Leading Indian IT firm eClerx reports strong growth; posts 9.8% revenue growth and improved profitability despite industry headwinds
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Known for providing business process management, automation, and analytics services to a number of Fortune 2000 enterprises, Mumbai-based IT consulting firm eClerx Services Ltd. has come out with upbeat financial results for the quarter ended December 31, 2023. The company reported sequential and Y-o-Y improvements in revenue, profit and margin metrics, underscoring its strong operating leverage and continued focus on optimizing delivery costs. Founded in 2000 by Anjan Malik and PD Mundhra with the goal of providing innovative services and solutions to large global companies undergoing rapid business transformation, eClerx has metamorphized into an industry leader with an internal talent pool of 17,000+ people operating across India, Australia, Canada, Germany, Italy, Netherlands, Philippines, Singapore, Thailand, UK, and the USA.
Key highlights from the consolidated financial results reported for the quarter ended December 31, 2023
On a consolidated basis, the company’s operating revenue stood at INR 752.8 crore vs. INR 686.7 crore in Q3FY2022-23, signifying strong 9.6% Y-o-Y growth and 4.3% growth on a sequential basis. This outperformance has been driven by the company’s robust offshore growth strategy that has also contributed to improved margin metrics.
In USD terms, eClerx posted USD 90.5 million in operating revenue that represents a 6.4% increase over the same period last year. Total revenue that includes other business income increased to INR 773.5 crore, representing a 9.8% Y-o-Y growth as compared with INR 704.5 crore in Q3FY2022-23.
Earnings before interest and taxes (EBIT) grew to INR 194.5 crore as compared with INR 178.5 crore in Q3FY2022-23, representing a 8.9% EBIT growth on a Y-o-Y basis.
Net profit also increased to INR 138.6 crore, a healthy 5.7% growth when compared with the Q3FY2022-23 figure that came in at INR 131.2 crore.
Basic earnings per share (EPS) for Q3FY24 increased to INR 28.76 from INR 26.41, amounting to a 8.9% Y-o-Y increase in this vital profitability indicator.
The company’s upbeat performance is also credited to the total delivery headcount, which increased by 737 in the December quarter.
Reflecting on the company’s performance in Q3FY24, Mr. Kapil Jain, Managing Director and Group CEO at eClerx remarked, “Our operating revenue has grown 4.3% sequentially in INR terms, which is great performance given the challenges faced by the industry. This performance reflects our commitment towards clients and improving their performance. Our focus on capability development has yielded dividends, both in terms of new client wins and existing customers. Our emphasis remains on leveraging eClerx’s operational expertise with emerging technologies to address our clients’ business challenges. This customer-centric philosophy should help us deliver on our promise of being a leader in business transformation.”
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