Firstsource Solutions up on agreement with Idea Cellular

Firstsource Solutions is trading higher on the BSE after the company entered into a five-year outsourcing agreement with Idea Cellular.

The scrip is currently trading at Rs 25.20 per share, up 0.55 points or 2.23% on the BSE.

The stock opened at Rs 25.25 per share as compared to its previous close of Rs 24.65 per share.

Intraday, the counter touched a high and a low of Rs 25.65 per share and Rs 24.75 per share, respectively.

So far, 42,04,707 shares of the company were traded on the BSE.

The stock touched its 52-week high of Rs 50.80 per share on August 27, 2008 and a 52-week low of Rs 9.5 per share on January 28, 2009.

The stock has declined 2.70% since past one week, but gained 1% since past one month.

Firstsource Solutions has entered into a five-year outsourcing agreement with India’s third largest private sector mobile services provider, Idea Cellular. The deal is for the total consideration of Rs 145 crore.

As per the terms of the contract, FSL will offer customer management interaction services along with customer service, billing, new product information and plan details related interaction services to the cellular major’s Kerala and Tamil Nadu based subscribers in English, Malayalam and Tamil languages from its Coimbatore unit.

At present, out of the total revenues of FSL of around Rs 1,750 crore, Indian operations account for almost 12% or about Rs 210 crore.

Telecom is the major revenue contributor for FSL, which accounts for close to 34% of its total revenues.

The company has some of the prestigious clients from the telecom industry like Airtel and Vodafone.