Firstsource Solutions shares up 4% on tie-up with Microsoft

Firstsource Solutions, a global provider of  specialist domain-led business process services (BPS) and an RP-Sanjiv Goenka Group company, has partnered with tech major Microsoft to provide digital transformation services, a statement says.

Firstsource Solutions' shares surged as much as 3.6% to reach an intraday high of ₹318.50 apiece on the BSE today.

At the time of reporting, Firstsource Solutions' shares were up 0.50% at ₹308.90 apiece on the BSE. The stock opened higher today at ₹317.55, in sync with the strong broader market, against the previous close price of ₹307.35. The company’s market cap stood at ₹21,530.05 crore. Over the past month, the stock has dropped 8.51%, but it surged 62.28% in the last six months, and gained 66.70% year-to-date (YTD).

The company said the alliance will utilise Microsoft Azure’s suite of technologies, including Azure OpenAI Service, Azure AI Search, and Azure AI Language. “These solutions will offer a multi-modal, multi-channel search experience, significantly improving effectiveness and personalisation for businesses."

Ritesh Idnani, managing director and CEO at Firstsource Solutions, mentioned that the collaboration with Microsoft provides clients with a combined value that surpasses the sum of its parts. Sangita Singh, General Manager, ITES at Microsoft India and South Asia says the collaboration will drive innovation and deliver more effective, personalised experiences.

Firstsource Solutions reported a 7.35% increase in net profit, reaching ₹135.25 crore in Q1 FY25, up from ₹125.99 crore in the same quarter last year. Revenue from operations surged by 16.8%, climbing to ₹1,783 crore in Q1 FY25, compared to ₹1,526.7 crore in Q1 FY24. However, total expenses also rose by 18.17%, reaching ₹1,625.7 crore in Q1 FY25, up from ₹1,375.7 crore in the corresponding period of the previous year.

In the last week of July 2024, Firstsource Solutions unveiled Firstsource relAI (pronounced re-ly), a collection of AI-driven platforms, solutions, and services designed to propel digital transformation. The company informed that the clients utilising relAI can expect several advantages. In HealthTech, the platform facilitates up to 95% screening rates, boosts gross Medicaid conversion rates by 22%, and cuts uncompensated care by 30-35%, while improving monthly cash collections by 44%. It also reduces bad debt placements by 31%, enhances dental claims processing times, and improves first-pass rates.