Rakesh Jhunjhunwala hikes stake in this BPO firm, shares rally

Shares of Firstsource Solutions advanced over 4 per cent in Friday’s early trade after ace stock picker Rakesh Jhunjhunwala increased stake in the company to 2.88 per cent during the April-June quarter.

Latest shareholding data showed that Jhunjhunwala bought an additional 57 lakh shares in the company during the quarter ended June 30, taking the total number of shares to 2 crore. Earlier, he had a 2.06 per cent stake in the company as of March 31.

Mutual fund houses also increased their stake to 7.78 per cent from 7.46 per cent earlier. On the other hand, foreign portfolio investors cut their stake to 7.64 per cent from 9 per cent in the March quarter, data available with BSE showed.

The scrip traded 4.21 per cent higher at Rs 42.10 at around 9.23 am (IST), while the benchmark BSE Sensex traded 0.43 per cent down at 36,579 at around the same time.

The BPO firm in May posted a 6.8 per cent decline in consolidated net profit to Rs 91.5 crore for the quarter ended March 2020. It had posted a net profit of Rs 98.2 crore in the corresponding period of previous fiscal.

Its revenue from operations grew 10.6 per cent to Rs 1,067.2 crore in the reported quarter from Rs 964.2 crore in March 2019 quarter.

“Notwithstanding the debilitating pandemic, we are pleased with our Q4 progress – we adapted rapidly to a distributed operating model to serve our client’s needs, we actively managed the safety and wellbeing of our employees, grew revenues by 8.2 per cent and made meaningful progress on our growth strategy,” Sanjiv Goenka, Chairman of RPSG Group and Firstsource Solutions, said.

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