Growth shifts to FY16E… • Firstsource :: ICICI Securities, link

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Growth shifts to FY16E…
• Firstsource reported stable Q2FY15 earnings. Revenues, EBITDA
margins and PAT were broadly in line with our estimates
• Revenues from operations came in at | 774 crore (| 772.2 crore
estimate) and grew 2.4% QoQ but declined 5.1% YoY
• At 12.3%, EBITDA margins were flat QoQ (12.3% in Q1) but modestly
below our 12.5% estimate
• Reported PAT of | 61 crore was also in line with our | 59.6 crore
estimate, led by higher other income

Poised to achieve net-debt neutral target; maintain BUY
We estimate FSL to report revenue, earnings CAGR of 6%, 29% over
FY14-FY16E (average 13.5% EBITDA margins in FY15-16E), vs. 12%, 44%
reported during FY09-14 (average 11.9%). FSL operations have stabilized
and are being aligned to capture incremental opportunities. We value the
stock at | 50 i.e. at 6.8x FY16E EV/EBITDA (inline with its 5-year average
6.8x).

LINK
http://content.icicidirect.com/mailimages/IDirect_FirstSource_Q2FY15.pdf