has identified this trend early and has developed several offerings over the last couple of years around learner care and content management.
Tech
In the rapidly changing Tech world, speed has been of essence. The pace at which newer technologies are evolving, it is imperative to develop new offerings and modernize existing to target this customer segment. These Tech firms are consuming and analyzing tremendous amounts of data to develop and scale their AI/ML models. According to Grand View Research, the global data annotation tools market was sized at $ 806 million in CY 2022, and it is projected to grow at a CAGR of 26.5% during the period of 2023-2030. Firstsource is well-positioned ws that focused on identifying to capitalize on these opportunities by providing clients with a comprehensive range of features, including video, image, and text annotation, as well as human-in-the-loop ML model training.
The increasing adoption of picture and video data annotation tools in industries such as IT, retail, and healthcare is a key factor contributing to this expansion. User generated content across platforms is growing at an unprecedented pace. These platforms are investing in capacities and capabilities to ensure that such content is appropriate and adheres to evolving regulatory requirements across all regions. Furthermore, these companies face the complex challenge of balancing the need to curb the dissemination of harmful content on their platforms while promoting innovation and preserving user freedom of expression.
To address these issues, Firstsource is placing increased emphasis on establishing Trust and Safety standards for content moderation. The Company is taking a comprehensive approach to prioritize the well-being of its human moderators and ensure a holistic approach to content management. By doing so, Firstsource aims to maintain a safe and conducive online environment while fostering innovation and user engagement. Firstsource is making significant investments in cutting-edge technologies such as AI, analytics and GigCX to capitalize on this growth opportunity.
Success story
Trust & Safety
Political commission raises content quality scores to 98%
The challenge: Managing the threat of malicious content at scale Measure and analyze the threat of violent extremism and terrorism across leading social media platforms Provide moderated data to train the customers AI/ ML model to automatically detect rogue content in real-time The solution: Talented trust and safety (T&S) experts and technology working together to mitigate risk Team worked with the client and their partners to develop a moderation process for all content types across leading social media platforms.
Developed risk at scale while streamlining operations to maximize the efficiency and effectiveness of the customers budget.
Drawing on the native language and cultural nuance skills of agents, and analyzed content in twelve different languages and curated a list of potentially malicious keywords, signs, and symbols. The data from this analysis was used to train ML-based classifiers and rules engines to detect any and all high-risk and potentially harmful content across five different platforms, in real-time, so that our skilled team of content moderators could step in and take appropriate action.
Tracked channel behavior and generated new insights to inform and enhance the political and economic commissions wider Trust & Safety initiatives to ensure a safer future for their citizens.
The results: Efficient and effective content moderation keeps citizens safe Firstsource combined the very best of automated content moderation technology with human experience and expertise to deliver outstanding results in record time: Over 1 Mn pieces of content moderated Quality scores of more than 98% for content search and validation
Delivered a 25% reduction in operating costs Insights generated are being used to shape the customers T&S strategy
Diverse
With the rising trend of digitalization and the growing demand for simplified one-click experiences from tech-savvy customers and citizens, public utility, and government entities are keen on enhancing their engagements. The Company specializes in assisting Utilities & Public Services by providing a holistic view of the customer journey and delivering personalized experiences across multiple channels.
Firstsource is proud to be a strategic partner in the utilities sector, where it provides comprehensive solutions to meet the evolving needs of businesses. The utility industry is known for its heavy reliance on resources and infrastructure. Utility firms struggle mightily to increase cross-selling opportunities, improve customer retention, and seize growing market opportunities. One approach to address these challenges is by outsourcing non-core functions, including IT, customer service, and supply chain management. This allows them to maintain reliable service levels while benefiting from a flexible cost structure.
The Company offers flexible operating models, redesigned CX strategies, and automations enabling our clients to heighten CX at every level by fusing a distributed workforce with an omnichannel customer engagement model, powered by Intelligent Automation (IA) and cloud-based platforms. Major focus areas include customer experience excellence, billing and collections, meter to cash operations, outage management, and regulatory compliance. With continuous efforts and expertise in the domain, the Company has achieved exceptional results for its utility clients with an increase of 35% in average cash collection, along with an 11% increase in volume of payments, resulting in 50% increase in overall collection.
Financial Performance Review
Shareholders Funds
The authorised share capital of the Company is 8,720.00 million with 872 million Equity shares of 10 each. The paid up share capital as of March 31, 2023 stands at 6,969.91 million compared to 6,969.91 million as of March 31, 2022. There is no increase in equity share capital. The Other equity of the Company increased from 23,359.53 million to 26,698.54 million. The details of increase in Reserves and surplus by 3,339.01 million are as below:
( in million)
| Increase on account of | |
| Profit for the year less appropriation | 5,084.44 |
| Employee stock option reserve | 137.33 |
| Treasury shares, net | 40.11 |
| Exchange Difference on consolidation of non-integral subsidiaries/entities | 1,633.69 |
| Decrease on account of Dividend (Net) | (2,384.45) |
| Adoption of amendment to Ind AS 37 (Net of deferred tax) | (783.41) |
| (Refernote33oftheconsolidated statements) | |
| Effective portion of cash flow hedges | (388.70) |
| Net Increase in Reserves and surplus | 3,339.01 |
Minority Interest
Minority interest is created on account of 74.0% consolidation of Firstsource Dialog Solutions (Private) Limited, Sri Lanka. Minority interest as of March 31, 2023 is 3.50 million as compared to 3.69 million as of March 31, 2022.
Long-term Borrowings
Unsecured long-term borrowings represent loan from banks and non-banking financial companies. Unsecured long-term borrowings outstanding as of March 31, 2023 were 1,393.66 million as compared to 2,733.02 million as of March 31, 2022. The net decrease was majorly on account of movement to current maturities of long term borrowings under short-term and other borrowings.
Deferred Tax Liabilities
Deferred tax liabilities as of March 31, 2023 were 1,195.98 million as compared to 959.02 million as of March 31, 2022. This is majorly due to deferred tax on provision for onerous contracts, accrued expenses and exchange translation adjustment during the year.
Lease Liabilities
Lease liabilities for the Company as of March 31, 2023 were 5,661.84 million and for March 31, 2022 were 7,740.42 million. The decrease is on account of repayment of lease liability and surrender of premises on lease in India and United States of America.
Provisions
Provisions represents provision for onerous contracts, gratuity and compensated absences liability to employees based on actuarial valuation done by an independent actuary. These provisions as of March 31, 2023 were 963.46 million as compared to 664.93 million in March 31, 2022. The increase in short term provisions from last year is due to provision for onerous contracts created during the year.
Short-term and other Borrowings
Short-term borrowings as of March 31, 2023 were 6,876.10 million as compared to 7,363.60 million as of March 31, 2022. The movement is on account of repayment of line of credit from banks.
Trade Payables
Trade payables as of March 31, 2023 were 2,314.46 million as compared to 1,780.59 million as of March 31, 2022.
Other Financial Liabilities
Other financial liabilities as of March 31, 2023 were 3,737.37 million as compared to 4,667.99 million as of March 31, 2022. The decrease in other financial liabilities is on account of fair valuation of liability for purchase of Non-controlling Interest and contingent considerations towards acquisition of business and payment of due liabilities.
Other Liabilities
Other current liabilities as of March 31, 2023 were 828.87 million as compared to 838.31 million as of March 31, 2022.
Goodwill
Goodwill as of March 31, 2023 was 29,449.76 million as compared to 27,207.95 million as of March 31, 2022. The increase in goodwill during the year was 2,241.81 million dues, risk due to restatement of non-integral foreign subsidiaries at year end exchange rate.
Fixed Assets
The net block of tangible assets, intangible assets and capital work-in progress and intangible assets under development amounting to 2,788.59 million as of March 31, 2023 as compared to 3,500.01 million as of March 31, 2022, resulted in a net decrease of the assets to the extent of 711.42 million.
This is majorly due to net additions of 481.78 million and exchange rate impact of 160.10 million and depreciation charge for the year amounting to 1,353.30 million.
Right of Use Assets
Right of use assets of the Company was 4,958.29 million on March 31, 2023 and 6,757.79 million on March 31, 2022. The net decrease is due to surrender of leases in India and United States of America and depreciation charge for the year amounting to 1,278.40 million.
Investments
The investments of the Company represent non-current investments of 115.59 million and current investments of 595.50 million as on March 31, 2023 as compared to 114.58 million and 1,185.38 million respectively as on March 31, 2022.
Deferred Tax Assets
Deferred Tax assets of the Company as of March 31, 2023 were 2,948.06 million as compared to 2,817.84 million as of March 31, 2022. This increase majorly is on account of increase in deferred tax of Business losses carried forward of 101.82 million and increase in deferred tax asset on cash flow hedges 75.58 million.
Income Tax Assets
Income Tax assets of the Company as of March 31, 2023 were 786.49 million as compared to 794.10 million as of March 31, 2022.
Other Non-current Assets
The other non-current assets of the Company as of March 31, 2023 were 1,025.95 million as compared to 1,153.86 million as of March 31, 2022. This decrease is due to movement of unexpired rebate from customer.
Trade Receivables Billed
Billed trade receivables amount to 6,800.47 million (net of provision for doubtful debts amounting to 515.50 million) as of March 31, 2023 as compared to 6,446.25 million (net of provision for doubtful debts amounting to 301.17 million) as of March 31, 2022. These receivables are considered good and realisable.
The need for provisions is assessed based on various factors including collectability of specific perceptions of the industry in which the customer operates and general economic factors which could affect Companys ability to settle claims. Provisions are generally made for all receivables outstanding for more than 180 days as also for others, depending on the managements perception of the risk. Debtors days as of March 31, 2023 (calculated based on per-day sales in the year) were 41 days, as compared to 40 days as of March 31, 2022. The Company constantly focuses on reducing its receivables period by improving its collection efforts.
Trade Receivables – Unbilled
Unbilled trade receivables amount to 3,584.40 million as of March 31, 2023 as compared to 3,159.06 million as of March 31, 2022.
Cash and Bank Balances
Cash balance represents balance in cash with the Company to meet its petty cash expenditures. The bank balances in India include both Rupee accounts and foreign currency accounts. The bank balances in overseas current accounts are maintained to meet the expenditure of the overseas subsidiaries and branches. The cash and bank balance as of March 31, 2023 was 1,515.40 million as compared to 828.20 million as of March 31, 2022. This increase in cash was due to cash generated from operating activities offset by cash used in payment of dividend, repayment of borrowings and repayment of other financing liabilities.
Other Financial Assets
Other Financial Assets as of March 31, 2023 were 528.20 million as compared to 1,065.22 million as of March 31, 2022. The decrease in these assets was on account of decrease in MTM on foreign currency forward contracts.
Other Current Assets
The other current assets of the Company as of March 31, 2023 were 1,506.78 million as compared to 1,986.46 million as of March 31, 2022. This decrease is majorly due to decrease in deferred contract cost and prepaid expenses.
Results of Operations
The table below sets forth, for the periods indicated, certain income and expense items for the Companys consolidated operations:
( in million)
| Particulars | FY 2022-23 | FY 2021-22 | ||
| million | % of income | million | % of income | |
| Income from services | 59,859.27 | - | 58,657.40 | - |
| Other operating income | 363.91 | - | 554.13 | - |
| Revenue from operations | 60,223.18 | 100.0% | 59,211.53 | 100.0% |
| Expenditure | ||||
| Personnel cost | 38,674.81 | 64.2% | 39,467.57 | 66.7% |
| Other expenses | 13,283.32 | 22.1% | 10,145.38 | 17.1% |
| Operating EBITDA (Earnings before Interest, | 8,265.05 | 13.7% | 9,598.58 | 16.2% |
| Tax and Depreciation) | ||||
| Depreciation and amortisation | 2,631.70 | 4.4% | 2,493.73 | 4.2% |
| Operating EBIT (Earnings before Interest and Tax) | 5,633.35 | 9.4% | 7,104.85 | 12.0% |
| Finance charges | 789.70 | 1.3% | 639.39 | 1.1% |
| Share in net (profit) / loss of associate | - | - | - | - |
| Other income | 1,308.50 | 2.2% | 5.55 | 0.0% |
| Profit before tax | 6,152.15 | 10.2% | 6,471.01 | 10.9% |
| Provision for taxation | ||||
| - Current tax expense | 657.63 | 1.1% | 741.55 | 1.3% |
| - Deferred tax Charge | 357.40 | 0.6% | 364.16 | 0.6% |
| Proft after tax before minority interest | 5,137.12 | 8.5% | 5,365.30 | 9.1% |
| Minority interest | (0.08) | 0.0% | (8.44) | 0.0% |
| Profit after tax | 5,137.20 | 8.5% | 5,373.74 | 9.1% |
Income
Income from Services
Income from services increased by 2.0% to 59,859.27 million in FY 2022-23 from 58,657.40 million in FY 2021-22. The Company attributes this increase in its income from services to addition of new clients and new business from existing clients. The average exchange rate for consolidation of subsidiaries for USD and GBP in FY 2022-23 was 80.27 per USD and 96.73 per GBP as compared to 74.46 per USD and 101.73 per GBP in FY 2021-22.
Consolidated Revenues by Segment
The Company serves clients for Banking and Financial Services, Healthcare, Communication, Media and Technology and Diverse Industries. Clients from Banking and Financial Services accounted for 42.9% (FY 2021-22: 49.5%), clients from Healthcare accounted for 33.5% (FY 2021-22: 29.2%), clients from Communication, Media and Technology accounted for 21.1% (FY 2021-22: 19.4%), clients from Diverse Industries accounted for 2.5% (FY 2021-22: 1.9%) of the income from services in FY 2022-23.
The following table gives a segment-wise breakdown of the income from services for the corresponding periods:
( in million)
| Particulars | FY 2022-23 | FY 2021-22 |
| Business Segment | ||
| Banking and Financial Services | 25,652.81 | 29,020.16 |
| Healthcare | 20,063.14 | 17,141.46 |
| Communication, Media and Technology | 12,644.53 | 11,406.94 |
| Diverse Industries | 1,498.79 | 1,088.84 |
| Total | 59,859.27 | 58,657.40 |
Consolidated revenues by geography
The Company serves clients in North America, UK and India. Clients from North America accounted for 65.9% (FY 2021-22: 69.2%), clients from UK accounted for 33.0% (FY 2021-22: 29.3%), clients from Asia and Rest of the World accounted for 1.0% (FY 2021-22: 1.5%). The following table gives a segment wise breakdown of the income from services for the corresponding periods:
( in million)
| Particulars | FY 2022-23 | FY 2021-22 |
| Geography | ||
| UK | 19,773.83 | 17,186.32 |
| US | 39,461.79 | 40,569.90 |
| Asia & RoW | 623.65 | 901.18 |
| Total | 59,859.27 | 58,657.40 |
Client concentration the following table shows the Companys client concentration by presenting income from the top client and top five clients as a percentage of its income from services for the periods indicated:
| ( in million) | ||||
| Particulars | FY 2022-23 | FY 2021-22 | ||
| Amount | % | Amount | % | |
| Client concentration to revenues | ||||
| Top Client | 9,184.28 | 15.3% | 9,097.68 | 15.5% |
| Top 5 customers | 22,272.82 | 37.2% | 22,253.82 | 37.9% |
| All clients | 59,859.27 | 100.0% | 58,657.40 | 100.0% |
In FY 2022-23, the Company had top client accounting for 15.3% of the income from services compared to top client accounting for 15.5% of its income from services in FY 2021-22. The Company derives a significant portion of its income from a limited number of large clients.
In FY 2022-23, the Company had 17 clients contributing individually over 500 million each in annual revenues as compared to 21 in FY 2021-22. In FY 2022-23 and FY 2021-22, income from the Companys five largest clients amounted to 22,272.82 million and 22,253.82 million respectively, accounting for 37.2% and 37.9% of its income from services respectively. Although the Company continues to increase and diversify its client base, it expects that a significant portion of its income will continue to be contributed by a limited number of large clients in the near future.
Other operating income
Other operating income of 363.91 million in FY 2022-23 (FY 2021-22: 554.13 million) includes exchange gain of on restatement and settlement of debtor balances and related gain / (loss) on forward/ option contracts as these transactions relate to the operations of the Company.
Revenue from operations
The Companys revenue from operations increased by 1.7% to 60,223.18 million in FY 2022-23 from 59,211.53 million in FY 2021-22 in rupee terms and grew by 1.1% in constant currency terms.
Expenditure
Personnel costs
Personnel costs decreased by 2.0% to 38,674.81 million in FY 2022-23 from 39,467.57 million in FY 2021-22, with the number of employees decreasing to 23,018 as of March 31, 2023 from 26,557 as of March 31, 2022. As on March 31, 2023, 10,623 employees were employed outside India and 12,395 employed in India as compared to 10,512 employees outside India and 16,045 employees in India as at end of FY 2021-22.
Other expenses
Other expenses for FY 2022-23 amounted to 22.1% of the income for that period, as compared to 17.1% of income in FY 2021-22. Operating costs increased to 13,283.32 million in FY 2022-23 from 10,145.38 million in FY 2021-22. This increase is majorly due to increment in operating expenses with high variability.
Operating EBITDA (Earnings before Interest, Tax and Depreciation)
As a result of the continuing operations, operating EBITDA decreased by 1,333.53 million to 8,265.05 million in FY 2022-23 from 9,598.58 million in FY 2021-22. Operating EBITDA in FY 2022-23 is 13.7% of income as compared to 16.2% in FY 2021-22.
Depreciation
Depreciation costs for FY 2022-23 amounted to 4.4% of the income for that period, as compared to 4.2% in FY 2021-22. Depreciation increased year-on-year to 2,631.70 million in FY 2022-23 from 2,493.73 million in FY 2021-22.
Operating EBIT (earnings before interest and tax)
Operating Earnings before Interest and Tax (EBIT) decreased by 1,471.50 million to 5,633.35 million in FY 2022-23 from 7,104.85 million in FY 2021-22. Operating EBIT in FY 2022-23 is 9.4% compared to 12.0% in FY 2021-22.
Finance cost
Finance cost for FY 2022-23 amounted to 1.3% of income for that period, as compared to 1.1% of income in FY 2021-22. Finance charges increased to 789.70 million in FY 2022-23 from 639.39 million in FY 2021-22.
Other income
Other income of 1,308.50 million in FY 2022-23 includes other miscellaneous income (net) of 1,285.03 million which includes 955.24 million and 386.91 million for the year ended March 31, 2023 on account of changes in the fair value of contingent considerations and liabilities for purchase of non-controlling interest respectively, profit from the sale/redemption of current investments of 47.54 million, interest income of 10.34 million offset by loss on sale of fixed assets of 7.20 million and foreign exchange loss of 27.21 million.
Proft before tax
Profit before tax decreased to 6,152.15 million in FY 2022-23 from a profit 6,471.01 million in FY 2021-before tax in FY 2022-23 was 10.2% of the income, 22.Profit as compared to 10.9% of the income in FY 2021-22.
Provision for taxation
Provision for taxation amounted to 1,015.03 million in FY 2022-23 and 1,105.71 million in FY 2021-22. Income tax expense comprises of current tax, net change in the deferred tax assets and liabilities in the applicable FY period and minimum alternate tax credit. Current tax expense comprises tax on income from operations in India and foreign tax jurisdictions. The Company had the benefit of tax-holiday under Section 10AA under the Special Economic Zone scheme in India.
Current tax expense amounted to 657.63 million in FY 2022-23 and 741.55 million in FY 2021-22, and deferred tax charge of 357.40 million in FY 2022-23 and deferred tax charge of 364.16 million in FY 2021-22.
Proft after tax before minority interest
As a result of the foregoing, profit after tax before minority interest decreased to 5,137.12 million for FY 2022-23 from profit after tax before minority interest of 5,365.30 million in FY 2021-22.
Minority interest
Minority interest is (0.08) million in FY 2022-23 as compared to (8.44) million in FY 2021-22.
Proft after tax
As a result of the foregoing, profit after tax amounted to 5,137.20 million in FY 2022-23 and profit after tax of 5,373.74 million in FY 2021-22. Profit after tax in FY 2022-23 was 8.5% of the income, as compared to 9.1% of the income in FY 2021-22.
Liquidity and capital resources cash flows
The Company needs cash to fund the technology and infrastructure requirements in its operation centres, to fund its working capital needs, to pay interest and taxes, to fund acquisitions and for other general corporate purposes. The Company funds these capital requirements through variety of sources, including cash from operations and short and long-term lines of credit. As of March 31, 2023, the Company had cash and cash equivalents of 1,515.40 million. This represents cash and balances with banks in India and abroad.
The Companys summarised statement of consolidated cash flows is set forth below:
Operating activities
Net cash generated from the Companys operating activities in FY 2022-23 amounted to 7,950.23 million. This consisted of net profit before tax of 6,152.15 million and a net upward adjustment of 1,689.02 million relating to various non-cash items and non-operating items including depreciation of 2,631.70 million; net increase in working capital of 764.98 million; and income taxes paid of 655.92 million. The working capital change was due to increase in trade receivables of 964.92 million, decrease in loans and advances by 708.07 million and increase in liabilities and provisions by 1,021.83 million.
Net cash generated from the Companys operating activities in FY 2021-22 amounted to 7,035.58 million. This consisted of net profit before tax of 6,471.01 million and a net upward adjustment of 3,393.90 million relating to various non-cash items and non-operating items including depreciation of 2,493.73 million; net decrease in working capital of 1,884.47 million; and income taxes paid of 944.86 million. The working capital change was due to increase in trade receivables of 457.28 million, increase in loans and advances by 22.39 million and decrease in liabilities and provisions by 1,404.80 million.
Investing activities
In FY 2022-23, the Company generated 163.53 million of cash from its investing activities. These investing activities included capital expenditure of 536.22 million, including fixed assets purchased and replaced in connection with the Companys operation centres in the UK, the US and India and net purchase of money and debt market mutual funds amounting to 637.42 million.
In FY 2021-22, the Company used 5,945.78 million of cash from its investing activities. These investing activities included capital expenditure of 850.30 million, including ed assets purchased and replaced in connection with fix the Companys operation centres in the UK, the US and India and 5,067.14 million towards acquisition of business and net purchase of money and debt market mutual funds amounting to 329.31 million.
Financing activities
In FY 2022-23, net cash used in financingactivities amounted to 7,433.82 million. This comprised of repayment of long term borrowings of 424.96 million, proceeds from long term borrowings of 50.49 million, repayment from short term borrowings of 1,976.69 million. The Company paid towards purchase of Non-controlling Interest in a subsidiary of 276.40 million, interest of 787.42 million, purchase of treasury shares of 139.58 million. During the year, the Company also paid dividend of 2,384.45 million to its shareholders and repaid lease liability of 1,494.81 million.
In FY 2021-22, net cash used in financingactivities amounted to 1,579.61 million. This comprised of repayment of long term borrowings of 1,546.16 million, proceeds from long term borrowings of 3,008.05 million and proceeds from short term borrowings of 2,442.74 million. The Company paid towards purchase of Non-controlling Interest in a subsidiary of 887.28 million, interest of 580.44 million, purchase of treasury shares of 462.66 million. During the year, the Company also paid dividend of 2,383.96 million to its shareholders and repaid lease liability of 1,169.90 million.
Cash position
The Company funds its short-term working capital requirements through cash flow from operations, working capital overdraft facilities with commercial banks, medium-term borrowings from banks and other commercial financial institutions. As of March 31, 2023, the Company had cash and bank balances of 1,515.40 million as compared to 828.20 million as of March 31, 2022.
Key fnancial ratios
| Ratios | FY 2022-23 | FY 2021-22 |
| Debtors Turnover | 8.80 | 9.10 |
| Current Ratio | 0.9 | 0.9 |
| Debt Equity Ratio | 0.2 | 0.3 |
| Interest Coverage | 8.8 | 11.1 |
| Operating EBITDA | 13.7% | 16.2% |
| Operating EBIT | 9.4% | 12.0% |
| Net Profit Margin | 8.5% | 9.1% |
Table presents key financial ratios, as applicable, for Firstsource Solutions Limited. The change in Debt to Equity ratio is significant, as defined under the amended SEBI (LODR) Regulations i.e. over 25% compared to previous year. The debt equity ratio has decreased due to reduction in debt during the year.
Human Resources
At Firstsource, the primary objective is to build an organization where employees can truly live their purpose. The Company continuously strives to create a workplace that fosters accountability, inclusion, and innovation, allowing every employee to participate to their full capacity. Firstsource firmly believes that by cultivating an environment where our employees can find meaning in their work and align their personal purposes with the organizations larger mission, can unlock their full potential and drive organizational success.
The Companys goal is to create a positive impact in the world through its work, and the Company believes that its people and core values are critical to achieving this. The Companys values, known as REACCH - Risk-taking, Execution excellence, Agility, Customer-first, Credibility, and Humaneness - are deeply ingrained in its culture, serve as a guiding principle for every action the Company takes. These values guide the Company in everything it does, whether serving the clients, working with the employees, or supporting the communities that surround it.
Firstsource believes that its people strategy is a reflection of its values, which serve as a moral compass for all its actions and decisions. Keeping this in mind, the Company has designed a people strategy anchored on four pillars that guide its people practices. The Company believes that by aligning the HR strategy with its core values, it can attract and retain employees who share the principles and beliefs, thereby leading to a more engaged and productive workforce.
i. Partnering for business growth
This represents Firstsources commitment to attract top talent, expand its reach to new regions, and strengthen its ability to serve clients worldwide. It has achieved this through a series of targeted initiatives, such as establishing nearshoring and satellite locations to broaden its talent access, streamlining recruitment processes via a global hiring model to attract the best candidates from around the world, and leveraging its employer value proposition and brand to deliver a distinctive candidate experience that resonates globally. Additionally, the Company has harnessed the power of innovative hiring practices, including impact sourcing, apprenticeships, campus recruitment, and inclusive hiring, to tap into a diverse pool of candidates and create a more inclusive workforce.
ii. Delivering meaningful employee experiences digitally
This is a testament to the Companys agility and people-centric approach to adapting to the ever-changing needs of its workforce. By leveraging DFDN (Digital First, Digital Now) to enhance employee experiences and prioritizing the customer-first mindset, Firstsource creates a culture of credibility, positioning ourselves as an employer of choice. By digitizing employee experiences, the Company also streamlines, reduce manual effort, and improve overall efficiency.
iii. Activating purpose
This embodies its commitment to the larger community, and the values that drive the organization. Firstsource recognizes that people work for a variety of reasons, and the Company believes that aligning an individuals purpose with the organizations purpose is essential for driving engagement, motivation, and overall success. The Company focuses on helping employees find deeper meaning in their work by realizing that this sense of purpose is vital for both individual and organizational growth. By creating a culture that values purpose and aligns individuals goals with the organizations vision, the Company aims to foster a sense of shared responsibility and drive long-term success.
iv. Building managerial and leadership capability
This represents the Companys focus on strengthening employee skills and building leadership capacity throughout the organization. By prioritizing the development of its leaders, the Company is not only investing in their growth but also in the future of its business. Through enhanced skills and knowledge, the leaders are able to drive positive change in people and processes, leading to exponential value creation across the entire organization. With a strategic focus on leadership development, the Company is able to position itself for long-term success, ensuring that the business remains adaptable, resilient, and competitive in the face of ongoing changes. The Company is confident that prioritizing its people allows us to attract, develop, and retain top talent and drive its business forward in a rapidly changing environment.
I. Partnering for Business Growth
As of March 31, 2023, Firstsource had 23,018 employees, reflecting a year-on-year decrease of 3,539 employees compared to 26,557 employees on March 31, 2022. Amidst the persistent macroeconomic challenges in the Mortgage business that have led to a net decrease in headcount, the Company remains strategically focused on building a strong foundation for long-term success. In line with this, the Company is directing its investments towards talent development in high-growth areas such as Healthcare, CMT, and BFS. This will position Firstsource to increase its market share and enhance its competitive advantage, even in the face of uncertain economic conditions. With a sharp focus on investing in high-growth areas and building a solid foundation for long-term success, Firstsource is poised for sustainable growth in the coming years.
Focussed on growth
Opening of new centre in Mexico
With a fully operational center in Mexico and several clients already onboarded, the Company is confident in its decision to nearshore to Mexico. Furthermore, the interest from other potential clients highlights the growing trend of nearshoring to Mexico as a strategic move that can offer several benefits to
Satellite locations and nearshore centers around UK
In pursuit of sustained growth, Firstsource exploring the potential of additional nearshore centers that offer significant advantages. The Company is taking strategic steps to gain a deeper understanding of its clients requirements including access to a highly skilled and diverse talent pool, a favorable business environment, and a shared time zone with many of our key clients. Nearshoring offers these advantages and by leveraging them, the Company aims to enhance service offerings, improve operational efficiency, and increase client satisfaction.
Firstsource has established satellite locations in Manchester and Birmingham through co-working with plug & play. These locations provide a competitive edge by expanding the in-office talent pool without the need for significant capital expenditures. This strategic move also mitigates the risk of competition in existing permanent sites in Middlesbrough.
By leveraging nearshore centers and strategically expanding its presence, Firstsource is well-positioned to drive growth and remain competitive in the marketplace. The use of satellite locations and coworking spaces not only provides access to a wider talent pool but also offers flexibility and cost savings.
New office in Philippines
In the Philippines, the Company has successfully transitioned to its new office in Makati City, Manila, which currently supports clients in the Mortgage, Europe, and Healthcare Business Units. This new office is a crucial step towards establishing a central hub for the expanding global business operations, reflecting our continued growth in the country.
Three-site location strategy (Europe Business)
The Companys business in Europe has experienced an exceptional growth trajectory, driven by the trust and confidence clients have placed in capabilities, leading to a greater volume of business with them. While Mumbai and Bangalore have been the cornerstones of the growth strategy, the Company recently expanded to a third site in Hyderabad, marking its commitment to expanding its presence across India and tapping into talent pool beyond these key locations. The decision to expand to Hyderabad is a deliberate part of the growth us.strategy for Europe business, and the three-site location strategy allows the Company to harness a larger talent pool, further bolstering its presence in the region.
Seamless people transition during recent acquisitions
The seamless integration of ARSI into the organization has been a key driver of success for the Collections team during the year. By leveraging the expertise of the dedicated HR team, the Company ensured that every employee was quickly acclimated to the Firstsource culture, vision, and values. The Company is excited to continue leveraging the strengths of its newly integrated colleagues. working together as a cohesive and unified team to success for our organization.
Streamlining recruitment through global hiring model
Firstsources global hiring model aims to build scalable and consistent recruitment processes, enhance overall accountability, and break down traditional functional silos. The hiring processes are tailored to the BUs by individual business leaders which are regularly reviewed and iterated through the use of analytics and a continued focus on return on investment.
The Companys hiring teams achieved a remarkable milestone by recruiting a total of 5,346 individuals globally (since April 2021) through the Impact Sourcing model. This model provides learning and career development opportunities to disadvantaged and under-served communities. The teams dedication to hiring targets is a testament to the commitment to deliver exceptional value to business, and the Company is confident that its focus on top talent acquisition will continue to fuel its growth.
These achievements are the result of the Companys sharp focus on executing its global hiring model, which incorporates robust policies, practices, and technologies to identify, assess, and acquire the best talent from around the world.
Global Talent Acquisition Strategy
The comprehensive Global Talent Acquisition Strategy forms the cornerstone of the Companys success. Built on the foundation of a skilled team and guided by robust policies, processes, practices, and compliances, the strategy is designed to ensure that the Company attracts, acquires and integrates top talent across the organization.
The hiring strategy is based on four key dimensions:
1. ASSESS
Talent Requirement:
The Company meticulously analyzes talent requirements through a robust recruiting technology platform and gains access to talent pools via a multi-channel sourcing strategy. The Companys agile, user-friendly process ensures that it invite candidates who are the perfect match for current and future business plans.
2. ATTRACT
Talent:
The Company goes beyond traditional recruitment practices and proactively networks with both passive and active candidates, offering a seamless candidate experience from application to joining. The employer branding, social media campaigns, impact sourcing initiatives, employee advocacy programs, and digital candidate experience are all designed to attract top talent.
3. ACQUIRE
Best-in-Class Talent
The Company assess the candidates potential and culture fit through secure and scalable digital assessments, using aspiring minds and other interview tools/techniques. The Company leverages the latest digital technology solutions to automate recruitment processes to ensure that it acquires top talent from around the world seamlessly.
4. ACCLIMATIZE
Talent:
The Companys commitment to nurturing its employees extends beyond recruitment, and the Company has implemented a Step Aboard program that integrates new employees into the organization. The Companys digital onboarding program and engagement surveys on Qualtrics help it ensure that the employees have the tools, resources, and knowledge to become successful and productive members of the team
Leveraging the EVP and employer brand globally to deliver compelling experiences
In FY 2022-23, the global talent acquisition teams successfully executed several interventions to reinforce the employer brand and enhance the candidate experience. These initiatives have resulted in a more refined approach to talent acquisition further bolstering the Companys reputation as an employer of choice.
1. The Company has leveraged its employee value proposition to strengthen the employer brand and promote advocacy, with a particular focus on amplifying the refreshed employer brand around the "Everyone is Welcome" theme to ensure visibility with the right talent pool. To achieve this, the Company has created more visibility through marketing channels and increased social media activitythrough the creation of "Employee Advocacy Groups."
2. The Companys recruitment channels have been reinforced through impactful campaigns, attractive incentives for iRefer (employee referral) channels, and a revised global referral policy for better visibility and awareness. The Company has also assessed and leveraged social channels such as Snapchat, Instagram, Facebook, and TikTok.
3. The Company focussed on delivering an engaging experience for its candidates by leveraging authentic content online (social channels and website) including stories and case studies from current employees.
4. The Company has conducted targeted candidate marketing campaigns, specifically for graduates, single parents to reflect the aspirations and needs of its workforce.
5. The Company has also evaluated and added new job boards for new and existing locations to meet the surge in demand and assessed and onboarded new suppliers for new locations..
Building a talented and diverse workforce
A diverse and highly talented workforce is key for the Company to achiev sustained business growth. Firtsource imbibes policies and practices within the organization to create a diverse and inclusive workforce to encourage thought and creative diversity. As a forward-thinking organization, the Companys has implemented a range of strategic hiring initiatives that prioritize diversity, inclusion, and career development opportunities for disadvantaged communities, while attracting top talent from diverse backgrounds.
1. Impact Sourcing:
The Company has utilized the Impact Sourcing model to provide learning and career development opportunities to disadvantaged and under-served communities. This approach has enabled us to hire a total of 5346 individuals across India, the US, and the UK since April 2021, including those hired under the Work Opportunity Tax Credit (WOTC) program in the US, or from Tier 2 and Tier 3 locations.
2. Inclusive hiring:
The Company has hired two all-women groups, totaling 30 employees, across Mumbai and Bangalore since October 2021. In the Philippines, the Company demonstrated its commitment to hiring from the LGBTQIA communities by hiring one group of 21 employees, and 6 more individuals on a contract basis.
3. Apprentice Programs:
To further develop the skills of the workforce, the Company sponsors apprenticeship programs in the UK and India. The Companys partnership with Northern Skills in Middlesbrough, an accredited apprenticeship organization, has enabled us to hire apprentices and provide them with regular coaching and mentoring opportunities to develop their skills while earning a wage.
In India, the Company has hired 350+ FTEs under the National Apprenticeship Promotion Scheme (NAPS) and the National Apprentice Training Scheme (NATS) run by the government.
4. Campus Hiring:
Finally, as part of our recruitment strategy, we have enabled campus hiring as an important channel to attract young talent aspiring to excel in their careers. With tie-ups with over 20 campuses, we initiated several hiring drives to identify and hire the best and brightest students to join our team in FY 2022-23.
Results of our initiatives
5,346 individuals hired across India, the US, and the UK since April 2021, including those hired under the Work Opportunity Tax Credit (WOTC) program in the US, or from Tier 2 and Tier 3 locations through the Impact Sourcing Model.
Hired two all-women groups, totaling 30 employees, across Mumbai and Bangalore since October 2021. In the Philippines, the Company demonstrated its commitment to hiring from the LGBTQIA communities by hiring one group of 21 employees, and 6 more individuals on a contract basis. In India, the Company hired 350+ FTEs under the National Apprenticeship Promotion Scheme (NAPS) and the National Apprentice Training Scheme (NATS) run by the government.
II. Delivering Meaningful Employee Experiences Digitally
HR technology
A digitally enabled, integrated experience across the employee lifecycle, through the launch of FirstPlace.
In an ever-changing, fast-paced, dynamic business environment, Digital First, Digital Now (DFDN) helps ensure that Firstsource is agile in its solutions, quick in execution, and at pace with the latest technologies. Enabling the DFDN experience to progress internally, the Company launched FirstPlace in January 2023, a Human Capital Management (HCM) platform that offers an integrated interface for all HR processes and elevates the end-to-end people experience across business units and geographies. The platform is built on SAP SuccessFactors the worlds leading HCM that enables organizations to manage employee lifecycles, with KPMG as the implementation partner.
The platform offers self-service tools with great features like single sign-on, guided workflows, notifications, collaboration, and rapid resolution of queries. A single point of access for all employee information enables seamless transactions and mobile access to connect anytime, anywhere, and simpler tools that provide great user experiences for employees, managers, and candidates.
FirstPlace supports more than 23,000+ Firstsourcers across 5 countries. The implementation of the platform had been planned in 2 phases with Phase 1 going live in January 2023. The modules included Employee Central, Recruiting Management, Onboarding, Offboarding, Service Center & SAP JAM. To enable seamless transition to FirstPlace, champions across businesses and geographies were identified. Extensive training, communications, persona-wise modules on how to navigate the platform as well as quick action on feedback received have helped the Company reach an 80% adoption i.e., more than 18,500+ employees have logged in and used the platform via Web/Mobile.
Currently, Firstsource is working on Phase 2 implementation which includes modules like Performance & Goal Management, Learning Management System, Compensation Management, Succession Planning & Career Development which will go live in the first half of FY 2023-24.
Fostering a culture of recognition
As the world becomes more dynamic, it is crucial to provide employees with the tools and resources they need to connect, recognize each others contributions, and support each other. To achieve this goal, Firstsource partnered with Vantage Circle, the Companys rewards and recognition partner, to integrate the Vantage Circle Application with Microsoft Teams. This integration will help provide employees with a user-friendly, streamlined rewards and recognition platform, enabling them to engage with their colleagues seamlessly. Firstsources employees can now recognize their peers contributions instantly and provide timely feedback, thereby fostering a culture of appreciation and recognition. Furthermore, this integration will enable us to enhance our user experience and drive better engagement across the organization.
Harnessing technology and Artificial Intelligence (AI) for high impact hiring
In FY 2022-23, the Company initiated a pilot program for Smart Interview on Demand (SIOD) across the UK and India. This AI-powered asynchronous video interviewing process enables smart screening through recorded video interviews helping identify top talent faster. Apart from the ease of use, this AI-based scoring enables evaluating candidates social skills (confidence, composure & confidence) along with assessing workplace competencies.
SIOD provides convenience and flexibility to candidates and evaluators, while also saving time and cost. It also simplifies the interview process for recruiters through easy scheduling and tracking, while standardizing evaluations using pre-defined optional AI scoring system.
Firstsource recognizes the importance of employee referrals as a critical channel for hiring top talent. To further optimize with potential candidates, the Company has recently deployed WhatsApp as a preferred communication channel for the recruitment team in the UK. WhatsApp enables the team to engage in real-time and facilitates two-way conversations with referred candidates, seamless exchange of CVs and references, while also expediting and elevating the quality of initial interactions. This has resulted in an increase in referral numbers and has effectively addressed issues pertaining to delayed responses, thereby improving the overall candidate experience.
WhatsApp enables engagement in real-time, facilitates two-way conversations with referred candidates and seamless exchange of CVs and references, while also expediting and elevating the quality of initial interactions.
Additionally, we embarked on a journey to help expedite the CV shortlisting process by using cutting-edge technology such as machine learning. By automating the CV shortlisting process, we aim to free up valuable time for our recruiters, allowing them to focus on building meaningful relationships with potential candidates and delivering a superior hiring experience.
Leveraging next-gen technology (Metaverse & Powerbot) to enhance employee experience
In a world where digital experiences are rapidly evolving, the concept of the Metaverse promises to revolutionize the way we interact with technology. Firstsource recognizes the importance of staying ahead of the curve and embracing new opportunities for growth and innovation. Therefore, decided to explore the potential of Metaverse as a platform for a New Hire Induction program. After partnering with Gmetri and conducting a POC in the second half of the year, the Company is proud to report that the immersive experience was a resounding success.
Through the use of cutting-edge technologies like 3D world creation, 360 panoramas, and virtual reality, Firstsource was able to create a truly interactive and engaging experience for new joiners. They were able to explore a gamified environment guided by a virtual buddy, making the onboarding process more fun and memorable. By leveraging the power of the Metaverse, the Company create a truly immersive experience that will not only enhance the onboarding process but also set the tone for the organizations commitment to innovation and growth.
To stay ahead of the curve in the constantly evolving technological landscape, Firstsource also piloted a PowerBot in both the UK and the US to reinforce desired leadership behaviors. The PowerBot provides gentle nudges to employees to encourage them to maintain the highest standards of leadership behavior, thus paving the way for the next generation of tech-enabled leadership.
Employee engagement and survey
Firstsource believes in nurturing a work environment where employees feel valued and heard. To achieve this, the Company has implemented a robust survey program that enables it to actively listen to employee feedback and insights. By doing so, it can foster a culture of continuous improvement, where every employees voice counts, and their contributions lead to positive and meaningful changes.
The survey program utilizes the Qualtrics platform, launched in 2021, to administer surveys at various stages in the employee journey. This enables the Company to gather feedback on key employee engagement and experience drivers.
Lifecycle surveys are particularly useful for measuring and monitoring engagement at various intervals in the journey of an employee from Hire to Retire. These surveys are launched automatically through Qualtrics, on the predefined employment milestones for respective employees. The Company enhanced awareness, reach and participation in these surveys, through refresher and orientation sessions, a dedicated microsite, and by introducing Lifecycle surveys as part of onboarding modules.
Firstsource believes meaningful employee surveys can foster positive changes in the workplace. To replace the annual Global Employee Survey (GES), it launched a tri-annual Pulse survey in May 2022. This allows the Company to provide employees an opportunity to share their thoughts on better ways of working. The Pulse survey aims to keep Firstsource connected to the pulse of its people by seeking meaningful insights and implementing changes in line with the feedback received.
The Pulse survey helps assimilate feedback around two broad areas:
Engagement indices like Trust, Recognition, Growth and Development; Resources & Work environment, Work Life Balance, Communication, Intent to Stay, and
Organization-wide initiatives like Employee Wellbeing, Inclusion & Diversity (I&D), and Corporate Social Responsibility (CSR).
Firstsource launched the tri-annual Pulse survey in May 2022 to seek meaningful insights and implement changes aligned to employee feedback.
The Company has successfully conducted three Pulse surveys in the months of May and September 2022 and February 2023. Employees were given an opportunity to share their experiences and feedback aligned to the drivers, thrice during the year. Additionally, campaigns communicating actions taken/implemented based on survey feedback were shared through a series of “Your Ask. Our Commitment” mailers to demonstrate the impact of their feedback.
Talent integration
As a progressive and innovative organization, the Company that the onboarding experience is a pivotal moment that can determine the trajectory of a new hires career. To optimize this process, Firstsource has implemented the Step Aboard framework, which has allowed it to refine and enhance its onboarding program to create a seamless and structured journey for new employees. The program has redesigned the
New Hire Orientation content to ensure that employees are equipped with the necessary tools and knowledge to hit the ground running from day one.
Moreover, the Company has successfully migrated its onboarding process to the FirstPlace platform, which provides an exceptional digital onboarding experience to all new joiners. Leveraging the platforms advanced features, such as "nudges," the Company has enabled lateral and leadership hiring managers to connect with new joiners before their start date, suggest key contacts, and assign a buddy to foster a sense of community and belonging. By adopting cutting-edge technology and best practices, the onboarding program reflects Firstsources commitment to providing a supportive and engaging work environment for all employees. Nurturing and unlocking the potential of the next generation of employees is essential for driving growth.
Effective onboarding is the key to unleashing the fullest potential of young and aspiring talent.
Fueling growth for talent: Onboarding young minds
In FY 2022-23, Firstsource made significant strides in its Management Trainee (MT) program, hiring its largest cohort of 52 trainees from 16 of Indias top business schools. These exceptional individuals were recruited across key functions, ensuring a deep pool of talent to drive the business forward. The onboarding process was carefully crafted to enable the new MTs to kickstart their careers with the right mindset. Beginning with a rigorous virtual bootcamp, they interacted with various leaders across geographies, gaining valuable insights into the Companys operations and culture. The program provided a forum for MTs to experience and understand the Firstsource ethos, preparing them to embody its values and contribute to the organizations success. The exceptional talent onboarded through the MT program is a testament to the Companys commitment to building a strong and diverse team. Firstsource is confident these new hires will continue to drive innovation, organization in the coming years.
Talent engagement
Employee recognition
Workplace recognition motivates employees and makes them feel valued for their work. Besides, the accompanying sense of pride and self-worth it is also proven to be a driving force in helping employees re-energize and outperform. Recognition emerged as one of the dominant asks in the Companys first Pulse survey results where employees shared that they wanted to be recognized more often.
With an aim to enthuse employees to vocalize their appreciation towards their co-workers more frequently and intuitively, Firstsource launched a recognition campaign called “#AppreciationAmplified” in September 2022. The campaign focused on a specific recognition theme each month, to make it easier for employees to appreciate colleagues, leaders, managers and co-workers who demonstrate qualities and behaviors aligned to the theme. Along with leveraging the First Reward platform to appreciate colleagues by sharing performance and behaviour-based non-monetary badges, the campaign also included elements like sharing employee stories and monthly fun activities in line with the theme of the month and quarterly recognition of winners with the andgrowth across highest appreciation. The results have been quite heartening, with overall 12,844 appreciations received.
Employee engagement
The Companys commitment to employee engagement is evident through a wide range of initiatives and programs implemented across different locations and business units with a focus on nurturing and supporting employees with continuous training, development, engagement and wellness initiatives.
Key Initiatives
Established employee pods for the Provider business (US) with a subject matter expert (SME) to provide more focused training, enhance engagement, and improve retention.
Launched a new Supervisor to Managerial development program called SIM Stepping into Management - aimed at identifying and nurturing talent from within the organization.
Programs like Connectometer have provided a comprehensive understanding of employee and supervisor connections, helping identify and tackle areas of concern.
Established Employee Advisory Councils in India, to ensure that employees feel heard and included in the decision-making process.
Additionally in India, the HPHS team benefited from exciting interventions throughout the year, such as IMPRINTS to reward top performers, volunteering opportunities across all sites, milestone celebrations, festivals, and sports and fun days. Launched a UK-wide initiative, #WalkThisMay to promote holistic wellness by encouraging daily walking among employees. The initiative focused on enhancing both physical health and wellbeing while fostering a sense of camaraderie and teamwork.
Global Leadership Awards
The Global Leadership Awards (GLA) are the largest forum to recognize and celebrate the achievements of leaders for their extraordinary contributions towards the business. Each year, the endeavour has been to make these awards inclusive and more meaningful. The successful launch of the Global Leadership Awards 2.0 in July 2021 garnered a lot of sponsorship and support from the leadership. To further elevate the experience, the GLA team the award categories sharpened (both Individual and Team) to make the contributions more distinct and differentiable. Having received 78 nominations across 11 awards in the Individual and Team Award categories, GLA celebrated the achievements of 19 Individuals and 24 the high performing teams through a grand global virtual felicitation event conducted on February 28, 2023. The event was delivered seamlessly and garnered a lot of positive comments from the audience/winners.
Group Awards:
As part of the Group Foundation Day celebrations, the RPSG Group annually recognizes high performers across four categories Outstanding Achiever Award, Young Achiever Award, Top Gear Award and Core Value Champion Award. These awards are designed to honor and recognize managers who can make a significant contribution to the success of the organization by consistently exceeding or going beyond their job requirements. In addition, the Group recognizes employees across all its companies for their outstanding performance in ‘Sangeet Sitara, a talent show. Having gone through a structured and rigorous nomination and screening process, 8 of our employees won Group awards across different categories and were recognized for their extraordinary contributions towards the success of the organization.
Talent retention
The Company strives to implement a sustainable employee retention strategy and is pleased with the progress it has made so far. Its ongoing focus on enhancing people leader capability, improving onboarding experience, building a flexible working model, providing a seamless digital employee experience, leveraging its location strategy, and aligning wages with market rates and job complexity are key components of its continued journey.
Total rewards
The Companys rewards philosophy aims at driving performance by aligning elements such as
Key focus areas
1. Enhancing people leader capability - By enabling our leaders to deliver a meaningful employee experience and drive performance in their teams and foster a ulture of leadership that values and drives performance through deliberate & consistent practice of people leadership behaviors 2. Improving onboarding experience for new employees - By providing a consistent and personalized onboarding experience and identification of specific touchpoints throughout the employee lifecycle to ensure meaningful engagement and support.
3. Building a flexible working model - By enabling flexibility and part-time options to accommodate a variety of workstyles and attract a wider talent pool, including gig workers and freelancers.
4. Providing compelling digital employee experience that improves productivity, engagement, and retention - By leveraging technology and digital tools and create a seamless and efficient work environment for employees.
5. Leveraging location strategy for talent recruitment - By strategically locating our operations and tap into local talent pools and reduce the need for expensive relocation packages. This approach also enables us to build stronger ties with local communities and develop a more diverse and inclusive workforce.
6. Focusing on wage alignment and incentives - By aligning wages with market rates and job complexity to attract and retain e best talent in high attrition accounts. We remain committed to continuously improving our retention strategy and believe that prioritizing employee retention is critical to building a stronger and more sustainable business for the long term. As part of our BU level retention initiatives, in our HPHS business, we have launched "Operation 90 Days" in the HPHS Call Center, which involves several enhancements and changes in the pre-and post-joining phases to increase retention. The program culminates in a graduation ceremony to celebrate employee success compensation, benefits, career development and recognition programs to strategic goals and objectives. This approach recognizes employees as valuable assets and acknowledges their contributions to desired business outcomes.
The Total Rewards strategy enables a fair, transparent, and high-performance culture, one that recognizes and rewards high performers and incentivizes them to unleash their potential at Firstsource.
Key elements of our Rewards strategy:
1) Enabling business and performance: Clear metrics in place to measure desired business outcomes which help to determine reward elements such as performance bonuses and rewards allocation across business units
2) Differentiated rewards to drive performance: Rewards are clearly linked to performance/talent ratings and principles of performance management are consistently applied across all geographies This has resulted in a more transparent and consistent approach to measuring performance across Firstsource. Companys compensation framework promotes and rewards sustainable performance and contributions based on values, delivery, and performance across all levels of the organization. It also offer a comprehensive benefits package that focuses on health, wealth, and career across the employee lifecycle.
03 III. Activating Purpose
The Company has made activating purpose a strategic imperative that drives their sustainability efforts and positions them for long-term success.
Commitment to ESG
Being a responsible corporate citizen, Firstsources commitment to a sustainable and equitable future is manifested in strong governance standards, a sharp focus on employee wellbeing, delivering community impact, and mitigating our environmental footprint.
Inclusion & Diversity
Firstsources efforts in inclusion and diversity are integral to our sustainability initiatives. It recognize that a diverse and inclusive workplace drives innovation and success and enables them to better serve its customers. By prioritizing purpose and sustainability, the Company is not only creating a more engaged workforce but also positioning themselves for long-term success in a rapidly changing world.
Firstsource recognizes that creating a diverse and inclusive workplace is not a one-time event but an ongoing journey. It strive to unlock the collective power of all Firstsourcers by fostering a culture of respect, collaboration, and belonging. The Company believes that it plays a crucial role in this journey and share the responsibility of creating a purposefully diverse workplace.
Firstsource deepened the reach of its I&D program in FY 2022-23 by taking the strategy and execution to the Business Unit level. Each BU Head set goals based on a dashboard where they could see their diversity on various dimensions, globally, on a quarterly basis to track progress. It also enhanced its employee support system by adding an Affinity Group for Underrepresented Ethnic and Racial Minority Communities and Allies, in addition to the Womens Inspiration Network and Source of Pride. The Company also partnered with Laddr on the launch of their platform that caters to mothers and helps them advance their careers.
The Company released a formal, global I&D policy designed to help each Firstsourcer understand their role in this journey, offering guidance & clarity as we work towards creating an inclusive workplace. The policy also reiterates our commitment to creating an organization where employees can bring themselves to work, regardless of their gender, ethnicity, sexual orientation, religious beliefs, age, physical abilities, and other personal and social attributes. It emphasizes the following behaviors to make our teams more welcoming, safe, and equitable:
Raising self-awareness on I&D, Fostering respect, sensitivity, and fairness in interpersonal interactions, and intentional personal action to support I&D priorities in the organization.
The policy provides an overview of the organizations I&D strategy and design, champions for I&D efforts, relevant reporting & feedback procedures, and related policies at Firstsource.
Initiatives undertaken to promote inclusion and diversity
In honor of International Pronouns Day, the Company launched an Inclusive Language Guide to help Firstsourcers speak, write, and interact more inclusively. This guide highlights the importance of inclusive language at the workplace and offers simple tips and tweaks to communicate without exclusion. Firstcource recognize that creating a workplace where everyone feels valued and respected requires ongoing effort and education.
By providing resources like the Inclusive Language Guide, it is helping to foster a culture of inclusivity and respect that benefits all Firstsourcers. Firstsource developed and piloted discussion packs to aid employees in holding conversations about inclusion and diversity topics, including creating psychologically safe teams. Company believes that these discussions will help Firstsourcers build their understanding of I&D topics, share their perspectives, and develop solutions that will help our teams work together more effectively. Firstsource initiated a 6-month mentoring program for select women leaders in India, designed to enable and empower them and close the gender gap at leadership levels.
The program is in partnership with We-Ace, a reputed organization that provides skilling, mentoring, and employment opportunities for women. The 6-month mentoring program, aimed at retaining, advancing, and supporting our women leaders, will be a rich journey for participants to realize their maximum potential through in-depth discussions with their mentors, masterclasses, and industry leadership connects. The mentors, carefully matched depending on the skills, expertise, and goals of the mentees, will share their knowledge, experiences, and an external perspective with the participants while providing candid feedback and objective support to help them navigate vulnerabilities.
The Companys Chief Executive Officer (CEO), Vipul Khanna, signed the NASSCOM I&D Pledge, committing to creating an ecosystem that fosters inclusion and diversity at Firstsource. It celebrated various I&D heritage months, including Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month, Pride Month, National Hispanic Heritage Month, and Black History Month.
Inclusion & Diversity Events
In June 2022, Firstsource celebrated LGBTQ+ Pride Month across all its UK sites, showcasing its commitment to inclusion and diversity. The Company took part in local Pride Parades, held awareness postings and story sharing from its people in the LGBTQ+ community, and launched our "Source of Pride" platform. This strategic focus on diversity and inclusion has not only helped to create a more inclusive and welcoming workplace but also positioned them as an employer of choice for a wide range of diverse talent.
The Company celebrated Black History Month in October 2022 for UK and February 2023 for US, with volunteers designing informative fact cards for children from Black and other underrepresented communities. This initiative helped to promote a greater understanding of Black history and culture and also demonstrated our commitment to supporting and celebrating diverse communities. The Company also celebrated National Hispanic Heritage Month (Sept 15-Oct 15) and Asian American Native Hawaiian and Pacific Islander Heritage Month (May) in the US.
In March 2023, the Company celebrated International Womens Day with a range of activities and events across all its sites. Our engagement team organized site visits and a virtual roadshow, featuring powerful sessions on self-promotion and ownership of achievements. This focus on empowering women and promoting gender equality is not only the right thing to do but also helps to drive business success by promoting a more diverse workplace.
Companys strategic focus on employee engagement and diversity and inclusion has helped to create a holistic and productive workplace and has positioned Firstsource as an employer of choice for diverse talent.
Communities:
As a purpose-led organization, the Company is infusing sustainability into the core of its transformation and creating a tangible impact in the lives of its people, clients, shareholders, and the community alike.
Employee volunteering and giving:
Leadership participation: The Company launched the “Every Leader a Volunteer” campaign to promote volunteering at the top level. In the first year of this campaign, and saw 17% of its leadership across globe participating in various programs contributing 600+ hours. Its leaders have empowered young minds through mentorship sessions, virtual classroom teaching, career guidance, women empowerment sessions, livelihood support projects, along with sharing their deep expertise by providing pro-bono support in the area of Tech & Consulting, while also supporting the launch and milestones of its CSR Projects.
High-impact volunteering programs: The Comapny started structured high-impact projects in partnership with non-profits. eVidyaloka Program are some examples where our employee volunteers are committed to providing support on a long-term project spanning 3-6 months, teaching or mentoring students.
Purpose-led employee giving projects: The Company employees across the globe continued to show their love and affection for communities by contributing regularly to charity through various fundraising and payroll programs.
• In the UK, employees donated to regular payroll programs and participated in various fundraising events.
• In the US, employees supported causes such as the Norton Candy Drive and Susan G. Komen Cancer patient support fund drive.
• In India, our Give India Payroll program positively impacted over 12,000 lives through initiatives such as the Gift a Smile, Book a Smile, and Art Truck Project.
Purpose led employee volunteering projects: The Company employees across the globe continued to share their time and knowledge through various events anchored by CSR/HR team across all countries.
• In the UK and US, volunteers participated in virtual expert sessions on environment awareness, sign language, mental health and various other activities to support our communities
• In India, volunteers participated in various environmental activities such as clean-ups, microgreen growing, and eco-friendly bag making, and supported medical camps, para badminton tournaments, pro bono work for NGOs, and livelihood support for community wellbeing.
Empowering underprivileged girl students: The Company is also proud to partner with Hopeworks Foundation to provide wings to girl students from underprivileged backgrounds. Through its apprenticeship program, Company enable these students with on-the-job skilling, empowering them to support their families and alleviate poverty. By investing in the education and development of our future leaders, Firstsource is not only creating a more equitable society but also a more prosperous future for all.
IV. Building Managerial and Leadership Capability
Talent development
In FY 2022-23, Firstsource emphasized the importance of adapting to rapidly changing markets in order to sustain employee productivity & progress against business goals. At Firstsource Academy, the Company aims to cultivate a culture of continuous learning and curiosity, providing opportunities for reskilling and upskilling that cater to the diverse needs of the employees.
The Companys approach to skilling is multi-faceted, with three key principles guiding the philosophy. Prioritize empowering learners to take ownership of their own development and become self-motivated Establish a learning-friendly environment that provides diverse forms of support and resources, including a gamut of facilitated to self-directed forms of learning assets across a range of complexities and delivery styles
Make learning more accessible by creating a learning ecosystem that encompasses internal and external sources of knowledge and insights, as well as social reinforcement through learning communities The Company encourages employees to take charge of their learning and career paths and commit to an Individual Development Plan (IDP), early in the year. Individuals can choose from a wide range of learning opportunities including webinars, gamified peer learning sessions, knowledge sharing sessions, microlearning through Blinkist, and other forms of self-directed and external learning opportunities. As a result, 89% of the employees took advantage of at least one of these opportunities, consuming over 27,000 hours collectively. The frontline leaders contributed significant time towards this through their participation in the RISE program.
The Company also launched the RISE leadership program, for frontline leaders, a initiative focused on equipping them with the necessary skills and tools to lead their teams effectively. A swiftly changing business landscape brings a mixed bag of opportunities, challenges, and associated risks. In such a scenario, sensitizing employees to identify potential threats is the key to success. In addition, the Company acknowledged the huge potential of its future leaders and the need to hone that potential. With this objective in mind, the Company launched the People Leader Development program for Work from Home (WFM). This was a rewarding and engaging learning journey of 6 months focused on effective communication, engagement, coaching and career development.
Recognized for excellence
Industry Awards and Recognitions for our People Practices
The accolades bestowed upon us in FY 2022-23 serve as a testament to the effectiveness of the HR strategy. By prioritizing a people-centric approach, implementing innovative HR practices, and fostering a robust employer brand on a global scale, the Company has been able to achieve exceptional results, which have been recognized by the industry. These awards not only validate the Companys efforts but also inspire to continue to push the boundaries of HR excellence and maintain the position as a leader in the field.
i. Bloomberg GEI Index
The Company is proud to have been included in the GEI for the second year in a row, alongside 483 other companies from around the world. Firstsources commitment to transparency and data reporting has earned it a perfect 100% data disclosure score for the second consecutive year and the Company has made significant score since last years report.
The Company is particularly pleased to have achieved higher scores in three key areas: Female Leadership & Talent Pipeline, Pro-Women Brand, and Inclusive Culture. These improvements are a testament to the Companys ongoing efforts to identify gaps in its policies and incorporate best practices wherever possible. Benchmarking the inclusion and diversity practices against the best in the industry is critical to ensuring the Company remains relevant and committed to its goal of fostering an inclusive workplace. As the Company continues to analyse its results, it remain committed to identifying new ways to improve its inclusion and diversity efforts and become an employer of choice for women.
ii.Disability Confident Leader in UK
The Company is proud to share its recognition as a Level 3 Disability Confident Leader in the UK. This is an advancement of its level as a Disability Confident Employer from last year. This status is awarded to Companies that have built best practices and recognize the values that disabled people bring to their businesses. Level 3 status implies that the Company is taking all the core actions of being a Disability Confident Leader and it has provided evidence to demonstrate that it is sharing best practices in the community. This milestone demonstrates the continued journey to ensure that every Firstsourcer has the opportunity to fulfill their potential and realize their aspirations.
iii. GOLD at the ET HRWorld Future Skills Award for High Impact Hybrid Learning Program
Firstsource won a GOLD award at the ET HRWorld Future Skills Award for its High Impact Hybrid Learning Program. The award is in recognition of the digital learning transformation at scale undertaken in the past year. The win validates the Companys agile, iterative approach that allows it to experiment different formats on different parts of the enterprise and scale them in a systematic way, enabling operational excellence, deepening domain expertise, and building capability for a future-ready workforce.
Risk & Concerns, Risk Mitigation
Banking and Financial Services
Risk Management report describes enterprise-wide risk management philosophy, structure, and practices in the Company. Readers are cautioned that risk related information outlined here is for information purposes only. This report contains forward-looking statements, about risks and uncertainties affecting our business objectives. The business model is subject to uncertainties that could cause results to differ materially from those reflected in the forward-looking statements. Readers are requested to exercise their own judgment in assessing the risks associated with the Company and review all the factors discussed elsewhere in this annual report. In todays dynamic environment, organisations are faced with multiple risks and thus creating and sustaining value for our stakeholders requires robust governance and a strong risk management function.
Our Risk Management Framework:
Firstsources Risk Management framework is designed and implemented on the basis of COSO Framework (Committee of Sponsoring Organizations) which is globally accepted and recognised framework that provides guidance and thought leadership on enterprise risk management and internal controls. Enterprise Risk Management at Firstsource seeks to minimize adverse impact of risks on key business objectives and enables the Company to leverage market opportunities effectively. These risks are continuously tracked with the help of Key Risk Indicators (KRIs) defined by the risk management team and risk owners.
Risk Management Process:
The Company has defined an integrated Enterprise Risk Management and Internal controls framework encompassing a top down and a bottom up risk assessment process.
Top-down
Focusses on the broader cross cutting risks, macro economic factors that affect the entire organization and its ability to achieve its goals and strategic objectives and that should be on top of leaderships agenda.
Bottom-up
Bottom-up approach focusses on in-depth assessment of the Companys business processes, its specificrisks and how these risks are being controlled.
Aligning transactional risk data from Operational Risk registers, Internal Audits, Operational Risk events with the broader enterprise level risks identified through management discussions, workshops, macroeconomic assessment etc. will create line of sight into what is causing an enterprise risk and how those risks could be mitigated or responded to.
The risks are identified across the defined risk categories taking the Companys business objectives into consideration. Stakeholders with clearly definedroles and responsibilities at various levels take up the response, remediation, monitoring, tracking, reporting and review at defined periodicities.
Information Risk Management:
The risk landscape in the current business environment and evolving regulatory frameworks is changing dynamically with Cyber Security, Fraud Detection and Prevention, Information Security, Data Privacy and Business Continuity featuring prominently. To effectively mitigate these emerging risks; a focused strategy is prepared around Information Risk Management.
Key Business Risks & Mitigation:
The Companys key business risks and their mitigation measures include:
SUSTAINABILITY REPORT
Our responsible and sustainable business approach is rooted in what matters to our wide range of stakeholders. The Corporate Responsibility team sets the strategic direction for meeting our commitment to society and supports the integration and implementation of programmes and nonfinancial reporting throughout the company. We have started monitoring key data and parameters that are central to the environmental, social and governance (ESG) performance and the impact on the company.
As a demonstration of this, the details below give you a summary of environmental, social and governance data across Firstsources global operations. This brings together key metrics that can be found across our reporting segments, to give our stakeholders the information that matters to them.
GREEN BUILDINGS
EPC certified building [IN**] [UK**]
STP in all buildings [IN**] [PH**]
ISO 14001 and 45001 [IN**] [UK*]
ISO 50001 [UK*]
WATER PRESERVATION
Installation of sensor taps to minimise water wastage [IN*] [PH**] [UK*] [US**]
Usage of eco- friendly housekeeping consumable such as bio chemicals for waterless urinals [IN*] [PH**]
Treated water usage in gardening, flushing & HVAC cooling tower [IN**] [PH*]
Rainwater harvesting [IN**] [UK**]
NATURE PRESERVATION
Eco friendly chemicals being used in HK operations [IN*] [PH**] [UK**]
Ambient air quality monitoring, Ambient noise testing and Water testing [IN*] water testing [PH**] [UK*]
Safe disposal of sanitary Napkins at centres through Napkin disposal machines or safe collections for environment friendly disposal [IN*] [PH**] [UK**] [US**]
Use of environment friendly Housekeeping Chemicals [IN*] [PH**] [UK**] [US**]
Monitoring of department wise paper consumptions [IN**] [PH**] [UK**]
Use of R-134 refrigerant gas & restriction on use of Ozone depleting gases in HVAC System [IN*] [PH*] [UK*] [US**]
Purchase of Green Renewable Power from Solar / Wind parks [UK**] [IN**]
No usage of pesticides in Gardening activities [IN**] [PH**] [UK**] [US**]
Usage of Eco-Friendly Dustbin Liners [IN**] [PH**] [UK**]
DIRECT AND INDIRECT ENERGY USE
Deployment of PUC compliant vehicles in transport [IN*]
Carpooling & common car & bus facility for employees from nearest Metro or railway station or pick up point [IN**]
Installation of high-quality energy efficient Jet dryers [IN*] [UK**] [US*]
Motion sensor-based lighting system [IN**] [UK**] [US*]
Energy efficient AC/PAC for secured areas [IN*] [UK**] [US*]
Energy efficient UPS and LED lighting [IN*] [PH**] [UK**] [US*]
HVAC Chiller- R134 green gas [IN*] [PH*] [UK**] [US*]
Air curtains to control cooling leakage and better energy efficiency [US*]
Use of VFDs for AHUs [IN**] [US*]
Use of Automated Environment control system for cooling & air circulation to maintain at optimum level [IN**] [PH**] [UK**] [US*]
SAFETY/ HEALTH
Eco-friendly fogging activity to control surface contamination against microbes
Automated temperature checks, mandatory social distancing and wearing of masks
Regular cleaning of filters and ambient temperature maintained 2 degrees more than the normal set temperature
Use of Chemical Spillage kit in centre to quickly arrest any chemical or oil spillage [IN**] [PH**] [UK**]
WASTE MANAGEMENT
Segregation of dry and wet waste [IN*] [PH**] [UK**] [US*]
E-Waste disposal through government approved vendors [IN*] [PH**] [UK**] [US*]
Hazardous waste disposal though authorised recyclers [IN*] [PH**] [UK**] [US*]
Bio Waste Disposal as per regulatory requirements [IN**] [UK**] [US**]
Disposal of paper waste separately with environment friendly paper recyclers [US**]
Measurement & monitoring of food wastage in canteens [US*]
Discarding Plastic Plates & Plastic spoons in cafeteria [No usage of plastic] [PH**] [UK**]
OWC (Organic Waste Convertor) in operation to process food/ wet waste Lamination of old and broken tabletop furniture to enhance durability
Purchase of refurbished furniture and minimise new procurement of wood-based products [UK*]
Note:
1) * Implemented at majority of locations
2) ** Implemented at key locations
3) The short codes represent the implementation in the following countries:
a. IN is India
b. US is USA
c. UK is United Kingdom
d. PH is Philippines
Internal Control Systems and Their Appropriateness
Firstsource has institutionalized a system of internal controls, with documented procedures covering all corporate functions. Internal controls provide reasonable assurance regarding the effectiveness and efficiency of operations, the reliability of financial controls, and compliance with applicable laws and regulations.
Forward Looking Statement
The financial statements have been prepared in compliance with the requirements of the Ind-AS. The Companys management accepts responsibility for the integrity and objectivity of these financial statements and various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been financial madeon prudentandreasonablebasis.The statements reflect the form and substance in a true and fair manner and reasonably present the Companys state of affairs and profits are cautioned that this discussion contains forward-looking statements that involve risks and uncertainties. When used in this discussion, words like ‘will, ‘shall, ‘anticipate, ‘believe, ‘estimate, ‘intend and ‘expect and other similar expressions, as they relate to the Company or its business, are intended to identify such forward-looking statements.
The Company undertakes no obligations to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Accordingly, actual results, performances, or achievements could differ materially from those expressed or implied in such statements. Factors that could cause or contribute to such differences include those described under the heading ‘Risk Factors in the Companys prospectus filed with the Securities and Exchange Board of India (SEBI) and factors discussed elsewhere in this report. Readers are cautioned not to place undue reliance on the forward-looking statements as they speak only as of their dates. Information provided in this Management Discussion and Analysis (MD&A) pertains to Firstsource Solutions Limited and its subsidiaries (the Company) on a consolidated basis unless stated otherwise.
2024, IIFL Securities Ltd. All Rights Reserved
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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2024, IIFL Securities Ltd. All Rights Reserved
Follow us on
ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.