You have to admire a company that keeps growing despite turning over almost 100% of its domestic employees every year! Such is the case for Mumbai-based offshore BPO player, Firstsource, where annualised attrition in its Indian business reached 97% in the quarter to 30th June. Attrition in its core offshore business, serving US and Europe, is not nearly so bad, but even so, employee turnover worsened to over two-thirds. Onshore attrition also deteriorated and is now approaching 40%.
Despite all this, Q1 headline revenues grew by 29% yoy to Rs6.75b (say £80m), nearly 9% higher qoq. EBIT margins held steady over the prior quarter at 5.0% and were 1 point higher yoy. Firstsource gets almost a third of its revenues from the UK market, a much higher skew most other India-based players.