Our Special Correspondent
Calcutta, July 7: Firstsource Solutions, the business process management firm, has sold part of its domestic business to Vertex Customer Management India to focus on more profitable operations.
Sources said Firstsource, owned by Calcutta-based RP-Sanjiv Goenka Group, is likely to receive Rs 15 crore as consideration for hiving off the loss-making operations.
The domestic business being sold is mainly located in Bangalore and Calcutta, addressing telecom giants such as Airtel and Vodafone, apart from RP-SG group firms such as CESC and Spencer's, comprising 4,500 seats.
The operation contributed around Rs 100 crore to Firstsource's topline but lost nearly Rs 10 crore in the process. The deal is expected to be value accretive from the bottomline perspective, sources said.
The transaction was reported to the bourses through a regulatory filing where it said the company was to sign definitive agreements to sell a portion of its India domestic business to Vertex Customer Management India, subject to approvals.
Firstsource had reported revenues of Rs 892.3 crore for the quarter ended March 2017. For the year ended March 2017, the revenues were at Rs 3,555.6 crore, up 10.5 per cent over the previous year.
The India business accounted for 6.1 per cent of the said quarter's revenues and 5.8 per cent for the fiscal. Shares of Firstsource closed lower at Rs 34.95 on the BSE.
The transaction comes ahead of the re-organisation of the business of the RP-SG group where Firstsource will be part of an entity which will house all the new age businesses such as BPO, FMCG, real estate and sports. At present, Firstsource is a step-down subsidiary of CESC.
Source: The Telegraph