Firstsource which provides BPO services to telecommunications, healthcare as well as the BFSI verticals, announced its Q2 results wherein the company reported profit of Rs 28.2 crore as compared to last year’s profit of Rs 45.59 crore at a drop of 38 percent.

The company said that growth was witnessed in the communications and healthcare businesses but the credit card business saw a dip. The company claimed that while the quarter did not yield in any new client additions, it is expecting expanded contracts from two UK-based telecom clients and a domestic client.

Revenue for the quarter at Rs 425 crore was up 53.8 per cent from Rs 276 crore in the same quarter last year. On a sequential basis, the company had reported a net loss of Rs 50 crore, whereas revenue was up 4.2 per cent from Rs 407.8 crore.

Hedging and other income loss totaled Rs 4.5 crore. Adoption of accounting standard 30 (AS 30) also resulted in another Rs 2.5 crore loss.

The company revised the revenue guidance to 21 per cent in dollar terms from the original guidance of 33-38 per cent in dollar terms.

“While the business environment is challenging, we are pleased that we have been able to grow revenues and improve margins. Our existing client base is largely stable and we are increasing business with them. We believe that while the next few quarters would see relatively slower growth, the long term prospects for the BPO industry continue to be extremely compelling and will offer high long term growth opportunities,” said Ananda Mukerji, MD & CEO Firstsource.